Ministry to seek Bt800m in damages
SUPINDA NA MAHACHAI
THE NATION

Committee weighs next move on tablets

BANGKOK: -- AN EDUCATION Ministry committee handling the One Tablet Per Child project will decide today how to deal with the non-delivery of more than 800,000 units by a Chinese supplier, who is facing a daily fine of over Bt2 million plus a risk of Bt800-million damage claims for its failure to comply with purchase contracts.

The so-called Tablet Board is expected to come up with a few alternatives like launching a new purchase and bidding process to seek new suppliers under the same specifications through e-auction, which would take 150 days. However, this option may require the approval of the Office of Basic Education Commission (Obec) if an amount of money allocated but not yet paid to Chinese supplier Shenzhen Yitoa Intelligent Control would be needed to be spent additionally on future procurements.

This option would take another six months, after the ministry's authority to spend this budget expires at the end of March, meaning the entire process would be completed by September.

The second option is to call for new bids with specifications altered, but this step would take around one year. The last option is to reallocate budgets set for purchase of the units for Zone 1 and Zone 2, which cover all Prathom 1 students in the Central and the South, and in the North and the Northeast respectively, to respective primary education offices to handle the purchases themselves.

A ministry source said that the meeting today would officially abort the procurement from Shenzhen Yitoa, and would decide to seize the Bt120-million bank guarantee lodged with it. A lawsuit will then be filed against the firm to demand Bt800 million in damages for non-delivery.

An Obec source said that Jasmine Telecom Systems, which is required to deliver the tablets to Mathayom 1 students in the northern and northeastern regions, had sent a written statement, saying that it was ready to hand over 18,000 units pending inspection by Obec. The Thai-owned public company needs to deliver 402,889 units in all.

To handle procurements in Zone 3, for Mathayom 1 students in Central and the South where auction has been cancelled, the ministry source said it was likely that money would be handed to area education offices to handle the procurements themselves. Supreme Distribution, whose bidding has been cancelled, had made an appeal to Obec, which has been forwarded to caretaker Education Minister Chaturon Chaisang.

The source said it was known that Chaturon might allow Supreme Distribution to go ahead with the cancellation.

They only have themselves to blame. Might as well fine the person in the mirror.

Seeking damages from a bankrupt Chinese company,

waste of more money and time,its too little too late.

Heads should roll over this and other populist policies

that have just not worked,enriched a few,and lost the

country billions of Bht,and created misery for so many.

Of cause nothing will happen,nobody will be held responsible

a new government will be formed,new crazy populist polices

thought up and implemented ,how long can the country keep

wasting money like this!

regards Worgeordie

Where is all this legal action to take place ?

If it's in China and the Thais come up against Chinese protectionism there will be howls of indignation from those overlooking the fact that's exactly how Thai courts would be but of course that's different.

Just out of curiosity I would love to know the price per unit for these toys / tablets .

I always knew this was a bulls@it project .

Just how much did they pay as a "deposit" and how much of that is now "lost" . . . ?

I can't help but have the feeling that those in power currently are feathering their own nests with manic obsession to the exclusion of everyone else. Why did Thaksin alone receive back over 1,000,000,000 Baht last year (supposedly) from the siezed funds? Who allowed it? Who authorized it? Were all these scams designed to give him back the money he lost in a different way perhaps?

Strange that the Thai company which was part of the scam scheme, and who has also failed to deliver, doesn't face the same damage claims .

Oh, too close to home so the company would probably spill the beans on the scam details if we threaten them you say ?

Seeking damages from a bankrupt Chinese company,

waste of more money and time,its too little too late.

Heads should roll over this and other populist policies

that have just not worked,enriched a few,and lost the

country billions of Bht,and created misery for so many.

Of cause nothing will happen,nobody will be held responsible

a new government will be formed,new crazy populist polices

thought up and implemented ,how long can the country keep

wasting money like this!

regards Worgeordie

Bankrupt ? Since the suspension of deliveries Shenzhen Yitoa's share price has gone up 50%. Seems they are much better off without this business.

Tomorrow's headline:-

"800m compensation from failed One Tablet project to be used to pay rice farmers".

Problem solved!

There should be dozens of people put on immediate suspension and/or terminated for this "hustle."

You want tablets? Just visit the pawn shops; you can find them all there!

The government should be made to publish comparative bids and describe the proposal process. Who was involved in the selection? Let's track in to their relationships and network. Let's see if there are mysterious and suspicious links.

they forwarded 100% advance before delivery?

but how they will get the 30% in corruption money back ?

