Govt 'will have to pay Bt9.6 bn for Klong Dan'

[Lite Beer]

Govt 'will have to pay Bt9.6 bn for Klong Dan'
Anapat Deechuay
The Nation

BANGKOK: -- THE GOVERNMENT will have to pay more than Bt9.6 billion in compensation to a consortium over the corruption-plagued Klong Dan wastewater-treatment plant, which has been cancelled, Prime Minister Prayut Chan-o-cha confirmed yesterday.

NVPSKG won its case after suing the Pollution Control Department (PCD) for compensation via the Supreme Administrative Court.

"I have assigned Deputy Prime Minister Wissanu KreaNgam and the Natural Resources and Environment Ministry to negotiate until the very last second. It's not possible to push the amount lower than this," Prayut said.

He confirmed the amount at Bt9.618 billion.

The Supreme Administrative Court issued a ruling in favour of NVPSKG last November.

Kasemsun Chinnavaso, the ministry's permanent secretary, said this week that after post-ruling negotiations, the consortium agreed to waive the interest charge of Bt1.8 million per day. He said it was agreed that the PCD would pay NVPSKG Bt3 billion in May and Bt6 billion in November next year.

"Money will be allocated from all state-owned agencies' fiscal budgets," Kasemsun said.

In 1997, NVPSKG won a project to design and build the Klong Dan facility from the PCD. In 2004, PCD lodged complaints against several companies that were part of the consortium, accusing them of fraud.

In 2009, several government officials and politicians, including former deputy interior minister Vatana Asavahame, were found guilty of corruption related to the Klong Dan project. Vatana is now on the run.

The Supreme Administrative Court ruled that NVPSKG had completed part of construction required for the Klong Dan project and that the PCD had to pay for work that was done.

The project, if it had not been cancelled, was worth about Bt23 billion.

"I don't know if the parts of the construction done can be of any use now," Prayut said.

Source: http://www.nationmultimedia.com/national/Govt-will-have-to-pay-Bt9-6-bn-for-Klong-Dan-30266174.html

-- The Nation 2015-08-08

[Lite Beer]

All ministries will be made to contribute to pay the 9 billion baht in fines for the Klong Dan project

BANGKOK: -- The Pollution Control Department will ask for contributions from all ministries to pay the 9 billion baht in fines to the contracting consortium that built the Klong Dan waste water treatment plant as ordered by the Supreme Administrative Court.

Mr Kasemsant Chinnawaso, permanent secretary of natural resources and environment, said Friday that all ministries would have their budgets deducted by between 2-10 percent as contributions to the PCD to be paid to NVPSK consortium.

The first instalment of the fines, amounting to 3 billion baht, is due in May next year followed by the next in November and the third in May 2017. Mr Kasemsant however said he wanted to pay in two instalments with the first, amounting to 3 billion, next May and the rest in November 2016.

As for the waste water treatment facility in Klong Dan, Samut Prakan, the permanent secretary said the Waste Water Management Organisation had been assigned to study how the facility could be adjusted to be put in service.

The PCD has, so far, paid the constructer about 21 billion baht in construction cost for the project whereas damage to the project which includes the 9 billion baht in fines amounted to 9,618 million baht.

Altogether the Klong Dan project costs the taxpayers about 30 billion baht excluding the costs of lost opportunities which have not yet been determined.

Source: http://englishnews.thaipbs.or.th/all-ministries-will-be-made-to-contribute-to-pay-the-9-billion-baht-in-fines-for-the-klong-dan-project

-- Thai PBS 2015-08-07

[slapout]

The Thai government sure gets itswelf into some legal qundrays when contracts are concerned and payment to contractors, etc.

Even when courts arbritration make decisions in favor of claiment, the govt still drags their feet and puts off making the paffoff/ payout. They will have the reputation as a slacker on payment which just increases the price of material, services etc when put out for bid. They seem to loo9k for ways to make changes during a project.

They need to get competent people in charge of tender , bid procedures , evaluation, payments biddeers qualification and history, etc.

expected from inexpierenced buffons but not from those in charge of several trilliion baht budget yearly.

[laocowboy2]

The Thai government sure gets itswelf into some legal qundrays when contracts are concerned and payment to contractors, etc.

Even when courts arbritration make decisions in favor of claiment, the govt still drags their feet and puts off making the paffoff/ payout. They will have the reputation as a slacker on payment which just increases the price of material, services etc when put out for bid. They seem to loo9k for ways to make changes during a project.

They need to get competent people in charge of tender , bid procedures , evaluation, payments biddeers qualification and history, etc.

expected from inexpierenced buffons but not from those in charge of several trilliion baht budget yearly.

My friend - "They seem to look for ways to make changes during a project". - is the whole point. Bid low to get the contract and then make your (super) profit from the variation orders. Happens everywhere - and often a whiff of collusion between civil servant and contractor.

[worgeordie]

This project is in the top ten of Thai corruption,

some people got very rich from this scam,the

losers as usual the Thai people.

regards Worgeordie

[TallGuyJohninBKK]

Altogether the Klong Dan project costs the taxpayers about 30 billion baht excluding the costs of lost opportunities which have not yet been determined.

