Germany Seizes Thai Crown Prince's Aircraft In Debt Dispute

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Thai Govt to Sue German Contractor over Royal Plane Seizure

The outgoing PM denies that the German Court impounded another plane belonging to His Royal Highness Crown Prince Maha Vajiralongkorn.

He said that Thailand's attorney-general will file a lawsuit against Walter Bau, charging them with illegal seizure.

Outgoing PM Abhisit Vejjajiva denied that a German Court has grounded a second royal flight after another Boeing 737 landed at the Munich airport.

Attorney-General, Julasing Wasantasing revealed that the Thai delegation is preparing to file an appeal with the court as well as file charges of illegal seizure against Walter Bau.

The Thai government insists that the seized airplane belongs to His Royal Highness Crown Prince Maha Vajiralongkorn, not the state.

The attorney-general said he will discuss the issue with the interim prime minister before proceeding with the case.

Meanwhile, Abhisit has ensured the public that the case would not affect other Thai airplanes that land at Munich Airport.

-- Tan Network 2011-07-26

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German Embassy Presses Thai Govt to Pay

Germany has issued a statement saying that Thailand should pay Walter Bau according to the International Court court's verdict and claims the court would not reconsider the case.

On July 22, the Germany Embassy issued an official announcement, requesting that Thailand comply with the International Court's ruling by paying 36 million Euro to a German company over the long-running dispute between Thailand and the now-insolvent firm, Walter Bau over the Don Muang Tollway.

The embassy claims that if Thailand complies with the court's order, it will help increase Thailand's credibility, which could draw foreign investment.

In addition, the two countries' relationship would get back on the right track.

It clarifies that the next trial, at a court in New York, would not change the final verdict, but it will determine whether the case can be enforced in the United States.

On July 20, the German Court ordered Thailand to pay a surety of 20 million euros for the return of the Crown's Boeing 737, which has been impounded in Munich.

However, the Thai government has refused to pay.

A Thai delegation has appealed the decision and asked the court to reconsider the case in August.

Recently, a Boeing 737 was impounded by a German Court.

The plaintiff, Walter Bau, insists that the Thai government ignored the Court's ruling for almost two years.

-- Tan Network 2011-07-26

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GERMANY

German embassy demands payment of debt

By The Nation

In a surprise move, the Germany Embassy in Bangkok issued a statement on July 22 demanding that the Thai government repay the debt of 30million Euro owing in a longtime commercial dispute that resulted in the recent seizure of a Thai Boeing 737 in Germany.

The statement, written in Thai and German, said that the embassy truly hoped that the Thai government would make a quick decision to repay the debt, otherwise the matter would affect German investment in Thailand.

German insolvency officials seized a Boeing 737 used by the Crown Prince while it was parked at Munich Airport in southern Germany on July 12. The move was aimed at forcing the Thai government to repay a debt in a commercial dispute dating back more than two decades between Thailand and Walter Bau, a nowinsolvent German construction firm that was building a road link to Bangkok's Don Mueang airport.

The embassy further referred to the international arbitration tribunal's decision in 2009, which issued an award against Thailand to compensate damages to Walter Bau in the amount of around 30 million Euros plus interest and legal costs of around two million Euros.

"The embassy said the tribunal's ruling is considered final and the Thai government should immediately follow the tribunal's decision," the statement said.

The German embassy also referred to a German Court's ruling last week that the jet could be released upon payment of a 20million Euros deposit. The Thai government refused to pay, arguing that the jet was the personal property of the Crown Prince and not the government's.

Outgoing Prime Minister Abhisit Vejjajiva said yesterday that there were no grounds for a German insolvency administrator to impound a second jet used by HRH Crown Prince Maha Vajiralongkorn.

Abhisit was responding to a report on Sunday by the German tabloid Bild am Sonntag, which quoted insolvency administrator Werner Schneider as saying he was considering impounding a second jet used by the Crown Prince.

"We are considering further steps, including seizing the Prince's second plane," the paper quoted Schneider as saying. Bild am Sonntag said HRH the Crown Prince had flown the second plane to Munich to replace the first one.

AttorneyGeneral Chulasingh Vasantasing said he had already explained through a lawyer to the German insolvency administrator that the second jet was the Crown Prince's personal property and nothing to do with the government.

"As far as we know the plane has not been impounded," Chulasingh said.

