BMA's expansion of contract violates the JVC Act : Govt spokesman
Play
The Bangkok Metropolitan Administration could face criminal punishment for expanding the Skytrain concession without following proper procedures, as it contravenes the Public-Private Joint Venture Act, deputy government spokesman Anusorn Eiamsa-ard said y
Krungthep Thanakom Co, the investment arm of the city, last week signed the Bt190-billion contract for BTSC, a unit of BTS Group Holdings Plc, to run the Skytrain system until 2042.
BTSC was awarded a 30-year operation and maintenance |contract for the 5.25-kilometre |On Nut-Bearing extension to |the Skytrain’s Sukhumvit Line and the 7.5km Saphan Taksin-Wongwian Yai and Wongwian Yai-Bang Wa extension to the Silom Line.
Anusorn said Bangkok voters might have to elect a new governor sooner than expected, as this project was likely tainted with corruption.
Deputy Transport Minister Chatchart Sitthipan had studied the project and found that the concession extension must conform to the Public-Private Joint Venture Act of 1992, he said.
The private sector could join the project by purchasing the rolling stock, but if a project involving the private sector is worth more than Bt1 billion, it must come under the Act, he said.
The Council of State had ruled in June 2009 that if the Mass Rapid Transit Authority of Thailand wanted to hire the private sector to operate the Wong Wian Yai-Bang Wa extension or even invest in train carriages in exchange for payment, they still had to follow the act’s procedures, he said.
BTSC’s procuring additional carriages and the city paying them back later should also follow the Act, he said.
Article 6 of the Act states that if an agency developing a project wishes to get the private sector involved, it must submit a study and analysis, as per the National Economic and Social Development Board’s criteria, to the responsible ministry, in this case the Interior Ministry.
Then a committee of various agencies will be set up to ensure transparency and public benefit.
Avoiding the regulations could constitute a violation of Article 157 of the Criminal Code, he added.
Amorn Kitchawengkul, managing director of Krungthep Thanakhom, went to Parliament House and said he came to talk to a senior figure of the Democrat Party, who was interested in the Bt190-billion contract.
The firm was gathering documents to submit to the party soon, he said. Although he didn’t know when the Pheu Thai Party would ask the Administrative Court to suspend this contract, he insisted that the project was transparent and could be checked.
A City Hall source said the administration wasn’t worried about the Pheu Thai Party’s plan to petition the Administrative Court because the city was confident that their information and documentation could pass scrutiny.
The source also said Pheu Thai wanted to make this case a political issue to attack the BMA before the Bangkok gubernatorial election early next year.