What a waste!!! 30bn baht down the rat hole, and apparently, they've never even had a functioning waste treatment plant out of the deal -- just a while elephant project sitting there getting old and decaying.

Somehow, this project would seem to epitomize much of what's wrong with the Thai governments, and perhaps might also be a broader metaphor for a place where a lot of sh** happens but doesn't ever get cleaned up.

[Acharn]

In 1997, NVPSKG won a project to design and build the Klong Dan facility from the PCD.

It's so long ago I'm not sure of my memory, but it seems to me there was a series in the BKK Post about that project, in 1998 or 1999. Do the BKK Post archives go that far back? The local residents were complaining about corruption in the contract, that the plant wasn't needed, and that it was displacing something useful for the community, maybe mangrove wetlands. My memory is that the Post published two stories of a three part series (or maybe it was three parts of a four part series), and they named names of the companies that were making dodgy promises and claims. The last part of the series never appeared. At least this is something they shouldn't be able to blame on Thaksin or Yingluck, but I'm sure they will.

Edited August 8, 2015 by Acharn

[springheeled jack]

this doesn't surprise me in the least fraud and corruption go hand in hand in Thailand and will continue as long as there is big money to be made .

[billd766]

The Thai government sure gets itswelf into some legal qundrays when contracts are concerned and payment to contractors, etc.

Even when courts arbritration make decisions in favor of claiment, the govt still drags their feet and puts off making the paffoff/ payout. They will have the reputation as a slacker on payment which just increases the price of material, services etc when put out for bid. They seem to loo9k for ways to make changes during a project.

They need to get competent people in charge of tender , bid procedures , evaluation, payments biddeers qualification and history, etc.

expected from inexpierenced buffons but not from those in charge of several trilliion baht budget yearly.

Can you clarify WHICH government you are talking about? I don't think that this current government was around at the time.

It was done under an "elected government" stuffed full of "professional politicians" as I remember.

[smutcakes]

The Thai government sure gets itswelf into some legal qundrays when contracts are concerned and payment to contractors, etc.

Even when courts arbritration make decisions in favor of claiment, the govt still drags their feet and puts off making the paffoff/ payout. They will have the reputation as a slacker on payment which just increases the price of material, services etc when put out for bid. They seem to loo9k for ways to make changes during a project.

They need to get competent people in charge of tender , bid procedures , evaluation, payments biddeers qualification and history, etc.

expected from inexpierenced buffons but not from those in charge of several trilliion baht budget yearly.

Can you clarify WHICH government you are talking about? I don't think that this current government was around at the time.

It was done under an "elected government" stuffed full of "professional politicians" as I remember.

He's referring to Thai Governments in general, not your beloved Junta so don't get your knickers in a twist.

This type of corruption goes on under all Govts, civilian or military, and has done since the beginning of time and will in all likelihood continue to do so.

[Jimlove]

Some people should not be handling finances ....

[billd766]

The Thai government sure gets itswelf into some legal qundrays when contracts are concerned and payment to contractors, etc.

Even when courts arbritration make decisions in favor of claiment, the govt still drags their feet and puts off making the paffoff/ payout. They will have the reputation as a slacker on payment which just increases the price of material, services etc when put out for bid. They seem to loo9k for ways to make changes during a project.

They need to get competent people in charge of tender , bid procedures , evaluation, payments biddeers qualification and history, etc.

expected from inexpierenced buffons but not from those in charge of several trilliion baht budget yearly.

Can you clarify WHICH government you are talking about? I don't think that this current government was around at the time.

It was done under an "elected government" stuffed full of "professional politicians" as I remember.

He's referring to Thai Governments in general, not your beloved Junta so don't get your knickers in a twist.

This type of corruption goes on under all Govts, civilian or military, and has done since the beginning of time and will in all likelihood continue to do so.

Is slapout your altar ego that you answer for him?

I had no idea which government he was talking about so how did you know?

Most of the governments in the last 15 years have been your beloved "elected" Thaksin goverments.

[slapout]

Reference the date of this boondoggle, and as mentioned I was not referring to the curren government as involved, although they (present government) could ask for extridiation of a fellow setting across the border who was involved, bring him back to serve prison term and impound and sell assits to recover some of the losses.

A Germany company got a Thai jet liner impounded until a debt was paid for non payment of court ordered compensentation for work preformed.

The Thai's are getting a reptuation for reneaging on signed and agreed upon bids. I did business with in the boder of Thailand for equiptment and or service in the past. . I would honor my quote when a irrovicable LC was in an American bank which was drawn against and money was paid for the equipment upon delivery to the duty free holding area of a freight forwarder, inspected by 3rd party to verfy equipment met bid/LC specifications and shipped

Its standard business practice throughout the world. No I refused to even bid to those who wanted the LC to be payable via some middle east bank that they would propose. The Thai bidding, tendering system is a joke. A reputable company with a decent line of credit would not dare ask for a payment (thai finance) so the company could have enough cash to start work/buy equipment. on a project for which they had entered competative bidding.

Its the joke of the honest businesses and governments of the world when they see the antics going on or those that have gone on in the past..

Edited August 8, 2015 by slapout

[sammygood]

so pay 9 billion of tax payers money and you get 0 in return

sounds like all the water works after the flood & a bit of rice scam on top of that