Abhisit said the attorneygeneral was preparing information to take legal action against the Walter Bau company.

He said the attorneygeneral had notified him that almost 90 per cent of information concerning the company's exercise of rights in bad faith had been collected. A complaint will be separately lodged and will exclude the appeals process. It is expected that it will be completed this week.

-- The Nation 2011-07-26

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GERMANY

Jet conflict threatens ties

By The Nation

Thailand takes strong exception to German Embassy's 'interference'

A German court's seizure of a Thai Boeing 737 over a long-standing contractual dispute has developed into a diplomatic row between the two countries, threatening years of cordial relations.

Government Spokesman Panitan Wattanayagorn said yesterday that a press statement issued on Friday by the German Embassy in Thailand was an interference in the judicial process of the case.

The Thai Foreign Ministry will prepare facts and information to explain the situation to the German Foreign Ministry before ties between the countries become worse, he said.

"We were surprised at the statement, which expresses an opinion on an ongoing legal process in the German court," Panitan said.

"We have had good relations with Germany for a long time and we urge the German Foreign Ministry to beware of the fact that the current issue is very sensitive to Thai people," he said.

The Embassy's statement on Friday demanded that the Thai government fulfil the obligation to pay compensation to the German company, Walter Bau, over the conflict surrounding construction of the Don Muang Tollway project.

The statement, issued in both Thai and German, said the embassy truly hoped that the Thai government would make a quick decision to repay the debt; otherwise the matter would affect German investment in Thailand.

German insolvency officials seized the Boeing 737, which the Thai government says is owned by HRH Crown Prince Maha Vajiralongkorn, while it was parked at Munich Airport in southern Germany on July 12.

The move was aimed at forcing the Thai government to repay a debt in a commercial dispute dating back more than two decades between Thailand and Walter Bau, a now insolvent German construction firm that was building a road link to Bangkok's Don Mueang airport.

The embassy's statement referred to the decision of an international arbitration tribunal in 2009, which ruled against Thailand and awarded compensation to Walter Bau amounting to more than €30 million (Bt1.28 billion) plus interest and legal costs of around €2 million.

The tribunal's ruling was considered final and the Thai government should immediately follow the tribunal's decision, the statement said.

The German Embassy also referred to a German Court's ruling last week that the jet could be released upon payment of a €20 million deposit.

The Thai government refused to pay, arguing that the jet was the personal property of the Crown Prince, and was not owned by the government.

It said reports in the Thai media about ongoing proceedings in New York in this regard were misleading. The New York proceedings merely concern the question of whether a compulsory enforcement is also possible in the United States, and this will do nothing to alter Thailand's obligation to pay compensation, it said.

An early resolution of this case would restore the confidence of German and other foreign investors in Thailand and would send out a positive message about the further development of German-Thai relations, the embassy said.

In its statement, the embassy also provided background information. It said that Walter Bau AG was a shareholder in the consortium that constructed the Don Muang Tollway in Bangkok in the 1980s. Due to the repeated intervention of the Thai government regarding the contractual conditions for the investment, the consortium was not able to run the project profitably.

The German government repeatedly called on the Thai government to resolve the issue amicably by paying adequate compensation to the company.

However, no mutual agreement could be reached. In 2005, the insolvency administrator of Walter Bau initiated an arbitration procedure in accordance with the Thai-German bilateral treaty concerning the encouragement and reciprocal protection of investments.

On July 1, 2009, an international arbitration panel in Geneva issued a final judgement in favour of Walter Bau. The Thai government was ordered to pay €36 million in damages to the company for breaching its obligations set out in the contract. An appeal against the arbitration ruling is no longer possible. The Thai government has been asked repeatedly to comply with the judgement and pay the compensation, but no payment has been made, the embassy said.

The Thai Foreign Ministry's deputy spokesman Jesda Katavetin said his ministry would write to the German Foreign Ministry in a bid for better understanding on the matter, since both sides remained unclear on some points in the case.

"There might be some information that both sides interpret differently," he said. He declined to explain which issues remained unclear.

-- The Nation 2011-07-27

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JET SCANDAL

German embassy's move not appropriate

It was not appropriate for the German Embassy in Bangkok to have issued a statement demanding the Thai government repay 30 million Euros owing in a longtime commercial dispute that resulted in the recent seizure of a Thai Boeing 737 in Germany, Prime Minister Abhisit Vejjajiva said Wednesday.

