German Firm Busted For Collusion In Medical Deals With 8 Public Hospitals: Bangkok

[webfact]

German Firm Busted for Collusion in Medical Deals with 8 Public Hospitals

BANGKOK: -- The Department of Special Investigation, or DSI, conducted a search of a medical equipment firm in the Langsuan area following a complaint against bid rigging for dialysis machines with eight public hospitals.

DSI Director-General Tharit Phengdit led officials to search the office of Fresenius Medical Care (Thailand) on the 24th floor of the Millenia building at Langsuan Road following a complaint from the Comptroller General's Department that the company was involved with bid rigging of dialysis machines by the Uttaradit Hospital.

The German company was guilty of forging documents from the Vechakham Company, which dissolved its operations in 1999, so that they can place bids by using the name of the defunct firm on the procurement of dialyzers. Fresenius eventually secured contracts with eight state-run hospitals, worth a total of 18 million baht.

The DSI is preparing to issue summons for six people who are suspected to be involved, including managing director Surang Phromsiri to hear charges.

The six could be charged for anti-trust violations which are punishable by a three year jail sentence and a fine equivalent to half of the maximum bidding amount, or both.

The DSI chief noted that officials will continue to look into whether any hospital staff were involved in the collusion to bring them to prosecution. In addition, his agency will ask the Public Health Ministry to check on the quality of the purchased dialysis machines.

-- Tan Network 2012-02-09

[rubl]

IT will be interesting to find out if the German parent company knew about what was going on in their local subsidiary. In principle the German company can be prosecuted in Germany for this

[sparebox2]

This prove that some German company are just as corrupt as Thais. Full stop.

[kartman]

IT will be interesting to find out if the German parent company knew about what was going on in their local subsidiary. In principle the German company can be prosecuted in Germany for this

Pehaps but didn't think the 'Heat' would come from the other end.

[rkidlad]

This prove that some German company are just as corrupt as Thais. Full stop.

Yeap, you have confirmed there is corruption in Thailand, and you confirmed that German companies are corrupt. Thank god it wasn't a British company. We're still not corrupt at all.

[trainman34014]

Smells like someone higher up the ladder in the 'Controllers General Department' didn't get a big enough pay off !

[geriatrickid]

This prove that some German company are just as corrupt as Thais. Full stop.

Yeap, you have confirmed there is corruption in Thailand, and you confirmed that German companies are corrupt. Thank god it wasn't a British company. We're still not corrupt at all.

In fairness to the UK, there is an effort to enforce anti corruption measures. Germany and Japan controlled organizations usually get named in these kind of actions primarily because there is no emphasis on enforcement of the regulations and it gets to a point where the bribery is so blatant that other companies complain. China has a different approach: No transparency, so it is difficult to deal with the Chinese sourced bribes.

[rubl]

This prove that some German company are just as corrupt as Thais. Full stop.

Yeap, you have confirmed there is corruption in Thailand, and you confirmed that German companies are corrupt. Thank god it wasn't a British company. We're still not corrupt at all.

In fairness to the UK, there is an effort to enforce anti corruption measures. Germany and Japan controlled organizations usually get named in these kind of actions primarily because there is no emphasis on enforcement of the regulations and it gets to a point where the bribery is so blatant that other companies complain. China has a different approach: No transparency, so it is difficult to deal with the Chinese sourced bribes.

"Anti-Bribery Roundtable - Why German businesses need to act now

December 2011 "

http://www.nortonrose.com/knowledge/publications/59647/anti-bribery-roundtable-why-german-businesses-need-to-act-now

Download the summary report mentioned at the end, interesting reading

[noitom]

This prove that some German company are just as corrupt as Thais. Full stop.

Virtually every foreign company in Thailand "is in on the take." They know it going in, and if not, they find out right away as soon as the Thai "Mr. 20%" shows up. By then it's too late to unwind the investment cleanly and the margins still look okay, so they play. All the companies know what's going on in Thailand. It's too bad that they don't take the road less traveled and reject Thailand. Many do, but Thailand will never change unless they all do.

[cloudhopper]

This prove that some German company are just as corrupt as Thais. Full stop.

"The DSI is preparing to issue summons for six people who are suspected to be involved, including managing director Surang Phromsiri to hear charges."

I wonder how many of the 6 are German like Herr Phromsiri...

