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Thu, May 3, 2007 : Last updated 20:56 pm (Thai local time)



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Home > Business > Governance study of state enterprises





Governance study of state enterprises

The Thailand Research Fund (TRF) is acting on concerns about below-standard governance of state enterprises caused by political interference that seeks to benefit private interests rather than the public good.

Supported by the TRF, Dhurakij Pundit University will conduct an in-depth study regarding good governance in cooperation with eight major state enterprises: PTT, TOT, MCOT, Thai Airways International, the Electric Generating Authority of Thailand, the State Railway of Thailand, the Tourist Authority of Thailand and the Government Lottery Office.

Pairoj Wongwipanond, head of the study project from Dhurakij Pundit University, said the research would be conducted under the assumption that several state enterprises have management problems, consequently resulting in lower-than-required standards of good governance.

He said the main factor was interference by politicians to favour their private interests rather than the public benefit by influencing the selection process of state enterprise directors and executives without a clear purpose or goal. This usually results in heavy losses.

"The study is expected to be completed over the next six months," said Pairoj.

He said the good-governance standards to be used as a framework for the case study would be applied from the six administrative principles of the Prime Minister's Office: morality, legal ethics, transparency, responsibility, participation and efficiency. The five principles of the Organisation for Economic Cooperation and Development will also be applied.

"The outcome of the study will show at what level Thai state enterprises stand," said Pairoj.

He added that if their root problems were derived from political interference, then that should lead to a reduction in the decision-making powers of politicians.

Watcharapong Thongrung

The Nation








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