The Thai Foreign Ministry was aware of the statement and had explained the matter to the German government, he said.

Abhisit was referring to the embassy's statement published on its website last week, which said that the Thai government needed to make a quick decision to repay the debt, otherwise the case would affect German investment in Thailand.

"It is improper for the German embassy to issue such a statement. It's true that it is common practise for a government to talk to another government in order to help solve problems with its private sector. However, the way the German embassy went about this is not appropriate," he said.

The German embassy's statement claimed the international arbitration tribunal's decision in 2009, which ordered Thailand to compensate damages to Walter Bau of around 30 million Euros, was considered final. However, Thailand argued otherwise, saying a New York court was still considering the case.

Abhisit said the legal case between the Thai government and Walter Bau has not yet been settled and is still under consideration in the court in New York.

The Thai foreign ministry has already informed the embassy that the case is not yet settled. "The administrative body of Germany should not have become involved in the matter," Abhisit said.

German insolvency officials seized a Boeing 737 used by the Crown Prince while it was parked at Munich Airport in southern Germany earlier this month.

The move was aimed at forcing the Thai government to repay a debt in a commercial dispute dating back more than two decades between Thailand and Walter Bau, a nowinsolvent German construction firm that was building a road link to Bangkok's Don Mueang airport.

The embassy further referred to the international arbitration tribunal's decision in 2009, which issued an award against Thailand to compensate damages to Walter Bau in the amount of around 30 million Euros plus interest and legal costs of around two million Euros.

-- The Nation 2011-07-27

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Jet spat: govt slams Berlin

By The Nation

Foreign Ministry lashes out at Germany's failure to accept 'clarifications' over seizure of Prince's Boeing

The Foreign Ministry yesterday issued a statement expressing disappointment over Berlin's actions relating to a German court's seizure of a Thai Boeing 737 used by HRH Crown Prince Vajiralongkorn.

The statement also said that the dispute was between the Thai government and a private investor, and had no involvement with the Crown Prince and the seized aircraft - which is his personal property. Moreover, the German government is not one of the stakeholders in the dispute.

"The Thai government has clarified the facts to all levels of German government from the beginning. The German government should therefore be well aware of these facts," the statement said.

The statement said the Thai government was "disappointed by the stance and the actions of the German government", citing a statement issued by the German Embassy.

"The Ministry of Foreign Affairs reaffirms its commitment to protecting the dignity of HRH Crown Prince Maha Vajiralongkorn and will do everything to end the impoundment quickly and fairly," the statement said.

Prime Minister Abhisit Vejjajiva said the German Embassy in Bangkok should stay away from the investment conflict between the Thai government and a German construction firm, since the case was now being considered by the court.

"Basically, the administration has the right to protect private investment and consult with the host country to settle the case. We do the same - but the way in which the embassy did it was not proper," Abhisit said.

The German Embassy's statement - which has been removed from its homepage - demanded that Thailand compensate Walter Bau for damages of about ¤30 million (Bt1.28 billion) in accordance with a decision made by an international arbitration tribunal in 2009.

Walter Bau also brought the matter before the United States District Court, Southern District of New York, on March 26 last year, seeking enforcement of the award in the US. The court ruled in favour of Walter Bau and the Thai government is in the process of appealing against the decision.

Abhisit said he would consult with the Office of the Attorney-General on the appeal in the New York court.

The case became controversial when German insolvency officials seized the Boeing 737 used by the Crown Prince while it was parked at Munich Airport in southern Germany this month.

The move was aimed at forcing the Thai government to pay the compensation owed to the company. The German court in Munich decided last week to release the plane only after the Thai government paid a ¤20 million deposit, but the government refused.

The Office of the Attorney-General will hold a press conference to outline the latest developments in the Boeing case, an official at the office said.

Abhisit said the main purpose of the German Embassy's statement was to force the Thai government to pay compensation to the construction firm. "I understand that the embassy is talking about the main case in the New York court, not

the royal aircraft, and we insist that the case is still under court trial," he said.

"If the case is settled and finds that Thailand has an obligation to compensate the company, we will take responsibility accordingly. So at this stage the German administration should not intervene in the case," Abhisit said.

