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Published on August 25, 2007

"I will need to consult the legal team, starting with the Office of the Attorney-General," acting president Kulya Pakakrong said yesterday.

She was uncertain if she had the authority to take drastic action against King Power International Group, the operator of the duty-free shops and retail areas at the passenger terminal.

"What if my action harms AOT? If I need to use my judgement, I'm entitled to seek counsel to prevent damage. If necessary, I may need advice from outside lawyers," Kulya said during an interview.

On Thursday AOT board spokesman Chirmsak Pinthong said the directors at their meeting earlier that day, including chairman General Saprang Kalayanamitr, had resolved unanimously to demand King Power vacate the new airport in "due time".

They agreed to file a petition with the Administrative Court and ask the National Counter Corruption Commission to take action against present and past officials.

A King Power public-relations officer said yesterday that chairman Vichai Raksriaksorn was on an overseas trip and not available for comment but several top executives, including group deputy chairman Chulchit Bunyaketu and group managing director Sombat Dechapanichkul, had discussed the concession terms throughout the day. Neither could be reached for comment.

AOT decided in March to cancel the duty-free and commercial-area management contracts with King Power after the Council of State said the deals did not conform to the Public-Private Joint-Venture Act governing state contracts with a company worth over Bt1 billion. The act requires any such project to undergo strict scrutiny.

King Power retaliated by filing lawsuits demanding compensation of Bt20.8 billion and Bt48 billion for losing the two concessions. The civil court set the first hearing for October.

The AOT board on Thursday renewed its talks on the duty-free problem with support from the findings of an outside committee headed by Pol General Pratin Santiprabhob. The committee was set up to investigate four issues, including the contracts with King Power.

Kulya admitted that since King Power had taken the matter to court AOT had done nothing aside from appointing a state attorney to represent it.

Since then, all revenues from the concessions that were supposed to go to AOT have been parked with the court. Those revenues now amount to over Bt1 billion, Kulya said.

Achara Deboonme,

Suchat Sritama

The Nation