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Integrity Scorecard

2007 Assessment

Thailand: Integrity Indicators Scorecard

Thailand: Integrity Scorecard Report > Sub-Category: Privatization
Indicators		Score
50	Is the privatization process effective?	75
51	Can citizens access the terms and conditions of privatization bids?	75

Indicator and sub-Indicator Details

Is the privatization process effective?

50a: In law, all businesses are eligible to compete for privatized state assets.

Score:

YES

Comments:

References: Ministry of Finance Regulation on Trade and Buy in Assets of Public Organization of 1992, No. 8 stipulates that trading of privatized government assets must take place at the Stock Exchange Market.

50b: In law, there are regulations addressing conflicts of interest for government officials involved in privatization.

Score:

YES

Comments:

References: The State Enterprise Asset Policy Commission Regulation on Public Hearing of 2000, No.4 states that committee members appointed to manage the privatization process must not be stakeholders.

[ LINK ] (in Thai) [ LINK ] (in Thai)

50c: In practice, conflicts of interest regulations for government officials involved in privatization are enforced.

Score:

100

Comments: Privatization of PTT during the Taksin Government was based on patronage that benefited several government politicians close to the PM.

References: Telephone interview with Suporn Depan, analyst, real estate team, the Bank of Thailand, Sept. 4, 2007

Can citizens access the terms and conditions of privatization bids?

51a: In law, citizens can access privatization regulations.

Score:

YES

Comments:

References: The State Enterprises Assets Act of 1999, Section 19 states that privatization information must be disclosed to the public.

51b: In practice, privitizations are effectively advertised.

Score:

100

Comments: Advertisement regarding privatization is done when there is a need to attract capital. However, when stocks of good state enterprises are sold, there is little advertisement.

References: Telephone interview with Suporn Depan, analyst, real estate team, the Bank of Thailand, Sept. 4, 2007

51c: In law, the government is required to publicly announce the results of privatization decisions.

Score:

YES

Comments:

References: An Announcement of the Stock Exchange of Thailand states that companies that are limited and public companies must announce the results of privatization.

51d: In practice, citizens can access privatization regulations within a reasonable time period.

Score:

100

Comments: General privatization regulations and information are accessible through the internet within a reasonable time. However, the cost of obtaining the privatization regulations (travelling, buying forms..) is a financial burden for the majority poor. In addition, obtaining project-specific information related to particular privatizations requires the filing of a freedom of information requests, which adds time and cost to the process.

References: Telephone interview with official, Securities and Exchange Commission Call Center 02-229-2222, Securities and Exchange Commission, Sept. 5, 2007

51e: In practice, citizens can access privatization regulations at a reasonable cost.

Score:

100

Comments: While generalized privatization regulations are available online, obtaining details related to individual privatizations requires the filing of a freedom of information request. In practice, this is difficult for citizens and adds time and cost.

References: [ LINK ].