The German Embassy argued that the New York proceedings merely concerned the question of whether a compulsory enforcement was also possible in the United States.

It would do nothing to alter Thailand's obligation to pay compensation, it argued.

-- The Nation 2011-07-28

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PM Fires Back at Germany for Urging Thailand to Pay Compensation

The outgoing PM fired back at Germany after its embassy pressed Thailand to pay Walter Bau on its website.

Interim PM Abhisit Vejjajiva criticized the German embassy for intervening in the long-running dispute between Thailand and Walter Bau over the Don Muang Tollway, after publishing a comment on its embassy website, urging Thailand to pay the German contractor 36 million Euro or 1.56 billion baht compensation.

The Germany embassy claimed the court would not reconsider the case.

Abhisit clarified that the case in which Thailand is fighting is still under progress.

Meanwhile, the The Thai delegation is preparing to appeal an order by the US District Court in New York that Thailand should pay the German firm.

The Foreign Ministry issued an official statement, saying that Thai government is ready to comply with the Court's order as soon as the case has been finalized.

Abhisit said that perhaps the German government had referred to an international arbitration panel's decision in Geneva.

Meanwhile, Abhisit insists that fugitive ousted PM Thaksin Shinnawatra has nothing to do with the seizure case.

Abhisit added that he does not know whether Thaksin will be back home next September.

He also suggested that the next government should treat Thaksin as a fugitive, meaning that he must not be given any privileges.

He stated that the Pheu Thai government would be challenged by Thaksin's case and that it would be a test as to whether the soon to-be PM is committed to the interests of her sibling or her duty as the nation's leader.

-- Tan Network 2011-07-28

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Foreign Ministry Issues Response to German Embassy's Statement on Walter Bau Dispute

The Foreign Ministry has issued an official statement to counter the German government after it published a statement on its website urging Thailand to pay compensation to a German contractor to end an ongoing dispute.

The Foreign Ministry issued an official statement on its website after the German embassy requested that the Thai government compensate Walter Bau for contractual violations over the Don Muang Tollway project.

The Ministry insists that the long-running dispute is between the state and the German contractor, meaning that neither His Royal Highness Crown Prince Maha Vajiralongkorn nor the Germany government are involved in this issue.

The Ministry insists that a Thai delegation already clarified all of the facts of the case with the German government in the initial stage of the case.

As such, the Thai government is very disappointed with the German government for its statement on the embassy's website.

Thailand is especially upset about the fact that HRH Crown Prince's private property has been seized to pressure the Thai government to pay compensation.

The Ministry pledges to honor the Crown Prince's reputation. It is rushing to free the royal plane as soon as possible.

Regarding Thaksin traveling to Germany, the German Ambassador, Stephan Doople said that it all depends on the Berlin government and whether they will give him a visa.

He refused to give his opinion on the issue.

-- Tan Network 2011-07-28

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JET SCANDAL

'New info' in jet seizure case

By The Nation

Abhisit says govt has significant information in hand that could resolve disputes with Germany in Kingdom's favour

Prime Minister Abhisit Vejjajiva is preparing to turn the tables on Germany in the investment conflict and the jet-seizure case - saying Thailand has information that could make Berlin change its tone.

However, Abhisit said he could not reveal the information immediately because it might affect the court proceedings, both in New York and Munich.

The investment conflict between Thailand and Germany began when the Germans demanded that the Thai government compensate construction firm Walter Bau ¤30 million (Bt1.28 billion) in damages after a decision by an international arbitration tribunal in 2009 over the Don Muang Tollway.

Walter Bau also brought the matter before the US District Court in New York on March 26 last year, seeking enforcement of the award in the United States. That court also ruled in favour of Walter Bau, and the Thai government is in the process of appealing against the decision.

The case became controversial when German insolvency officials seized the Boeing 737 used by HRH Crown Prince Maha Vajiralongkorn while it was parked at Munich Airport in southern Germany this month.

The move was aimed at forcing the Thai government to pay the compensation owed to the company. The German court in Munich decided last week to release the plane only after the Thai government paid a ¤20-million deposit, but the government refused.

Abhisit called a meeting yesterday with agencies including the Office of the Attorney-General and the Foreign, Transport and Finance ministries to seek ways to fight the court battles in New York and Munich.

The agencies claim to have new information useful for Thailand in the court proceedings and he expects all information to be made clear next month, Abhisit said.

