Airports of Thailand is expected to seek the Attorney-General's advice following a Council of State ruling its duty-free services and commercial-area management contracts with King Power International Group are unlawful.

The Council of State has ruled the contracts violate the law and must be nullified.

A member of the National Legislative Assembly's committee on Suvarnabhumi controversies, who asked not to be named, said it was up to the Office of the Attorney General if further action was to be taken against King Power.

"It's clear that King Power violated legislation governing public-private joint ventures. With the value of the projects exceeding Bt1 billion [contracts] must be struck based on the legislation - meaning it needs Cabinet review and approval," he said.

King Power chairman Vichai Raksriaksorn was unavailable for comment yesterday. He had insisted earlier the company complied with the law. He said the previous board of AOT chaired by Srisook Chandrangsu resolved the contracts did not need to be struck under public-private joint-venture law.

The committee source said it was prepared to request an Assets Examination Commission (AEC) investigation of Srisook, former prime minister Thaksin Shinawatra, then transport minister Suriya Jungrungreangkit and Vichai.

Srisook faces AEC scrutiny over other Suvarnabhumi Airport controversies. Thaksin and Suriya have been implicated in a bomb-scanner purchase scandal.

AOT acing president Kulya Pakakrong said the board would decide how to proceed today. She was among AOT personnel notified of the council ruling on March 19. Its review was based on the Joint Investment Act which states projects in excess of Bt1 billion must include depreciation and contract terms.

"AOT would need to thoroughly recalculate the investment value if it exceeds Bt1 billion, based on the actual commercial areas. We would need to ask the board for an opinion of how to mitigate damages," she said.

The committee source said King Power apparently tried to keep the projects' value below Bt1 billion. It excluded inventories from the duty-free-services contract and included depreciation in the commercial-area-management contract.

"Last year, the previous AOT board asked the Council of State three times in one year if inventories should be included in project value and depreciation excluded. The body said yes to both. However, the board approved the deals," the source said.

According to the source, the AOT board commissioned an advisor to value the projects. In the duty-free-services contract it stipulated the project value at Bt813.83 million over five years and for 5,000-square-metres.

However, he noted, the actual contract life was 10 years and duty free space 11,820-square-metres. Inventory value was excluded from the contract.

The advisor calculated the commercial-space contract at Bt846.62 million over 10 years for 20,000-square-metres. However, the source said the actual space was 25,828-square-metres and depreciation was included to reduce its value.

Meanwhile, the AOT board chaired by General Saprang Kalayanamitr will reconsider 58 procurement contracts worth Bt507.14 million.

Of these, 32 worth Bt186.44 million were struck before the opening of Suvarnabhumi Airport. The remaining 26 worth Bt320.7 million were signed after the airport opened.

Kulya said the board would consider if AOT should pay for the purchases and if payments should be changed from agreed levels.

An AOT source noted many of the 58 procurement contracts were not approved by the board and awarded without bidding.

Srisook awarded 24 while former president Chotisak Asapaviriya awarded 11, he said.