Court overturns massive compensation ruling for Klong Dan project

Based on the arbitration panel’s 2003 and 2011 rulings, the PCD was earlier required to pay compensation of Bt4.98 billion, and another US$31 million (Bt972 million) plus 7.5 per cent annual interest, to Klong Dan Marine and Fisheries Co and the NVPSKG joint venture. 
The ruling was made in accordance with the Klong Dan wastewater treatment project’s contract, which was approved by the Banharn Silapa-archa government in 1997. However, the PCD later petitioned the Central Administrative Court to review the case on the grounds of new evidence emerging from subsequent verdicts issued by the Supreme Court, Criminal Court and a lower court showing that the whole project had been deemed unlawful because it violated multiple relevant laws.
Former officials of the PCD were also accused of violating state rules and regulations and a Cabinet resolution with regards to the procedures for selecting qualified bidders and contractors for the massive project, as well as the project’s land procurement.
The contract’s wording, which was approved by the Office of Attorney-General, was also illegally changed.
These unlawful acts resulted in significant damage to the state. However, Klong Dan Marine and Fisheries Co and the NVPSKG joint venture would stand to benefit by claiming massive compensation from the PCD via the arbitration panel set up to settle disputes between government agencies and private companies.
As a result, the Central Administrative Court said it had the authority to nullify the arbitration panel’s earlier ruling, which favoured the private companies at the expense of the state, in order to maintain law and order.

Conspiracy alleged
The corruption-ridden Klong Dan wastewater treatment scheme was approved in 1997 when Banharn Silapa-archa was prime minister. Several former politicians were involved in the controversial scheme, which was situated in Samut Prakan province near Bangkok.
A former minister, Wattana Asavahem, was sentenced to a 10-year jail term for violating the Criminal Code while in office in connection with issuing unlawful land title deeds used in this scheme. He remains a fugitive.
New evidence from court verdicts showed that former politicians and businessmen as well as PCD and other state officials conspired to cheat the state in the scheme and attempted to force the government to pay massive compensation to the companies, which were controlled and owned by them.
The Central Administrative Court also said the PCD had the right to ask the court to review the case since it was directly affected by the arbitration panel’s ruling.
Court spokesman Pravit Boontiem said the private firms had 30 days to lodge an appeal with the Supreme Administrative Court.