More doubts on CAT-True deals

FRIDAY, MAY 04, 2012
More doubts on CAT-True deals

In another move by the Information and Communications Technology Ministry on the controversial agreement between CAT Telecom and True group on a 3G service, it yesterday submitted to the Department of Special Investigation (DSI) what might be new evidence

Yesterday it announced that it had obtained a copy of a contract signed between CAT and Hong Kong’s Hutchison Telecom for the former to purchase Hutch’s cellular network assets in Thailand in a deal worth Bt7 billion. This raises the question why the agreement was not proceeded with, and whether there was political interference.
The contract was signed six months before the Cabinet of the previous government in 2010 approved CAT’s withdrawal from its plan to purchase the Hutch network. Late that year, True Group stepped in to take over the network instead, leading to the present collaboration between CAT and True on third-generation cellular service.
ICT Minister Anudith Nakornthap said the copy of the CAT-Hutch contract was sent to the ministry by a person who requested anonymity. This person was a former CAT executive who signed the contract, he said.
There is a report that former CAT chief executive officer Jirayuth Rung-srithong met with Anudith last week. Jirayuth, who could not be reached for comment yesterday, is one of the former CAT executives involved in the 3G deals and is being questioned by the National Anti-Corruption Com-mission on whether the agreement affected state interests.
Anudith said the document raised a lot of questions.
“It is possible to believe that there was a political plan to pave the way for a private company to benefit from the failure to proceed with the contract.”
He questioned whether the failure to go ahead with the contract was in line with the conclusion of the ICT Ministry’s committee studying the legality of the CAT-True deals that there were five irregularities in the agreement. One was that there was a political plan to prevent CAT taking over Hutch’s network, which paved the way for True to step in.
At the time, CAT planned to take over the Hutch network in a deal worth Bt7 billion, but the then-ICT minister, Chuti Krairiksh, ordered the state agency to bargain for a lower price. Later CAT gave up its intention to buy the network, and the Cabinet in 2010 approved its withdrawal from the purchase. Then True stepped in.
Pol Colonel Pravesana Mulpra-mook, the DSI’s deputy director-general, said the probe would see progress within a month.