What's new in business news: September 17, 2013

China rice contract for 1.2 million tonnes questioned, Malaysia to build anti-smuggling wall along Thai river border & SEC fines executive B1.6m for insider trading.

AGRICULTURE

China rice contract for 1.2 million tonnes questioned

16/09/2013

The commerce minister claims that a Chinese state-owned enterprise (Beidahuang) will definitely purchase 1.2 million tonnes of white rice from the Thai government’s stockpile at a good price within the next two weeks. The buyer is also said to be interested in buying 200,000 tonnes of rubber. 

A Reuters news article on Sept 12 claims that "talks on a government-to-government deal had been taking place with Thailand for some time but nothing had been settled, but also noted that "it is impossible for China to import that much rice as China doesn't need that much." 

Democrat Party leader Korn Chatikavanij questioned the authenticity of the deal and demanded that government show the public the actual contract. The fact that the government is planning to raise the borrowing limit to pay farmers for rice instead of paying with the proceeds of rice sales is said to provide further evidence that is there is in fact no China rice contract. 

[Read full story here ]

BORDER TRADE 

Malaysia to build anti-smuggling wall along Thai river border

17/09/2013 

Thailand has expressed support for Malaysia's plan to build a wall and fence along the banks of the Kolok River, which separates  Malaysia's Kelantan state from Thailand's Narathiwat province. Thailand already had a similar plan to build a wall and fence along the border. 

The wall and fence would prevent the smuggling of drugs, firearms and other contraband items as well as preventing criminals escaping across the border. Residents living along the river would not be relocated, but all  illegal jetties would be destroyed and more policemen would be assigned to the area. The livelihoods of people living along the border would likely be affected by the proposed plan but the wall is necessary for national security both sides agree. 

[Read full story here ]

CORPORATE GOVERNANCE & INSIDE TRADING 

SEC fines executive B1.6m for insider trading

The Securities and Exchange Commission (SEC) has assessed 1.65 million baht in fines on three people for their use of inside information to buy stock shares.  

Mr Swake Srisuchart, chairman of the board of Power Line Engineering Plc (PLE) used non-public information concerning PLE to buy 5 million PLE shares in 2010 using other people's securities accounts .

Mr Swake had knowledge of the company's first-quarter operating profit of 184.10 million baht, a marked improvement on a year-earlier net loss of 223.23 million baht and a prior-quarter net loss of 403.75 million baht (due to cash received from written-off foreign accounts receivable and disposal of non-operating land).  

Two others in the case were found to have aided and abetted Mr Swake's wrongdoing. All three agreed to a settlement procedure and ended up paying fines of 985,849.53 baht for Mr Swake and 333,333.33 baht each for Ms Usavadee and Mr Perayuth.

[Read full story here ]