Top court denies request to reopen Hopewell case

[snoop1130]

Top court denies request to reopen Hopewell case

By The Nation

 

 

The Supreme Administrative Court on Wednesday (July 22) upheld the Central Administrative Court’s decision to decline the requests from the State Railway of Thailand (SRT) and the Transport Ministry to reopen the case of Hong Kong-based Hopewell Company.

 

In March last year, the Supreme Court enforced the arbitration committee’s decision to have both parties pay about Bt24 billion in compensation to Hopewell (Thailand) for terminating the company’s contract in 1997 to build an elevated road and train system in Bangkok.

 

Later, both SRT and the ministry called on the Central Court to re-try the case, saying they had new evidence.

 

This long-running saga began in 1990, when the Chatichai Choonhavan government signed a 30-year concession contract with the private firm to build a Bt80-billion elevated road and train system in the capital to ease traffic congestion.

 

Source: https://www.nationthailand.com/news/30391762?utm_source=category&utm_medium=internal_referral

 

-- © Copyright The Nation Thailand 2020-07-22

 

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[blackcab]

That appears to be the end of the road for the legal process within Thailand.

 

I wonder if the government will pay out now.

[Tropicalevo]

3 hours ago, blackcab said:

That appears to be the end of the road for the legal process within Thailand.

 

I wonder if the government will pay out now.

Unlikely methinks.

[Grumpy John]

"Later, both SRT and the ministry called on the Central Court to re-try the case, saying they had new evidence."  Really!  I think it is just another ploy to spin out the none payment period by another decade.  

[Srikcir]

I'm sure it pained the Court to rule against its traditional benefactors. But a ruling against Hopewell would have ended foreign bidders in Thai projects. Satisfying government egos apparently wasn't worth the cost.

Even then future foreign bidders should require thai contracts to rely SOLELY on mandatory arbitration to settle claims and specifically disallow subsequent appeals to the Thai judiciary. In effect follow the same set of rules for contract disputes that apply to free trade agreements, ie., the Thailand-Australia Free Trade Agreement. 

[sharecropper]

I'll be interested to see how the Kingsgate international arbitration goes too. Both Hopewell and Kingsgate reflect badly in terms of foreign companies wanting to invest and do business in Thailand, under the protection of even the most rudimentary, Wild West law.

[robblok]

3 hours ago, Grumpy John said:

"Later, both SRT and the ministry called on the Central Court to re-try the case, saying they had new evidence."  Really!  I think it is just another ploy to spin out the none payment period by another decade.  

Maybe Grumpy you should read again.

 

This was after the March verdict that they called to re try the case.

 

The supreme court has told them no.

 

Its done now they can't do anything else anymore. 

 

I must say the BKK post article is a lot clearer. There it even reports the supreme courts its reasoning in denying the new claim.

 

The court ruled, however, that these were mistakes committed by the government which should have checked the facts more carefully before signing the contract with Hopewell (Thailand). They could never be cited as a reason to request a retrial, it said.

Edited July 23, 2020 by robblok

[Sydebolle]

The German government had some open bills as a German company went belly-up over this whole mess. The German law sees the protection of labour as a top priority and paid unpaid/overdue wages to German employees (in Thailand) and then the German government started hunting for the money. 

They had to impound an aircraft of the Thai air force until the Abhisit government finally paid the (relatively ridiculous) amount of something like +/- EUR 30 million; most of it legal fees and compound interests. 

Irrespective of whatever governmental contracts are signed, paid for and then shelved/forgotten, it always boils down to the same - corruption - which has haunted this country for many decades already. And yes, absolute power corrupts absolutely - explains submarines and the recent acquisition of a VIP-aircraft apart from all those other absolutely non-essentials - except of course lining pockets all the way to the bank! 

Hopewell wants money and the State Railways of Thailand (SRT) does not want to pay; the case is being heard at the courts. The SRT and the court are in the same corner of the pit - go figure! 

[robblok]

7 minutes ago, Sydebolle said:

The German government had some open bills as a German company went belly-up over this whole mess. The German law sees the protection of labour as a top priority and paid unpaid/overdue wages to German employees (in Thailand) and then the German government started hunting for the money. 

They had to impound an aircraft of the Thai air force until the Abhisit government finally paid the (relatively ridiculous) amount of something like +/- EUR 30 million; most of it legal fees and compound interests. 

Irrespective of whatever governmental contracts are signed, paid for and then shelved/forgotten, it always boils down to the same - corruption - which has haunted this country for many decades already. And yes, absolute power corrupts absolutely - explains submarines and the recent acquisition of a VIP-aircraft apart from all those other absolutely non-essentials - except of course lining pockets all the way to the bank! 

Hopewell wants money and the State Railways of Thailand (SRT) does not want to pay; the case is being heard at the courts. The SRT and the court are in the same corner of the pit - go figure! 

But the courts have now said.. this is the end of the line you have to pay. They said it before but then the government made one last ditch try but it was rejected. So now the SRT will have to pay. Not a good time for Thailand as this will add to the already huge deficit they have. 

 

But at least it shows the courts are not totally under government control. If they were then no foreign investment would ever come. 

[Dogmatix]

3 hours ago, Srikcir said:

I'm sure it pained the Court to rule against its traditional benefactors. But a ruling against Hopewell would have ended foreign bidders in Thai projects. Satisfying government egos apparently wasn't worth the cost.

Even then future foreign bidders should require thai contracts to rely SOLELY on mandatory arbitration to settle claims and specifically disallow subsequent appeals to the Thai judiciary. In effect follow the same set of rules for contract disputes that apply to free trade agreements, ie., the Thailand-Australia Free Trade Agreement. 

 

You are absolutely right but I wonder how many foreign players have an appetite to bid for large Thai government related projects after all that has happened to Hopewell, Kingsgate, Kumagai Gumi, Walter Bau. Even if they win, it takes years and years to get justice.

 

The Hopewell case stems from massive corruption money accepted by a Thai minister for a project that was clearly unviable at the time it was attempted but, nevertheless Hopewell initially tried its best to build it.  The contract was only a few pages long and the minister, Mr Montree, was so greedy that he cut out the bureaucrats below him and, most importantly, the powerful State Railways of Thailand people.  SRT then made it its business to block the project at every turn. The minister lost power in a coup soon after the contract was signed and died of HIV a couple of years later.  Basically the case stems from Thai government corruption and incompetence.  The contract should never have been signed but, since it was, the Thai government has to take responsibility. The only beneficiaries have been the heirs of the minister who pocketed the massive bribe from Hopewell.

[Misterwhisper]

It appears Hopewell has gone Hopeless after all.

Edited July 23, 2020 by Misterwhisper

[newatthis]

5 hours ago, sharecropper said:

I'll be interested to see how the Kingsgate international arbitration goes too. Both Hopewell and Kingsgate reflect badly in terms of foreign companies wanting to invest and do business in Thailand, under the protection of even the most rudimentary, Wild West law.

And any foreign creditor of THAI would be seriously considering the honesty and integrity of any promise made by THAI and this government.