Contractor denies fraud in Bt3-bn police projects

FRIDAY, MARCH 08, 2013
Contractor denies fraud in Bt3-bn police projects

In its first statement to criminal investigators, construction company PCC Development and Construction has dismissed two charges of fraud and violation of a law against rigging of bids for government projects, a senior Department of Special Investigation

The three executives representing the firm said subcontracting the projects to others, which was prohibited in the deal with the Royal Thai Police, was not an act of fraud. It was merely deployment of other constructors to handle the projects. 

"The RTP had been notified of this all along," said Phibool Udonitthikul, to reporters after completing three-hour hearing.
 The two charges have embroiled PCC in civil proceedings stemming from the delay in the police accommodation projects at 396 police stations across the country The contract is worth more than Bt3 billion. 
But the case has also been linked politically to Democrat Party leader Abhisit Vejjajiva and executive Suthep Thaugsuban, who were in charge of it when in power during the previous government.
 Phibool said he would make a further statement on the rigging allegations in the next session, because documents to clarify their defence were not ready for presentation to the DSI. The firm has also been accused of securing the project by tabling an unusually-low bid, below the median price.
 He repeated his claims that the delay in the work resulted directly from the RTP's own belated handing over of project sites to PCC. Phibool said the 40-year-old company had 12 affiliates worth up to Bt5 billion. The nonpayment of the money to other constructors was because it could not claim the money from the RTP while it was undergoing reshuffles of officers during the transfer season last September.
 Phibool said if the RTP extended the contract for another six months, more than 100 projects could be completed. He also claimed that much-delayed dismantling of old police accommodation was the responsibility of RTP and dismantlers - not PCC's.
DSI senior interrogator Thawal Mangkhang said more than 100 project sites had been handed to PCC, but the remainder, numbering about 200, had not been. “The company could not answer why the work at the 100 sites has not been completed,” he said.
At press time yesterday evening, Thawal said he would propose a freezing of Bt400 million belonging to PCC in an account at a bank in Chiang Mai, where the company was based, during the ongoing DSI investigation. The money-freezing must be approved by DSI director-general Tharit Phengdit.