Asked whether he thought Thailand had a chance to win the case, Abhisit said: "Yes, I think the information is significant for the case.

"As far as I know, the information indicates there [has been] no justice for the Thai government in this case" so far, he said. "If the German government considers this information, I think it should readjust its stance towards Thailand. The case might not be prolonged."

Attorney-General Julasing Wasantsing said briefly after the meeting with the prime minister that "there is a chance, there remains hope in the case".

The Foreign Ministry yesterday summoned Stefan Duppel, charge d'affaires at the German Embassy, to take diplomatic note of the Thai government's position and explained the case from a Thai point of view.

The ministry expressed its disappointment on the German action in issuing a statement demanding that the Thai government pay the compensation to Walter Bau.

-- The Nation 2011-07-29

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FA to Submit Evidence in Support of Appeal Against US Court's Order Today

The Foreign Ministry will submit documents as evidence in support of its appeal against the US district court's ruling demanding Thailand pay compensation to a German firm for alleged breach of contract in the Don Muang Tollway project.

Acting spokesperson for the Foreign Ministry Jesda Katavetin said the Office of Attorney General is compiling documents and evidence in support of appeal against an order by the Southern District Court of New York that Thailand is obliged to compensate Walter Bau for contractual violations in the Don Muang Tollway venture, in which the German firm is a shareholder.

He expects all documents to be submitted to the US court today.

Meanwhile, Jesda said his ministry will continue to seek the release of an impounded royal aircraft at Munich Airport.

The German court has scheduled another hearing for the case for mid-August.

-- Tan Network 2011-07-29

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'Bring case to Thailand'

By The Nation

Office of the Attorney-General says Walter Bau must approach a Thai court if it wants to pursue compensation

The Office of the Attorney-General (OAG) yesterday challenged the German construction firm Walter Bau to bring the investment conflict case over Don Muang Tollway to a Thai court to enforce the compensation awarded by an international arbitration tribunal.

"If they really want compensation, they should bring the case to a Thai court. There is so much Thai government property here," said Attorney-General Julasing Wasantasing.

"The arbitration tribunal awarded the company two years ago, why haven't they brought the case to a Thai court for enforcement? Why ask the German court to enforce the case and seize the royal plane?" he asked.

The investment conflict has turned into a war of words between Thai and German officials since German insolvency officials seized a Boeing 737 used by HRH Crown Prince Maha Vajiralongkorn while it was parked at Munich Airport in southern Germany this month.

The move was aimed at forcing the Thai government to pay compensation owed to the company. The German regional court of Landshut decided last week that the plane could be released only after the Thai government paid a ¤20-million (Bt850.8 million) deposit, but the government refused.

The OAG will file a lawsuit against Germany for unfair seizure of the plane, Julasing said, but declined to disclose whom he would sue, on what grounds, when or where. "If they are still bothering us, we have to do something to pay them back," he said.

On July 1, 2009, an international arbitration panel in Geneva made a final judgement in favour of Walter Bau. The Thai government was ordered to pay ¤36 million in damages to the company for breaching obligations set out in the tollway contract. The decision was final.

Walter Bau brought the matter before the US District Court in New York on March 26 last year, seeking enforcement of the award in the United States. That court ruled in favour of Walter Bau, but the Thai government appealed on July 28 last year against the decision.

The company also brought the case to a German court in Berlin asking for enforcement of the arbitration tribunal's decision. The case is now under consideration, Julasing said, adding that he would bring a key witness to the trial to prove that the international tribunal mishandled the case.

Thailand had a witness who was very familiar with the investment contract from the beginning, but the international arbitration tribunal refused to take this witness into account and made an unfair judgement against the Thai government, Julasing said.

"If the German court in Berlin learned about this key witness, I believe the court would agree with Thailand that the tribunal made the wrong decision on the case," he said. "Therefore enforcement to compensate the company would be impossible." The Berlin court has asked both sides to submit documents and evidence for its consideration by August 16, he said.

The OAG also filed a case at the Thai Administrative Court asking it to terminate the international arbitration tribunal's decision.

The Primary Administration Court forwarded the case to the Supreme Administrative Court for consideration, he said.

-- The Nation 2011-07-30

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HRH Maha Vajiralongkorn Set aside Money to End Jet Dispute

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