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Published on October 19, 2007

It accused the media of "distorted facts and groundless allegations", saying in a statement it suspected disgruntled rival companies that missed out on the deal were behind the controversy.

The embassy said the 96 BTR-3E1 models to be delivered to Thailand were "well-known as one of the world's most well-equipped APC".

"Only the latest technological solutions have been used for the design and production of this APC that do not yield to any world's analogues, and, in some aspects, like dynamics and firing characteristics, as well as armour strength and tyre bullet-proof capacity, even exceed them," the statement said.

The Thai Army and Defence Ministry had verified "the quality of the Ukrainian production line and APCs in recent visits to manufacturing facilities and viewed live demonstrations in the Ukraine last May," it said.

Controversy over the Bt4-billion deal arose recently when then deputy permanent secretary at the Defence Ministry, Admiral Bannawit Kengrien, created a stir by refusing to endorse the procurement and delayed the approval process.

A leading security expert, Chulalongkorn University's Associate Professor Panitan Wattanayagorn, also voiced concern, saying the Army would be better off purchasing a higher quality APC that had a proven record.

The Auditor General's office also raised questions about after-sale agreements, and how the Ukrainian bid "got around" the bidding procedure.

Defence Minister Boonrawd Somtas vowed yesterday to cancel the purchase if the ministry's probe found corruption.

He said the panel was looking at observations by the Auditor General's office, which alerted the Defence Ministry to irregularities in the bid.

The letter said Ukrainian firm NGV did not submit its bid within the deadline but still managed to win the deal. This prompted speculation it was able to outline terms that would be preferred over rival bids.

But Deputy Prime Minister General Sonthi Boonyaratglin, who was Army chief when the deal was done, insisted the process was transparent. He said there were no irregularities when he was Army chief.

"Just one suspicious document was brought into the media spotlight. No corruption could be carried out during my term. The purchase procedure for the APCs was in accordance with the law,'' he said.

Sonthi said he assigned then Assistant Army Commander Anupong Paochinda, who was responsible for military logistics, to take charge of the purchasing. "He knows everything. Ask him," he said.

Sonthi said he sent a colleague of current Army chief Anupong to the Ukraine to check claims that the APCs were old models.

"He went to see if there was a factory producing the vehicles. He came back saying there was a factory. They were new and we are going to buy them for Bt25 million each. We used to buy APCs from some countries at Bt80-90 million [per vehicle].

"Everything has been carried out in a fair and straightforward manner."

The Nation