PR War Over Bangkok Skytrain Deal Heats Up

[webfact]

BMA CONTROVERSY

PR war over Skytrain deal heats up

Praphan Jindalertudomdee,

Thanatpong Kongsai

The Nation

Pheu Thai Party says BMA contract with BTSC lost capital Bt6.47 billion

BANGKOK: -- The Pheu Thai Party continued its attack on the Bangkok administration's extension of the Skytrain contract yesterday, claiming the city "lost" Bt6.47 billion "for nothing".

However, administrators say the deal saved the city Bt6 billion in transport costs.

Maha Sarakham MP Yutthapong Jarassathien attacked the deal in a meeting in the Lower House of Parliament. He said a decision by Krungthep Thanakom Co Ltd, the investment arm of the Democrat-led Bangkok Metropolitan Administration (BMA), to award Bangkok Transit System Co (BTSC) a 13-year extension, when BTSC still had 17 years left on its contract, enabled BTSC to monopolise the Skytrain operation. BTSC, a subsidiary of BTS Group Holdings, is the current contractor.

Yutthapong alleged this caused the city to lose Bt6.47 billion for nothing, as the money would be paid as compensation to BTSC for the income lost over Skytrain extensions.

The money would come from city coffers, so it may violate regulations, because city funds should be used for emergencies such as a disaster or flood, he said.

DEMAND FOR INVESTIGATION

Yutthapong said he would ask the House Committee on Local Administration to probe the contract.

The BMA hired Krungthep Thanakom (KT) to run the mass transit system and the contract that KT drew up with BTSC let the latter operate and maintain the Skytrain.

Pheu Thai Party spokesman Prompong Nopparit said he would complain to the Office of the National Anti-Corruption Commission today and to the House Committee on Corruption Prevention and Suppression tomorrow. On Thursday he would ask the Interior Ministry to probe the city's claim that it didn't need ministry approval to extend the contract.

But Deputy Bangkok Governor Theerachon Manomaipiboon, accompanied by KT executive Amorn Kitchawengkul, told a press conference yesterday that the contract extension was legitimate and the city was ready to clarify any doubts surrounding the move.

He said the contract extension backed by the Bangkok Council would give the city the power to control the Skytrain and fares, and thus prevent long-term impacts on people. The BMA was authorised by law to make the decision without having to seek permission from the Interior Ministry, he added.

Amorn said the Bt190 billion budget to hire BTSC to run the Skytrain for 30 years wasn't set carelessly. KT had Sasin Graduate Institute of Business Administration at Chulalongkorn University and the Asian Development Bank (ADB) estimate expenses, and KT had negotiated to get this price, which was Bt1.8 billion cheaper than the international standard. He said a recent study also found this 30-year contract actually saved the city up to Bt6 billion in transport costs compared to the existing 17-year contract.

-- The Nation 2012-05-15

[GentlemanJim]

I just wish ALL the MPs would get on with running the country instead of trying to put each other in jail. Run the frigging country for Gods sake!

[RickBradford]

Exactly. The one piece of modern infrastructure which makes Bangkok look up-to-date and livable, and they're playing political games with it.

I can see this escalating to the point where they decide to close the BTS for "irregularities", and demonstrate once and for all how little the politicians of this country care about the people.

[WhizBang]

Me thinks someone in PT did not get their slice of the pie.

[maidu]

is this story related at all to the concrete monoliths that stretch out to Don Muang airport?

Archeologists, in 300,000 years, might surmise they were some type of linear Stonehenge, signifying....?

[animatic]

Exactly. The one piece of modern infrastructure which makes Bangkok look up-to-date and livable, and they're playing political games with it.

I can see this escalating to the point where they decide to close the BTS for "irregularities", and demonstrate once and for all how little the politicians of this country care about the people.

I suspect this is a game of chicken.

Cause enough trouble or nuisance value to get paid off to go away.

They want their pound of flesh one way or another.

But as much it is ego about PTP being totally cut out, during their political lifecycle,

from taking a cut in the Skytrain profits pie. So a smoke and mirrors campaign to try and pressure a slice of pie out now, or permanently install one of theirs in a Democrat bailiwick to syphon off a share regularly. Follow the money, honey!

[whybother]

is this story related at all to the concrete monoliths that stretch out to Don Muang airport?

No.

[americaninbangkok]

Follow the money, honey!

For those that have seen it, this sounds just like the HBO series The Wire. If you stop looking at individual actions (a small contract here, a court case there), and instead fiocus on following the money all the way through the "supply chain", you'll see a much bigger and more insidious plan in action.