GENERAL SUPERVISION OF LOCAL ADMINISTRATIVE ORGANIZATIONS CASE STUDY: LOANING MONEY

Abstract

The objectives of this study are to study the concept, the theory, the derivation and the necessity
of the independence in decentralization to local general administrative organizations, case study: supervision
of loaning money of local general administrative organizations, problem issue of the independence in
decentralization to local general administrative organizations, case study: supervision of loaning money
of local administrative organizations and the statute of ministry of interior. To suggest that the local
administrative organizations should be able to sustain the independence in decentralization without the
intervention from the federal government especially in loaning money by establish the specific laws. The
scopes of this study are the independence of loaning money from local government organizations under
supervision, loaning laws and regulation of the local government organizations. This study emphasizes in
documentary research by studies and analyzes information from academic work, thesis, research, treatise or
various book from Thailand and overseas, conference report, seminar report, and the implicated articles on
the internet.
From the study found that loaning from the local general government organizations such as
Provincial Administration Organization and Municipality Office have been supervised by Federal government.
These local government organizations need to be considered by the Provincial Committee. After
the consideration they need governor to reconsider it. If the loaning amount is greater than 50 million baht,
the governor need the Ministry of Interior to approve it. This working model of the Federal government have
a lot of procedure and makes the local government organization dependence on decentralization. However,
the supervision still necessary in order to control and prevent damage to the local government organization.
There should be the reducing of the supervision for the purpose of the independence of the local

government organization. About the sub-district government loaning, there are the laws that allow the sub-
district government to take on loan, but the sub-district government cannot take on loan because there is

no Ministry of Interior order that indicate formula, condition and method about taking on loan of
the sub-district government. Although the sub-district government have been raised their status into
sub-district Municipality that make them be able to be loaning the money. This is just solving the symptoms
not the root cause. Therefore, there should be the rules that the local government organizations could loan
money but not more than fifty million baht