He said cross-examination of the Mor Chit project would set an example of how public investment should proceed with transparency.

The Finance Ministry has planned to amend two pieces of legislation - the State Enterprise Privatisation Act and Public-Private Joint Venture Act - to prevent the exploitation of loopholes in the laws, as witnessed in the Airport Link project.

The planned Bt20-billion Mor Chit development would be set up on the old public bus station opposite Chatuchak Park.

"New public projects must be closely scrutinised in order to protect the public interest and to ensure good returns of investment," Chalongphob said yesterday.

He spoke after meeting with senior officials who represent the Finance Ministry on boards of directors of state enterprises and corporations.

Prime Minister Surayud Chulanont's government has faced a dilemma because, in trying to impose good governance, its policies would inevitably delay public spending.

The failure to accelerate public investment could result in low investment, lower economic growth and a low level of government credibility.

Earlier, former ministers used the loopholes of the Public-Private Joint Venture Act by interpreting the law to enable ministers to have a final say on big project from Bt1 billion onwards, in spite of the intent of the act to ensure that big projects should be screened by Cabinet's members.

Chalongphob said the interim government would try to amend the Act because it currently had many loopholes that politicians could exploit at the expense of public interest.

Previous governments had proceeded with investment carelessly, resulting in the waste of public funds and failure of the projects, he said.

Although the current law requires ministries to ask permission from the Cabinet if any project is worth more than Bt1 billion, politicians did not follow the rule strictly but tried to overrule it.

For example, the Airport Link project should have been scrutinised by the Cabinet if the former transport minister had strictly followed the rule, he said.

Chalongphob said former ministers had interpreted investment law with ill intent.

Therefore, to prevent a repetition of the controversy, the law should be changed.

He said the Finance Ministry would try to set good example by asking the NESDB to evaluate the investment return of the development at Mor Chit.

The project has been delayed for years after the public bus station was relocated to a new site.

The planned investment cost is estimated to be about Bt20 billion.

Previously, the ministry planned to develop a shopping centre, transport hub and residential complex on a site currently used for park-and-ride services for the Skytrain at Mor Chit.

Chalongphob said the new law would apply to new projects.

The interim government would also change the law to improve the privatisation process, he said.

Chalonphob blamed the previous government for hastily privatising state enterprises.

Thaksin Shinawatra's government wanted to list state enterprises on the stock market without putting in place an independent regulator first, he claimed.

Wichit Chaitrong

The Nation