Corruption in Thailand: Inflation Hits Government Bribes by Phairath Khampha 30 November 2001 Price of a kickback rises to 40 % of project's engineering and capital cost: poll Thailand's Office of the Civil Service Commission (OCSC) survey revealed that kickbacks - which often averaged 20 to 25 percent of the value of a government project - had as of the beginning of November 2001 risen to as much as 40 percent. The findings of the survey, carried out by a team headed by Dr Nipon Puapongsakorn of Thammasat University's economics faculty, indicated that when the procurement process is longer and more complicated than usual, as in the military, businesses have to pay more than the "normal" kickback rate. Procurement of some supplies by provincial agencies has become especially vulnerable, with bribes rising to 30 or 40 per cent of the project value. For example, funds used to buy mosquito pesticides or chemical solutions to improve water conditions are often misappropriated because fraudulent authorities can claim that the material had already been used - even if no purchase was ever made - a common practice by corrupt Thai government officials. Local politicians and civil servants also demand as much as 40 per cent of total project value in kickbacks on environmental projects. In many cases the kickback was understood by all parties to be in return for lenient inspections and reviews of environmental standards. The research indicated that local office-holders were cheating more than those in central government because most were not certain how long they would stay in power. Recent moves to decentralise power, the research said, also meant there were fewer agencies to investigate funding as well as a general loosening of checks and balances. Local politicians often try to intervene in the budget process to allocate as much funding as possible to their own provinces. Several projects are initiated by locally influential persons to draw in as much budget as possible. In cases when the politicians lose power before the procurement process has even started, some projects are stalled indefinitely. Lately, politicians had been joined by members of the burgeoning number of government committees trying to get their share of kickbacks. Inducement is done not only by money, but also by the promise of higher positions in the civil service. This is done so that bureaucrats at all levels can be lured into the same camp as those trying to cheat. Several businessmen interviewed for the project said it was common for members of Parliament to ask for their kickback in a single lump sum whenever an election was on the horizon, apparently because they needed the money to fund their election campaigns. The OCSC team recommended including grass-roots organisations in the procurement process and encouraging civil servants with high moral standards. Research suggested that strict enforcement of the law and limiting the opportunity for the corrupt to cheat would be the best measures to stop graft. According to the research, corrupt officials would think twice if punishments were strict and harsh enough. Drawing in grass-roots organisations as well as encouraging civil servants with high moral standards would also help eliminate kickbacks.to create a more transparent system, the team concluded.