Credibility of Thai Legal System

[Gadfly]

Looking at several of the longer threads here and some other recent developments, it seems as though they have something in common: reports suggesting that the international community has serious doubts about the credibility of the Thai legal system:

 

1. The two airplane seizure threads.

 

2. The thread about the murder of Mike Wansley.

 

3. The WTO ruling finding that Thailand not only fails to consistently apply its own laws, but that the Thai authorities are not a reliable source of authority on their own laws.

 

I did a little poking around on the net, and found this: No arbitration clause, no loan says Japan
 Thai court system not an option for mass transit loan That is the headline of the article verbatim.

 

I remember some articles about this topic a few years back, but I seem to be seeing many more. I don't think the legal system has changed or gotten worse. Instead, I think the internet allows everyone (investors, countries, ordinary citizens) to compare notes now, they are doing so, and they see a pattern.

 

Look at that headline for that article about Japanese investment in Thai mass transit. The Japanese are generally pretty reticent about this sort of thing, but they aren't mincing words when it comes to investing serious money in Thailand.

 

I wonder if the Thai establishment, senior bureaucracy or whatever you want to call the group that sets policy about these sorts of issues here gets it. Or are they still living in a bubble? Times and standards are changing; I wonder if "they" understand this?

[Flashermac]

As I recall, Thaksin when he was first about to become PM, was ACQUITTED by the court on the charge of fraud, despite solid evidence that he had hidden hundreds of millions of baht in bank accounts under the names of his maid, chauffeur, gardener, poodle, jingjok etc. Millions of baht are said to have changed hands in reaching that decision. Ironically, on the same day another man was convicted on the same charge for doing virtually the same thing. He mustn't have paid enough.

 

And remember the Pheu Takky lawyer who was arrested for leaving a bag of khanom (spiced with millions of baht) in the court room for the judges in another case? Guess what ... he is scheduled to become a Pheu Thai MP on the party list (as soon as he gets immunity).

 

If you are rich enough and powerful enough, you cannot be convicted in a Thai court. Unfortunately for the real amnart (the filthy rich Chinese-Thai businessmen), they are finding out that in the rest of the world their influence means didly squat. Takky himself found that out in the UK, when he brought in millions which he couldn't account for - and the UK govmt seized it.

 

Time for the "untouchables" to wake up and smell the coffee?

 

p.s. The discourging thing is that if you point out how corrupt Thaksin and other politicians are, Thais just shrug and accept it. They seem to expect their politicians to be lowlife bottom-feeders.

 

[Gadfly]

The world is changing, albeit slowly, and the many in the Thai elite (however you define that) here seem to treat this change as an intrusion on their "rights".

 

The discourging thing is that if you point out how corrupt Thaksin and other politicians are, Thais just shrug and accept it. They seem to expect their politicians to be lowlife bottom-feeders.

 

Or you get sued for criminal defamation. But I am an optimist, and I think Thailand, perhaps with some of its elites kicking and screaming about that change, will change.

 

Indeed, the kicks and screams, evidence this change. You would not see those kicks or hear those screams if nothing was changing.

[Coss]

p.s. The discourging thing is that if you point out how corrupt Thaksin and other politicians are, Thais just shrug and accept it. They seem to expect their politicians to be lowlife bottom-feeders.

 

MyWiMee's support of Thaksin is predicated on the thought that he is the best of the lowlife bottom-feeders, as he helped the poor.

 

It is at this point I ask to see the cows he bought for her village and I ask what their names are.

 

Then I leave the room because I am being shouted at and things are sailing through the air towards me.

[ozpharlap]

For a cuntry (sic) famous for its tossing off, it surprises me that they cannot toss things in a straight line

[expat]

They built a condo in Jomtien about 100 meters from the sea contrary to the no-building-over-7-stories-closer-than-200-meters-to-the-sea law. Guess what? The building is still there after the court case. VT 7, I believe, right in front of another condo building built right at the 200 meter limit.

[ThaiHome]

Actually if you had anything to do with real international business you would know that on the whole Thailand rates pretty low in non-payment risk in Asia and very low compared to other developing countries in the rest of the world. The problem is with the political instability over the past 4 or 5 years making it go in the wrong direction. Now I suppose that one could blame the “elites†for this, but the reality is the business world continues to become more and more litigious and nobody wants to pay unless they are made to, and that only after exhausting every legal remedy they can find.

 

Here is a ranking from a company that does such for international businesses.

Country Risk

In this ranking Thailand was downgraded to an A3 from an A2 in 2009. Here is what the rating means.

 

 

A2 The political and economic situation is good. A basically stable and efficient business environment nonetheless leaves room for improvement. Corporate default probability is low on average.

 

A3 Changes in generally good but somewhat volatile political and economic environment can affect corporate payment behaviour. A basically secure business environment can nonetheless give rise to occasional difficulties for companies. Corporate default probability is quite acceptable on average

 

A3 sounds about right for Thailand at this point.

TH

[Khun_Kong]

Isn't that based on corporate responsibility, raather than gov responsibilty, as the current case seems to involve?

 

[ThaiHome]

Isn't that based on corporate responsibility, raather than gov responsibilty, as the current case seems to involve?

 

It has nothing do with corporate or government responsibility. The key phrase, I belive would be:

 

"It reflects the extent to which a country’s economic, financial, and political outlook influences financial commitments of local companies." Link

 

If a country's government was well known for not paying, as Gaddie seems to think Thailand is, then one would expect that to be reflected in these types of ratings, particulary as many of the biggest companies in Thailand are government owned, even many of the public traded ones.

 

Gaddie is again just doing his Chicken Little ranting about how bad business is for foreigners in Thailand and how the end of the world as foreigners know it in Thailand is coming any day now.

 

He has been doing this for about 10 years now and still some people just eat it up.

TH

 

 

[cavanami]

When I was condo shopping, I asked about getting a condo on the top floor...was told, oh no, a farang will never be able to directly buy a condo like that...all the top floor had been bought up by Thais looking to sell to farang at a very healthy profit! Insider "trading" at its best!!!