Thai Ministry Refuses To Pay 'Stupidity' Fees Over Khlong Dan Project

[webfact]

Ministry refuses to pay 'stupidity' fees over Khlong Dan project

By The Nation

Permanent Secretary for Natural Resources and Environment, Chote Trachu, said yesterday that the Pollution Control Department wouldn't pay Bt9 billion in "stupidity fees" to a private company over the Bt23billion Khlong Dan Wastewater Management Project in Samut Prakarn and would instead counter sue NVPSKG Joint Venture.

The Arbitration Committee on January 12 ordered the department to pay the joint venture damages as well as 7.5 per cent in interest calculated from February 28, 2003, which amounts to Bt9 billion. Chote said the fees were "stupid" because the project contract was invalid right from the beginning, adding that the country's money should not be spent on things like this. The department also issued a letter objecting to the Arbitration Committee's decision and sent related documents to the Permanent Secretary for Finance on February 2 - within 90 days as allowed by law.

The department has asked the Office of AttorneyGeneral for legal guidelines because it aims to file a civil lawsuit saying that the Arbitration Committee's ruling went against the criminal court's verdict that corruption existed in the project and the involved politician and state officials had been punished. The department will also file a lawsuit against NVPSKG Joint Venture at the Civil Court seeking billions of baht in compensation because the project had unnecessarily been put on hold for a decade.

The department had sought Bt12 million from the Central Budget to carry out a sixmonth operation to assess damages and seek rehabilitation solutions, he said, adding that the assessment would be used in the lawsuit.

-- The Nation 2011-02-16

[tragickingdom]

Another example of the fact that nobody should do business in Thailand without being fully covered with bank guarantees and other support. Even Arbitration Committees who are probably mentioned in the contracts are not take serious when the vested elite are the party who has to pay. It is not the first time this happens and certainly not the last. You have more rights in Zimbabwe as a foreigner than in Thailand.

[cheeryble]

as well as 7.5 per cent in interest calculated from February 28, 2003, which amounts to Bt9 billion.

Wow that's a really cheap loan and they're complaining!

[jimbeam1]

We are doing well today. We have secret budgets now stupidity fees. I think the Nation is on a roll.

jb1

[Payboy]

We are doing well today. We have secret budgets now stupidity fees. I think the Nation is on a roll.

jb1

Something tells me there's more coming tomorrow and the day after and after.....

[Phatcharanan]

You have more rights in Zimbabwe as a foreigner than in Thailand.

Thats strange. I spent two years in Hahare and didn't notice any rights there that were far greater than Thailand. Guess I must have missed all the nationalisations of foreign companies, land-grabs of farms etc.

[robenroute]

You have more rights in Zimbabwe as a foreigner than in Thailand.

Thats strange. I spent two years in Hahare and didn't notice any rights there that were far greater than Thailand. Guess I must have missed all the nationalisations of foreign companies, land-grabs of farms etc.

I think he/she meant it in a sarcastic way... But yes, you're right, that wasn't mentioned explicitly.;-)

[Bagwan]

If I remember correctly the contract became invalid because a UK company pulled out, probably because they knew the whole thing was dodgy. So the Thai Government didn't know about this? If they didn't then they are guilty of a criminally stupid lack of supervision. If they did then they acquiesced in what followed and should pick up the tab.

I can't recall any Thai official or politician being brought to book over this colossal lash up and if this has been brought about I would be obliged if someone who has taken a closer interest than I appraised me of any such action.

If I were a honcho of the Dutch company offering advice and/or expertise re the BKK flooding problems I should insist on getting the money up front.