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gode nyheder den første minister er fyret for misbrug af statens penge længe leve anti korruption
Sacked vice minister admits aiding firm
Student funds used as rice deal guarantee
Former vice commerce minister Veerasak Jinarat has admitted to using money from the state student loan fund as a guarantee for a private firm to honour a rice deal with the Commerce Ministry.
However, the close aide to Commerce Minister Porntiva Nakasai who was ordered dismissed by Prime Minister Abhisit Vejjajiva on Tuesday has strongly defended his integrity.
Mr Veerasak was implicated in a report on the rice sale scheme prepared by the National Anti-Corruption Commission (NACC). The report was handed to the cabinet on Tuesday.
Mr Veerasak told reporters yesterday after meeting Ms Porntiva that he extended credit of 25 million baht to MT Intertrade Co, a local exporter.
The company won a bid for 450,000 tonnes of rice from the Commerce Ministry and needed the money to secure the release of the rice from the Marketing Organisation for Farmers.
"I gave the company the cheques because I have known the company's executives for a long time," he said.
The NACC report said the money came from the state loan fund allocated to Northeastern Polytechnic College where Mr Veerasak serves as the rector.
Mr Veerasak earlier submitted a clarification to the Commerce Ministry and denied any involvement in the ministry's rice sale scheme.
He said the student loan fund he used was a school subsidy and its use did not cause any financial damage.
"I can manage it and the money was returned to the school on Nov 15," he said.
Ms Porntiva said yesterday she would not consider a replacement for Mr Veerasak until the investigation into his actions was concluded.
The cabinet has authorised the commerce minister to look into the allegations.
A panel chaired by permanent secretary for commerce Yanyong Puangraj has been set up to conduct the inquiry and conclude its findings within 30 days.
Ms Porntiva said the prime minister could order the dismissal of vice ministers who are political office holders under the Prime Minister's Office.
Mr Veerasak handed in his resignation to Ms Porntiva yesterday despite having already been dismissed. Ms Porntiva distanced herself from the scandal, saying she did not have to take responsibility.
"I have nothing to do with it. When a man is arrested for drug dealing, should his mother be held to account?" she asked.
Political observers believe Mr Abhisit's decision to dismiss the vice minister was a case of killing two birds with one stone.
It would not only boost the prime minister's popularity but also prevent authorities from delving into irregularities in the government's rice sale scheme.
Mr Abhisit has been criticised as soft when it comes to corruption, while tension about alleged irregularities behind the government's rice bidding process is perennial.
The observers believe the scandal could be traced to government figures if investigators dig deeper and the coalition government could be dealt a fatal blow without Mr Veerasak as a scapegoat.
However, Mr Veerasak's dismissal is likely to hurt the credibility of coalition partner Bhumjaithai Party. Mr Veerasak and Ms Porntiva belong to the party faction led by Somsak Thepsuthin.
Mr Veerasak was approached by Mr Somsak after he lost a senate election in Ubon Ratchathani several years ago. He made his debut in politics by working as an adviser to then commerce minister Banyin Tangpakorn. After the Constitution Court ruled to disband the Matchimathipataya Party two years ago, Mr Somsak switched sides and supported Mr Abhisit as prime minister.
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