Court accepts Bt14-bn King Power case

[snoop1130]

Court accepts Bt14-bn King Power case

By The Nation

 

 

The Central Criminal Court for Corruption and Misconduct Cases has scheduled its first hearing on alleged wrongdoing in the King Power duty free contract in February next year.

 

Senior officials of state-owned Airports of Thailand (AOT) which enforced the contract with privately-owned King Power, are accused of favouring the private firm to the tune of Bt14 billion over several years.

 

 Charnchai Isarasenaluk, former vice chairman of the National Reform Steering Assembly, filed the lawsuit against a total of 18 AOT and King Power executives who allegedly abused their power and conspired to cause damage to the state.

 

 The plaintiff said King Power, the duty-free shop concessionaire at Suvarnbhumi international airport, was allowed to reduce its payment to the government from 15 per cent of its sales to only 3 per cent of sales.

 

 This was in violation of the contract signed between AOT and King Power, resulting in damages estimated to be more than Bt14 billion.

 

 The court said on Monday it had accepted the case for trial and would hold the first plaintiff hearing on February 12, 2018.

 

 Meanwhile, King Power has filed multiple libel lawsuits against Charncha, with one of the cases due for a hearing in January next year.

 

Source: http://www.nationmultimedia.com/detail/business/30331519

 

-- © Copyright The Nation 2017-11-13

[observer90210]

The sun is rising again in the East, as there are still honest people with power of influence.

 

And perhaps,  with full respect, it is not about time to consider softening the libel laws as they much to often used as shields in questionnable issues ?

Edited November 13, 2017 by observer90210

[darksidedog]

Ah yes! King Power. The same firm that brought you airport rip offs and blackmail by giving you free gifts at the checkout that you were subsequently arrested for stealing as you left the store and Oh!, your cashier has vanished and the gift wasn't on your receipt. Pay up or miss your flight. Paragon of Thai dishonest virtue. That they are filing libel suits against their accuser, is both a condemnation of the inadequacies of Thai law and to my mind an admission of guilt. Standard procedure here. Scare your accuser away by bringing multiple spurious lawsuits. I hope they get nailed, but with their money, unlikely.

[Psimbo]

Charged so instantly  his the chargee with libel writs- about time this ludicrous situation was put to rest.

[tso310]

Problems ahead for Leicester City ?

[Jonmarleesco]

14 hours ago, snoop1130 said:

This was in violation of the contract signed between AOT and King Power, resulting in damages estimated to be more than Bt14 billion.

That's monopolies for you.

[AlQaholic]

14bn??? that's strange, as I have never shopped there, nor do I know of anyone who has purchased anything at King Power. You can buy the same crap on the streets for half the price or less.

[PerkinsCuthbert]

There are many steps for the expat in learning to lead an economical life in Thailand. Among them is never going within the precincts of a King Power outlet.

[madmitch]

37 minutes ago, AlQaholic said:

14bn??? that's strange, as I have never shopped there, nor do I know of anyone who has purchased anything at King Power. You can buy the same crap on the streets for half the price or less.

You might know that. I might know that. But how about the millions of tourists that pass through Thailand's airports every year? That term "Duty Free" is like a magnet! And don't forget they have a monopoly, even controlling the rental of those units they don't run themselves!

[champers]

Am I right in thinking that their contract is due to expire and someone else (who?) is due to take their place? 

This looks like a settling of accounts, or a dispute over divvying up the spoils, if you are prone to cynicism.

[Grusa]

I would have thought that using the name King Power contravenes lese majeste laws, unless HM owns it ? I understand he does not.

[Thian]

the VAT is 7% and the King Power had to pay 15! % to the state.

 

So how could this shop ever be cheaper than the malls with that 15%?

[steelepulse]

King Power, payola.....Never.

[halloween]

25 minutes ago, Thian said:

the VAT is 7% and the King Power had to pay 15! % to the state.

 

So how could this shop ever be cheaper than the malls with that 15%?

Just guessing, but they also don't pay import duty/tariffs. Or a few other costs associated with retailing, such as rent, A/C, security, car parking...............

[Chris Lawrence]

Who are the 18 executives?

• Sqn.Ldr. PRAJAK SAJJASOPHON
• Pol.Lt.Gen. MANOO MEKMOK
• GEN. CHAICHAN CHANGMONGKO
• GEN. CHATUDOM TITTHASIRI
• AM PRAKIT SKUNASINGHA
• Then there are 6 military types in the Senior Executive ranks of AOT.

“This emblem signifies the royal warrant for the company as an enterprise that has been steadfastly operating with transparency, virtue and trustworthiness, and one that has shown loyalty to the royal household and His Majesty King Bhumibol Adulyadej.

“In appreciation, this Royal Garuda emblem is granted to the company as an encouragement to maintain their status as an excellent example of a successful and supportive business in Thailand for many years to come.”

In addition to the ruling junta, the wealthy businessman has managed to build good ties with both politicians and military figures in powerful posts. And thanks to these cosy relationships, his company has managed to win coveted deals from influential people at key times, including a concession to operate duty-free shops at major airports that has grown into a Bt68-billion-a-year business.

In 1995, King Power won a concession to operate duty-free shops at Don Mueang Airport, which was then Bangkok’s main international airport. 

Two years later, the government of Chavalit Yongchaiyudh granted the company the sole right to manage a duty-free business at the World Trade Centre in downtown Bangkok for 10 years. The business had previously been managed by the Tourism Authority of Thailand. That was an important turning point for Vichai to become the country’s “king of duty-free business”. Nation 2016

 

So this has been going on since 2007. King appears to have the first blow by getting in with the first court time. Maybe a storm in a teacup?

 

King power is going online, have bought a stake in Air Asia plus more business in the pipeline. Their 2014 turnover was $1.8 billion. They are a golden egg layer and play the field. Not a company that would like to be upset too much. I bet cases of very good whisky hit the mark at celebration times?

[Chris Lawrence]

 

14 minutes ago, halloween said:

Just guessing, but they also don't pay import duty/tariffs. Or a few other costs associated with retailing, such as rent, A/C, security, car parking...............

So you have got a copy of the lease agreement in front of you, Hal?

 

When the Queen Victoria building was commissioned in Sydney quite a few years back, the Directors hand picked a few of the tenants, mainly in the high turnover cash areas. These shops ran two tills and gave over sizable amounts to the directors or anyone who had control of where they were positioned in the complex.

 

What you are talking about are recoverable outgoings, which can be negotiated within a lease agreement. If you don't understand the process you are just trying to flame the situation or just being a troll.