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Published on August 13, 2007

An Assets Exam-ination Committee (AEC) member yesterday warned the Bangkok Metropolitan Administration of "consequences" if it pays another Bt743 million for

fire-fighting equipment purchased in an allegedly corrupt deal.

The administration has set aside the money for a second instalment for the Bt6.68 billion purchase.

Committee member Kaewsan Atibodhi yesterday warned anyone arranging payment could face consequences.

"In the past, you might have argued that you didn't know the deal was mired in so much corruption. But now the probe has come to this point and you still want to pay ... does this mean you think the contract for the deal is legitimate?" Kaewsan said.

He was responding to reports Bangkok Deputy Governor Wallop Suwandee was preparing the additional payment to Austrian supplier Steyr-Daimler-Puch.

A committee panel headed by Prasert Boonsri earlier concluded there were grounds to believe five former and incumbent officials acted corruptly in preparing the fire-vehicle purchase deal, estimated to have cost taxpayers Bt1.9 billion too much.

They are former interior minister Bhokin Bhalakula, his deputy Pracha Maleenont, his assistant secretary Somsak Khun-ngern, former Bangkok governor Samak Sundaravej and administration senior officer Police Maj-General Atilak Tanchukiat.

"If you are confident you should pay the second instalment, you must be ready to take the consequences," Kaewsan said yesterday.

The committee has already told the Prasert subcommittee to review its probe into the allegedly scandalous deal to determine if more officials were involved.

Kaewsan said the panel must look into a counter-trade agreement, considered part of the purchase.

"We have to check whether Austria has bought agricultural produce from Thailand in accordance with the counter-trade agreement," he said.

Democrat Party member Yuthapong Jarassathien said the counter-trade agreement - between CP Merchandising and the Foreign Trade Department - was not about exports to Austria but cooked chicken meat to several countries.

Meanwhile, incumbent Bangkok Governor Apirak Kosayodhin yesterday insisted the fire-vehicle contract remained in force and the payments must be made.

"If the final ruling concludes the deal is mired in corruption, the purchase contract becomes invalid. We can then cancel the contract and get a refund," Apirak said.

He said the administration had informed the supplier it reserved the right to take the money back.

Another Bangkok deputy governor, Panich Wikitset, said it deposited the Bt743 million in a Bangkok Bank account. The bank prepared the letter of credit.

"So far, the bank has yet to transfer the money to the supplier," Panich said.