Thai Govt To Appeal Klong Dan Verdict

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Govt to appeal Klong Dan verdict

By The Nation

A protracted appeal process is soon to begin in the already years-long Klong Dan water-treatment plant row.

Government ministries and a department are appealing against a decision by arbitrators requiring Bt9-billion in government compensation to be paid to a contractor over legal conflicts in the construction of the huge water-treatment project in Samut Prakan province.

Relevant agencies have been approving the appeal process.

The final pre-appeal approval came from the Finance Ministry, which echoed the position of the Natural Resources and Environment Ministry and the Pollution Control Department, that paying the huge fine and compensation to the contractor would violate public moral principles, PCD director-general Suphat Wangwongwatthana said yesterday.

The right to appeal will expire after a 90-day period next month, and the Office of the Attorney-General, which is tasked with appealing against the arbitrators' decision, has been informed of the final decision by both ministries and the department, he said. The appeal process is expected to take about one year, after next month.

The huge fine has been widely dubbed "stupidity fees" in press reports and attributed to preconditions agreed upon by corrupt politicians, officials and contractors as a way to escape losses by the contractors, in case the project cannot be completed due either to corruption being detected, inefficiency or technological glitches.

The project, the largest waste-water project in Southeast Asia, was initiated and approved by veteran politician Vatana Asavahame, who has been sentenced in absentia to 10 years' imprisonment for his corruption and illegal benefits from the project.

The Northwest Company and the NVPSKG Joint Venture, which constructed the project, are demanding huge compensatory fines from the PCD after the project was halted due to legal conflicts and criminal prosecutions.

The arbitrators' decision, that the PCD should pay a total of about Bt9 billion to the contractors, was reached on January 12 and was empowered by conditions in the project contracts.

However, the Natural Resources and Environment Ministry and the PCD dispute the decision, saying it violates the contract conditions.

-- The Nation 2011-03-22