[Unkomoncents]

It's a good thing life's good here because otherwise someone reading this article might ask some questions like: anti-trust? Do they even know what anti-trust means? No one on the vertical monopoly business (Central, True, etc.) could possibly be involved in "anti-trust" crimes. ONLY ZE GERMANS! This just sounds like another stupid attempt by one insignificant third-world country at attention-seeking towards one much more significant country with much, much more serious considerations that whether the word's most corrupt special investigations service is "servicing" you (the DSI). Maybe Yingluck is still upset that she only met with the president of Tanzania "S-a-t-u-p-i-d E-u-l-o-p-e a-n-d l-e-y s-a-t-u-p-i-d E-u-l-o-p-e s-a-v-i-n-g p-o-l-i-c-y.

[exeter]

"Hospitals could be charged" sounds like they wont be if there is an envelope under the table and into the right hand.

[supaprik]

This prove that some German company are just as corrupt as Thais. Full stop.

Actually IT proves nothing at all...

[sparebox2]

This prove that some German company are just as corrupt as Thais. Full stop.

Virtually every foreign company in Thailand "is in on the take." They know it going in, and if not, they find out right away as soon as the Thai "Mr. 20%" shows up. By then it's too late to unwind the investment cleanly and the margins still look okay, so they play. All the companies know what's going on in Thailand. It's too bad that they don't take the road less traveled and reject Thailand. Many do, but Thailand will never change unless they all do.

Not true. Singapore company do not corrupt. Temasak took over Shin Corp is 100% transparent.

[Traveller45]

I tend to have a more moderate view on this. Before you prosecute, first prove that either/or:

Quality of Machines purchased is inferior

Price is substantially higher than fair market

Sales conditions vary much from general practice

etc.

What matters most here is the support of the patients in the hospitals with reliable machines. Fresenius is definitely a market leader in terms of quality. I am not a great fan of public tender anyways, for a variety of reasons. The entity bidding, for instance, is usually obliged to accept the lowest bid, if public money is involved, irrespective of the record and name of the bidder, experience working together etc. Companies also sometimes use substandard components in order to achieve lowest bid, things that the user will notice only in due course, when it s too late and personal harm may have occurred.

[chivo]

its a german company but maybe it was THAI employees???? maybe the germans didnt know....

[Tatsujin]

So when it comes to being awarded 'contracts' in Thailand, at what point is the 'tea money' mentioned? And who offers or suggests it? The supplier or the recipient?

Am just trying to work out the 'rules' so we don't lose out on any more 'contracts' . . .

Edited February 10, 2012 by Tatsujin

[sparebox2]

its a german company but maybe it was THAI employees???? maybe the germans didnt know....

You are correct.

Germans are saints and

Thais are devils.

[chrisinth]

So when it comes to being awarded 'contracts' in Thailand, at what point is the 'tea money' mentioned? And who offers or suggests it? The supplier or the recipient?

Am just trying to work out the 'rules' so we don't lose out on any more 'contracts' . . .

I would be interested as well. Would need to ask noitom where his information comes from; he is obviously in the know.

Maybe it is after last payment for the contract, or 10 years after last payment. Have never paid tea money in that time, and that covers a lot of projects and sub-vendors!

[pacovl46]

This prove that some German company are just as corrupt as Thais. Full stop.

Um, in case it slipped your attention or you did not know this until now - corruption is a worldwide "phenomenon". So, thank you for pointing out the obvious.

[Heimdallr]

Don't feed the troll called SB2. Funny how the MD in this corruption case is Thai

[TackyToo]

its a german company but maybe it was THAI employees???? maybe the germans didnt know....

You are correct.

Germans are saints and

Thais are devils.

When did your German “Fräulein” leave you? And did she really take all your favorite toys when she left?

[NewlyMintedThai]

Siemens got caught paying kickbacks as did the Austrian fire truck company. European companies are more than willing to engage in these practices...don't fool yourself.

[NewlyMintedThai]

Oh, and don't forget the UK company Diageo (Johnnie Walker), caught paying off a government minister to help get tax laws changed in their favor. And the US couple who got caught paying off the TAT chief for exclusive rights to run the Bangkok Film Festival.

The whole world is stinking crooked.

[sirchai]

This prove that some German company are just as corrupt as Thais. Full stop.

The DSI is preparing to issue summons for six people who are suspected to be involved, including managing director Surang Phromsiri to hear charges.

Looks pretty much that all involved are Thai.....

[ralfbkk]

This prove that some German company are just as corrupt as Thais. Full stop.

You may want to elaborate on this further because Fresenius Thailand is completely run by Thai's and not German. Like some one said here, and I conquer on this, did the parent company in Germany actually knew what was going on? Apparently not, because everything was covered up by Vechakham, which was 100% Thai and out of German jurisdiction.

[Oberkommando]

You are correct.

Germans are saints and

Thais are devils.

They were on the same side in WWII though.