Anti-corruption: NRSA finds irregularities surrounding duty-free concessions at Suvarnabhumi

[webfact]

NRSA subcommittee on anti-corruption finds irregularities surrounding duty-free concessions at Suvarnabhumi

BANGKOK: -- BANGKOK, 9 June 2016 (NNT) - A subcommittee of the National Reform Steering Assembly has found some irregularities surrounding the duty-free concessions operation at Suvarnabhumi Airport.

Deputy chairman of the NRSA subcommittee in charge of recommendations on measures and mechanism against corruption, Charnchai Issarasenarak said that the latest probe into the concessions business at Suvarnabhumi Airport, which was undertaken on March 11, 2005, found the licenses to be invalid due to a violation of the law against bid-rigging and anti-competitive practices as well as some other laws.

Mr. Charnchai said that the finding reached this conclusion because, while only two bidders were involved in the bidding process, that is King Power International Company Limited and Mastermind Consultant Company Limited, the entity that signed the concessions on the use of space at Suvarnabhumi Airport turned out to be King Power Suvarnabhumi Company Limited, which did not participate in the bidding.

He added that King Power Suvarnabhumi Company Limited was found to be registered a few days before the signing of the concessions — a situation that appears to be against the terms of the TOR, which demands qualified bidders have no less than five years experience in the duty-free business.

Mr. Charnchai said that the subcommittee will present its report to the special committee overseeing the reform of the country’s anti-corruption measures to consider, while urging related government agencies to launch an investigation into it revelation.


-- NNT 2016-06-09

[trainman34014]

Anything that ever reaches the courts will be 50 years or more after all participants have died, fled the country or are barricaded inside Temple walls !

[mike324]

Yet King Power has been the monopoly for the past decades, not to mention the owner is one of the richest in Thailand....good that Lotte Duty Free from Korea will be opening end of the year, giving King Power a run for its money...but I believe Lotte does not have a stand at the airport yet.

[Prbkk]

tip of the iceberg.

[colinneil]

Irregularities !! Anybody surprised at that????

Not me, nothing is done here without kickbacks.

King power and monopoly go hand in hand.

[dcnx]

Yet King Power has been the monopoly for the past decades, not to mention the owner is one of the richest in Thailand....good that Lotte Duty Free from Korea will be opening end of the year, giving King Power a run for its money...but I believe Lotte does not have a stand at the airport yet.

Was just at Lotte in Seoul a few days ago with my gf. The duty free skin care floor was so crowded with Chinese, I've never seen anything like it. It looked as if they announced they were giving out free gold. 1000s of them packed into the area, yelling and clawing their way to a counter. Total chaos.

[ezzra]

Anyone with half a brain and doesn't live under a rock would know by now that Power King concessions

to run all those so called 'duty free' for so many years is most likely fraught with more than just luck

and business acumens and that most likely lots and lots of money and in kind are probably in play here,

what can be done about it now? not much, unless a new auction for the concession will be called....

[smutcakes]

Seems maybe some authorities read about the windfall King Power would be getting through Leicester.

Perhaps someone fancied a bit of the action and are giving KP a bit of a squeeze to see if anything drops out of their pockets.

[Prbkk]

Seems maybe some authorities read about the windfall King Power would be getting through Leicester.

Perhaps someone fancied a bit of the action and are giving KP a bit of a squeeze to see if anything drops out of their pockets.

You can now buy a Leicester scarf on Thai Airways ( USD 19). King Power provides all duty free for Thai.

[prestburypark]

F*** duty free, what a load of nonsense. People lose their rationality when travelling. Packing all that extra crap onto an aircraft is a safety hazard too, should be banned.

[gchurch259]

I do not buy at Duty Free in Airports, I wish they would go away and it would be easier to walk in the Terminal ! I go to the airport to fly not buy !!

[trogers]

Hmmm...2005. Who opened that airport?

[razer]

Duh! Ya think? When a bottle of single malt costs EXACTLY the same at Swampy Duty Fee as it does at Big C (which includes tax)?

[SOTIRIOS]

....I also have heard...

[mtls2005]

By all accounts Vichai is a savvy political operator, and he has moved easily from the orbit of he who must not be named, to Junta/2006, to Dems, to PTP, and to Junta /2014.

He fended off a serious attack by getting the DMK franchise, arguably with aggressive tactics. Some rumors say he upset some old-line retail GIANTS in that bid.

There may be some agitating to pry loose his control, hence the use of various/sundry quasi-government overseers (like the NACC)?

