Govt spending Bt4.2 billion to cover up Thaksin's botched policy
June 21, 2012 00:00 By The Nation
The government has earmarked Bt4.2 billion under the guise of loan repayments in order to cover up the mismanagement of the price intervention for longan made under the Thaksin Shinawatra administration in 2004.
“PM Yingluck Shinawatra is using the taxpayer’s money to whitewash her brother Thaksin,” Democrat Party spokesman Chavanond Intarakomalyasut said on Thursday.
Chavanond said the mismanagement happened after the Thaksin administration allocated Bt3.4 billion to prop up the price of 312,373 tons of longan for northern farmers.
Under the price intervention scheme, the administration would back the Krung Thai Bank loans to the Marketing Organisation for Farmers.
The MOF contracted, in turn, Po Heng International Co to process the fresh fruit into some 90,000 tons of dried longan.
But the fruit processing was only able to turn out about 40,000 tons of dried longan, an insufficient amount to repay the loans.
The allocation of additional funds would enable the MOF to repay the bank loans without having to check the amount of longan involved in the price intervention scheme, Chavanond said.