Court orders BMTA to pay Bestrin Group and affiliates 1,159 million baht in compensation for illegal cancellation of bus contract

[Srikcir]

The court is correct in its decision. Bestlin sold its buses to BMTA in compliance with its bid but its importer did not pay any custom tax. Payment of any custom tax was outside of the bid but  BMTA still cancelled the contract for nonpayment. It incorrectly breached the contract and Bestlin should be compensated.

 

But there's some misinformation posted, so I offer the following limited information:

• BMTA put off its scheduled signing of the 489 NGV buses with JVCC Co. following a petition to petition to PM Prayut by Bestlin Group. http://englishnews.thaipbs.or.th/ngv-bus-deal-signing-put-off-after-a-petition-to-pm/
• The Bestlin Group sues Pol General Aek Angsananont, in his capacity as chairman of the Bangkok Mass Transit Authority (BMTA) board, and another eight defendants for allegedly rigging bids for the purchase and maintenance of 489 NGV-fuelled buses.

  http://www.nationmultimedia.com/national/BMTA-faces-lawsuit-alleging-collusion-over-NGV-bus-30266637.html

• BMTA took delivery of all the buses by January 25, 2017 with all 489 buses registered with BMTA.

  http://englishnews.thaipbs.or.th/test-run-controversial-ngv-buses-satisfactory/

• Importer of the controversial NGV buses, Super Zara Company, filed criminal charges of abuse of power against Customs Department chief Kulis Sombatsiri and six other customs officials. 

  http://englishnews.thaipbs.or.th/seven-customs-officials-sued-abuse-power-importer-ngv-buses/

• Prayut sacked BMTA Director Surachai Iamvachirasakul for reasons that Transport Minister Arkhom Termpittayapaisit said stemmed from BMTA's procurement of a fleet of 489 NGV buses from the Bestlin Group. http://englishnews.thaipbs.or.th/bmta-director-axed/

• Super Zara, importer of NGV buses paid the import 40% tax for 389 buses but still maintains that they were assembled in Malaysia with local content. But it refuses to pay the import tax for the first 100 buses that were delivered claiming they were assembled in Malaysia and eligible to import tax exemption under the Asean Free Trade Agreement.  http://englishnews.thaipbs.or.th/customs-take-case-public-prosecutors-importer-ngv-buses/

There may be more litigation to follow but maybe the court ordered compensation will mitigate both Customs and Super Zara positions.

[robblok]

4 hours ago, Srikcir said:

The court is correct in its decision. Bestlin sold its buses to BMTA in compliance with its bid but its importer did not pay any custom tax. Payment of any custom tax was outside of the bid but  BMTA still cancelled the contract for nonpayment. It incorrectly breached the contract and Bestlin should be compensated.

 

But there's some misinformation posted, so I offer the following limited information:

• BMTA put off its scheduled signing of the 489 NGV buses with JVCC Co. following a petition to petition to PM Prayut by Bestlin Group. http://englishnews.thaipbs.or.th/ngv-bus-deal-signing-put-off-after-a-petition-to-pm/
• The Bestlin Group sues Pol General Aek Angsananont, in his capacity as chairman of the Bangkok Mass Transit Authority (BMTA) board, and another eight defendants for allegedly rigging bids for the purchase and maintenance of 489 NGV-fuelled buses.

  http://www.nationmultimedia.com/national/BMTA-faces-lawsuit-alleging-collusion-over-NGV-bus-30266637.html

   

• BMTA took delivery of all the buses by January 25, 2017 with all 489 buses registered with BMTA.

  http://englishnews.thaipbs.or.th/test-run-controversial-ngv-buses-satisfactory/

• Importer of the controversial NGV buses, Super Zara Company, filed criminal charges of abuse of power against Customs Department chief Kulis Sombatsiri and six other customs officials. 

  http://englishnews.thaipbs.or.th/seven-customs-officials-sued-abuse-power-importer-ngv-buses/

• Prayut sacked BMTA Director Surachai Iamvachirasakul for reasons that Transport Minister Arkhom Termpittayapaisit said stemmed from BMTA's procurement of a fleet of 489 NGV buses from the Bestlin Group. http://englishnews.thaipbs.or.th/bmta-director-axed/

• Super Zara, importer of NGV buses paid the import 40% tax for 389 buses but still maintains that they were assembled in Malaysia with local content. But it refuses to pay the import tax for the first 100 buses that were delivered claiming they were assembled in Malaysia and eligible to import tax exemption under the Asean Free Trade Agreement.  http://englishnews.thaipbs.or.th/customs-take-case-public-prosecutors-importer-ngv-buses/

There may be more litigation to follow but maybe the court ordered compensation will mitigate both Customs and Super Zara positions.

You may be right about the tax issue being an separate issue from the contract between BMTA and Bestlin.  Though if Bestlin did a runner the BMTA might have been liable. But if what you said is true that they paid taxes on the other buses then the BMTA should have accepted those. 

 

Its interesting to say the least there were better ways to deal with the tax issue then to cancel the whole order. 

 

Do you know what is happening with the buses now.. and how they are stored ? (think fire trucks)