But once you've held a monopoly here for a decade it is usually a given it is a family right in perpetuity.

When a bottle of single malt costs EXACTLY the same at Swampy Duty Fee as it does at Big C (which includes tax)?

Possible I guess. Typically it's 70 cL in a shop, and 1 L in KPDF, so even if the bottle price is the same, it's obviously a lot lower per mL. I find the bottle price in town, on 70 cL is still at least 10% above the same 1L at KPDF.

IME, the savings is 30-40% in the 2,000 baht range of single malts. Worldwide demand for single malt is also fueling higher prices, as they simply can't turn the spigot overnight on production.

Edited June 9, 2016 by mtls2005

[pattjock]

Charnchai Issarasenarak said that the latest probe into the concessions business at Suvarnabhumi Airport, which was undertaken on March 11, 2005, found the licenses to be invalid due to a violation of the law against bid-rigging and anti-competitive practices as well as some other laws.

11 years ago, do they really need to dig that far back to find anything???

[TPI]

Seems maybe some authorities read about the windfall King Power would be getting through Leicester.

Perhaps someone fancied a bit of the action and are giving KP a bit of a squeeze to see if anything drops out of their pockets.

You couldn't be suggesting that there is some sort of hanky panky going on in the continueing operations of "King Power" could you, and that some terrible person/s would take advantage of the situation?? My friend you're talking about the Thai people! Impossible....perish the thought!

[laocowboy2]

And cosmetics are much cheaper than in town - although not as cheap as In Dubai Duty Free. However some things/shades are only available in Thailand so I have to buy.

By all accounts Vichai is a savvy political operator, and he has moved easily from the orbit of he who must not be named, to Junta/2006, to Dems, to PTP, and to Junta /2014.

He fended off a serious attack by getting the DMK franchise, arguably with aggressive tactics. Some rumors say he upset some old-line retail GIANTS in that bid.

There may be some agitating to pry loose his control, hence the use of various/sundry quasi-government overseers (like the NACC)?

But once you've held a monopoly here for a decade it is usually a given it is a family right in perpetuity.

When a bottle of single malt costs EXACTLY the same at Swampy Duty Fee as it does at Big C (which includes tax)?

Possible I guess. Typically it's 70 cL in a shop, and 1 L in KPDF, so even if the bottle price is the same, it's obviously a lot lower per mL. I find the bottle price in town, on 70 cL is still at least 10% above the same 1L at KPDF.

IME, the savings is 30-40% in the 2,000 baht range of single malts. Worldwide demand for single malt is also fueling higher prices, as they simply can't turn the spigot overnight on production.

[Deez]

Unfortunately this will be the last we here of it. Any (punishment, i.e., settlement) will be out of the public eye

[pauleddy]

Leicester City came up from nowhere for the first time in 120 years. Not only were they able to buy some good players (some of them cheap because of shrewd selection), but millions went into upgrading and marketing. Of course, none of this has come from dodgy money.

[tuanku]

King Power. The name puts them above suspicion!

[Redline]

Yet King Power has been the monopoly for the past decades, not to mention the owner is one of the richest in Thailand....good that Lotte Duty Free from Korea will be opening end of the year, giving King Power a run for its money...but I believe Lotte does not have a stand at the airport yet.

http://www.koreatimes.co.kr/www/news/biz/2016/06/123_206518.html

It looks like Lotte has some corruption problems of its own

[whatproblem]

Isn't everything here done with corruption of some way or another

[halloween]

If you think inside the terminal is dodgy, just wait until they look at the car park concessions.

[phoenixdoglover]

How is this issue a matter for the NRSA?

Every week in Thailand there is some agency making announcements on matters outside their mission.

Who is at the helm? Oh yeah, the reform guys.

[mike324]

Yet King Power has been the monopoly for the past decades, not to mention the owner is one of the richest in Thailand....good that Lotte Duty Free from Korea will be opening end of the year, giving King Power a run for its money...but I believe Lotte does not have a stand at the airport yet.

Was just at Lotte in Seoul a few days ago with my gf. The duty free skin care floor was so crowded with Chinese, I've never seen anything like it. It looked as if they announced they were giving out free gold. 1000s of them packed into the area, yelling and clawing their way to a counter. Total chaos.

yup its crazy crowded in the duty free in Korea with all the Chinese tourist. Korea is one of the closest destinations, hence popular with tour groups. They go crazy for the skin care products...well not just the Chinese, but Chinese seems to be the biggest group of tourist almost everywhere nowadays.