It would seem that a 'bank guarentee of 120 million was put up by the manufactor, to assure delivery of (800 million worth of tablets?) which are being bought and resold thru a Thai agent/middleman, this is a hint to how this deal was approached. In addition, there has been mention of a pre delivery payment/deposit somewhere in this path to fleecing the public/students, and the overall education system, for the procurement of votes for the present Shin family organization.

Another example of how some people approach, what they preceive as a given right, to self entitlement for their personmal enrichment.

Tomorrow's headline:-

"800m compensation from failed One Tablet project to be used to pay rice farmers".

Problem solved!

That compensation will probably take years, if it ever arrives and 800million is a drop in the ocean compared to the 130billion they owe the farmers.

Strange that the Thai company which was part of the scam scheme, and who has also failed to deliver, doesn't face the same damage claims .

Oh, too close to home so the company would probably spill the beans on the scam details if we threaten them you say ?

Plus it would be interesting to see dull details of the due diligence / analysis of capability to fulfill these contracts, both the Thai and Chinese companies. And the names of all stakeholders connected to the Thai company.

Good luck with that

Thailand has to tread carefully here. The mother country will not take kindly to it's Thai offspring kicking up a fuss, especially if they ever want that railway built.

Are these gaming tablets for the students or an avenue for social media? What else would Thai students use them for certainly not math or science. Do the kids a favour and get them some pens and paper and teachers that have the ability to teach. Problem solved.

I've found a new tablet supplier - suits the updated budget.

Ironic to see the government seeking damages for failing to see through a deal..... unless they use the cash to pay the rice farmers.

Edited February 7, 201412 yr by bigbamboo

I've found a new tablet supplier - suits the updated budget.

Slate.jpg

Only THB 10k each for top spec model ?

Seeking damages from a bankrupt Chinese company,

waste of more money and time,its too little too late.

Heads should roll over this and other populist policies

that have just not worked,enriched a few,and lost the

country billions of Bht,and created misery for so many.

Of cause nothing will happen,nobody will be held responsible

a new government will be formed,new crazy populist polices

thought up and implemented ,how long can the country keep

wasting money like this!

regards Worgeordie

These guys playing the white man.

Lol

Ironic to see the government seeking damages for failing to see through a deal..... unless they use the cash to pay the rice farmers.

That would indeed be a good proposition.

Unfortunately, with the usual " administration costs " this government applies to transfer 800 million Baht from the tablet scam to the rice scam , there wouldn't be any money left to pay the farmers.

'A lawsuit will then be filed against the firm to demand Bt800 million in damages for non-delivery.' No doubt Shenzhen will offset much of that against tea monies paid.

The Ed Ministry better be careful. If they sue the CHinese company, that company might spill the beans on the kick-backs and tea-money paid to get the contract.

Who can believe this Govt will allow the Ed Ministry to sue the company or seek damages.

Seeking damages from a bankrupt Chinese company,

waste of more money and time,its too little too late.

Heads should roll over this and other populist policies

that have just not worked,enriched a few,and lost the

country billions of Bht,and created misery for so many.

Of cause nothing will happen,nobody will be held responsible

a new government will be formed,new crazy populist polices

thought up and implemented ,how long can the country keep

wasting money like this!

regards Worgeordie

Thing is..... This company is apparently not bankrupt.

They are actually a public company who are still trading.

Here is their trading profile on Bloomberg.

http://www.bloomberg.com/quote/300131:CH

They had a small dip of about 10% off its stock on 27th Jan but has recovered that since then and are on an upward trend.

This doesn't represent a company in trouble.

We are not being told the facts here and the NACC should be probing this as a priority.

The only reason this 800,000 tablet contract loss has not affected them, s that maybe there was no contract, or (most probably) they have received billions of baht in deposits that they won't be needing to pay back because maybe just maybe people have already taken their cut of the deposits.... Dubai perhaps?

Long after the Yingluck administration has receded into history, the economic effects will be felt for years to come. The administration - as it is now without power - has hit a brick wall, being unable to proceed with anything. Madcap schemes to procure quick cash - from banks, suing companies ( one million baht per tablet - talk about shooting for the moon ! ) selling rice stocks at business liquidation prices - all have the same impediment - they all require the authority of government. For many, April 1 will not come soon enough. That is when the Yingluck administration will lose its caretaker status - as per Article 7 - which stipulates that if neither a parliament, nor a prime minister nominated from that institution - takes place, an interim prime minister is appointed, nominated through the Senate. All the things the Yingluck administration wants to do will not be possible until then. Of course, by then, those decisions will be permanently out of their hands.

I've found a new tablet supplier - suits the updated budget.

Slate.jpg

Only THB 10k each for top spec model ?

Yup, with lots of free apps.