Interior Ministry must make BTS decision: DSI

THURSDAY, MAY 24, 2012
Interior Ministry must make BTS decision: DSI

A final decision from the Interior Ministry on whether the Bangkok Metropolitan Administration has authority to extend the BTS Skytrain contract is key in determining which agency had legitimacy in the matter, Department of Special Investigation directorg

“And if the ministry cannot sanction this now, there needs to be a legal standard on whether this should be decided by the ministry or a minister, before conditions for, and profits from, the extension can be taken into account,” he said.
Tharit said no legal interpretation or decision had been made by any government agency on whether the BMA’s extended control of the BTS, via a new contract signed between the BMAestablished Bangkok Thanakom Co Ltd and original concessionaire Tanayong Joint Venture, was legitimate.
Commenting on the legal aspect, Tharit said the 30year extension worth Bt187 billion was voided under the Civil Code by the original (and current) contract.
Deputy Bangkok governor Theerachon Manomaiphibool yesterday testified before the House committee on suppression of corruption, saying that the extension of the operation by Bangkok Thanakom was legal because it was not a private company but a state enterprise established and 99.9percent owned by the BMA.
He said also the extension was not a further concession granted, but a hiring to continue operating the BTS service. The extension in question was actually for a 13year period, he said, to follow on from the current contract’s remaining 17 years ending in 2029.
Asked by Pheu Thai Party panel members why the extension had been granted for so many years ahead, Theerachon replied that legal problems could arise if the agreement for the 13year extension were made after the original contracted ended.
The 13year extension would also save Bangkok residents Bt6 million in tax, he said, adding that the BTS service overall would make more than Bt100 billion in profit over the 30year extended contract.