Rice sector: Cheating secrets revealed

The difficult to see tricks used by rice millers, warehouses & exporters to cheat the government & small farmers.

A worker carries a sack of rice in a warehouse (Photo: AFP Noel Celis).

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DSI lifts lid on rice pledge fraud tactics

Police say PWO officials involved in corruption
7/08/2012
King-Oua Laohong & Phusadee Arunmas

The Department of Special Investigation (DSI) has exposed a raft of fraudulent methods used by rice mill operators to defraud the government's rice pledging scheme...

....cheating in the crop pledging programme exists in many forms and farmers are taken advantage of by rice millers during the process to weigh rice and measure moisture content.

The methods employed to defraud the rice pledging scheme include: 

- Rigging weight scales and moisture-measuring scales when evaluating farmers' paddy. To get the maximum 15,000 baht/tonne, the paddy must hold no more than 15% moisture content. More moisture content result in less pledging cash.

If the measuring scales are rigged to show a higher moisture content, this is deducted from the paddy weight and farmers do not get the full pledging price.

- Issuing fake bai pratuan documents, a document which farmers present at a bank to get cash for rice pledging.

- Issuing fake weight measurement certificates...

- If the process of paying the full 15,000 baht/tonne to farmers is slow, rice millers offer to pay 10,000 baht to farmers who receive the money immediately instead of having to wait to get the full 15,000 baht.

- Rice millers change the moisture content level indicated in the bai pratuan so they will profit from the difference...

- Latest checks have found that more than 20% of paddy due for export remains in the country and the paddy is secretly sold through auctions to release it from the stockpiles. Some exporters are also favoured over others, which could be deemed as price collusion," ....

- Some rice millers and warehouse operators try to use old stocks of degraded paddy, normally used in animal feed, in the pledging scheme. This give rice millers and warehouse operators the opportunity to make a profit.

- Some traders smuggle in paddy from neighbouring countries and register it in the pledging scheme...

(Source: Bangkok Post, DSI lifts lid on rice pledge fraud tactics, Police say PWO officials involved in corruption, 7/08/2012, King-Oua Laohong & Phusadee Arunmas, link) 


Rice Sector Vocabulary

the government's rice pledging scheme - the system to protect farmers from low rice prices (they could not know about when planting)
crop pledging programme - Same as above

scheme - a plan that is developed by a government or large organisation in order to provide a particular service for people แผนการ โครงการ
pledge - to promise to do something สัญญา

corruption - (See Wikipedia on bribery, political corruption)

fraud (noun) - the crime of making money by lieing to, tricking or cheating people การโกง การตุ้มตุ๋น การปลอมแปลง (See Wikipedia)
defraud (verb) - to get money illegally by tricking

fraudulent (adjective) - doing something with the goal of tricking someone, especially illegally การฉ้อโกง
fraudulent methods

tactics - particular methods for achieving something กลเม็ดเด็ดพราย วิธีการ ไม้เด็ด
fraud tactics
pledge fraud tactics

DSI lifts lid on rice pledge fraud tactics. Police say PWO officials involved in corruption

exposed - made known; uncovered เปิดเยต่อ
a raft of... - a large number of ... 
exposed a raft of fraudulent methods

operators - businesses doing this business
rice mill operators

defraud the government's rice pledging scheme

The Department of Special Investigation (DSI) has exposed a raft of fraudulent methods used by rice mill operators to defraud the government's rice pledging scheme...

cheat - to not obey the rules or treat others badly to gain some something for yourself  หลอกลวง, โกง

advantage - a condition giving a greater chance of success ความได้เปรียบ
take advantage of - cheat someone for personal gain
farmers are taken advantage of by rice millers

process - a series of actions that you take in order to achieve a result แนวทางปฏิบัติ, กระบวน, วิธีการ
the process to weigh rice

moisture - a small amount of water in the air or in a substance ความชื้น
content - what is inside something; the parts of a good เนื้อหา

moisture content - the amount of moisture in rice
measure moisture content

....said cheating in the crop pledging programme exists in many forms and farmers are taken advantage of by rice millers during the process to weigh rice and measure moisture content.

employed - use ใช้
method - a way of doing something วิธี
methods employed to defraud

The methods employed to defraud the rice pledging scheme include  

rig - cheat by arranging things so that you gain or win (for sure, no matter what happens) (example: rigged boxing match)
rigging weight scales

evaluating - thinking carefully about something before making a judgment about its value, importance or quality
paddy - rice after it has been harvested from the field  ข้าวเปลือก

maximum - the most possible ที่สูงสุด ที่มากที่สุด
get the maximum - get the most possible (get as much as you can get, get the greatest amount possible)

cash - money เงินสด

- Rigging weight scales and moisture-measuring scales when evaluating farmers' paddy. To get the maximum 15,000 baht/tonne, the paddy must hold no more than 15% moisture content. More moisture content result in less pledging cash. If the measuring scales are rigged to show a higher moisture content, this is deducted from the paddy weight and farmers do not get the full pledging price.

fake - not the real thing (made to look like the real thing in order to deceive people) ปลอม ปลอมแปลง
fake certificates
issuing fake certificates

document - a piece of paper or a set of papers containing official information เอกสาร
immediately - happening right after something else with no delay; right away ทันที

profit - money that you make from selling goods and services after all your costs have been paid กำไร
profit from the difference

- Issuing fake bai pratuan documents, a document which farmers present at a bank to get cash for rice pledging. Issuing fake weight measurement certificates... If the process of paying the full 15,000 baht/tonne to farmers is slow, rice millers offer to pay 10,000 baht to farmers who receive the money immediately instead of having to wait to get the full 15,000 baht  Rice millers change the moisture content level indicated in the bai pratuan so they will profit from the difference...

remains in the country - still in the country, did not leave the country yet

auction - a public sale in which people offer a price for something and it is sold to the person who offers highest price การขายโดยการประมูล
sold through auctions

release - to allow to go free ปล่อย
stockpiles - large amounts of something stored for future use กองสินค้าในโกดัง
release from stockpiles

collusion - secretly working together for an illegal or bad purpose การสมรู้ร่วมคิด
price collusion - when sellers of some good join together to keep price high (usually illegal)

deemed - considered เห็นว่า ถือว่า
deemed as price collusion

- Latest checks have found that more than 20% of paddy due for export remains in the country and the paddy is secretly sold through auctions to release it from the stockpiles. Some exporters are also favoured over others, which could be deemed as price collusion," ....

warehouse - a large building for storing things โกดังสินค้า, คลังสินค้า, โรงพัสดุ
warehouse operators

stocks - amounts stored for future use
old stocks - stocks stored for a long time (quality loss over time)

degraded - became low quality
degraded paddy
old stocks of degraded paddy

animal feed - food for animals

opportunity - a situation when it is possible to do something that you want to do (See glossary)
opportunity to make a profit

- Some rice millers and warehouse operators try to use old stocks of degraded paddy, normally used in animal feed, in the pledging scheme. This give rice millers and warehouse operators the opportunity to make a profit.

traders - people or companies that buy and sell things for a profit, as a business

smuggle - to take things or people to or from a place secretly and often illegally, bring goods into a country illegally ลักลอบนำเข้า (See Wikipedia)
smuggle in paddy from neighbouring countries

register - make an official record of something with the government; have name put on an official list (and receive permission to do something like vote or marry) ลงทะเบียน ขึ้นทะเบียน (ขอใบอนุญาต)
register paddy in the pledging scheme

- Some traders smuggle in paddy from neighbouring countries and register it in the pledging scheme, the officer said...