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Mon, February 12, 2007 : Last updated 8:40 am (Thai local time)



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Home > National > BMA's 1st payment suspended





FIRE-TRUCK SCANDAL
BMA's 1st payment suspended

City asks bank to pay till corruption probe is completed

The Bangkok Metropo-litan Administration (BMA) yesterday asked Krung Thai Bank (KTB) to advance money for the first instalment of payment due for the controversial deal to purchase fireboats and fire trucks from an Austrian supplier.

The Bt6.68-billion deal is now the subject of a corruption scandal due to alleged overpricing.

An investigation panel under Assets Examination Committee (AEC) is set to conclude its probe into the deal by February 19.

The latest high-profile figure linked to the scandal is Interior Minister Aree Wongsearaya.

The first instalment of the payment, about Bt845 million, must be made on Monday through the bank. The BMA has to pay 40 per cent of the first instalment, while the central government is responsible for the rest.

Although the Cabinet agreed to pay its part, the BMA yesterday said it would suspend its payment pending the probe.

"We hope KTB will cooperate with our request," Deputy Bangkok Governor Panich Vikitsret said. If the probe clears the deal the BMA will pay KTB, he added.

However, if corruption is proved and the purchase agreement is cancelled, KTB will be legally entitled to retrieve the money, he said.

In a related development, Democrat Party executive Yuthapong Charassathien yesterday met with the AEC investigation panel's chairman, Prasert Boonsri, to submit more evidence about Aree's alleged role in the scandal.

Yuthapong accused Aree of suspiciously pushing for the Cabinet's approval to pay the first instalment of the deal to the supplier, Steyr Daimler Puch.

Since last month, Yuthapong has complained that Aree appeared to have pressured the BMA to accept the fireboats and fire trucks at the centre of the deal.

"If we refuse to pay, the government will sustain more damages," Aree said yesterday, adding that the Cabinet's approval of the first-instalment payment would not acquit anyone of wrongdoings.

Mayuree  Sukyingcharoenwong

The Nation








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