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Published on December 20, 2007

Former Tourism Authority of Thailand Governor Juthamas Siriwan has threatened to sue the US Justice Department if it implicated her in a bribery scandal involving two Americans who won contracts to manage the 2004 Bangkok International Film Festival (BIFF).

Juthamas denied any involvement and insisted the selection of the organiser was carried out in accordance with the rules and laws. However, because of the allegation, she will tender her resignation from the Puea Pandin Party and not run as a candidate for a Bangkok seat in the election.

"All the procedures involving the case were done according to the regulations and with fairness and transparency among all agencies concerned. I have already contacted the company in Los Angeles and found that some employees were fired for unknown reasons. I believe those cases were caused by internal conflicts inside the company," she said at a press conference yesterday.

She insisted the case was a matter for the US and had no direct link to Thailand.

The National Counter Corruption Commission said it was gathering information on the case and might seek more data from the US, NCCC member Klanarong Chantik said yesterday.

He said the anti-graft agency would meet to determine whether it had authority in the matter. He said he believed it could investigate as it involved allegations of bribery.

The US Justice Department said on Tuesday Gerald Green, a Los Angeles-based businessman, and his wife Patricia had been arrested for paying US$1.7 million dollars (Bt52 million) in bribes to a Thai government official in return for the $10 million contract to manage the 2004 BIFF. This violated the US Foreign Corrupt Practices Act (FCPA).

The criminal complaint was filed in Los Angeles on December 7. The Federal Bureau of Investigation (FBI) investigated the issue in 2006.

The department's statement said the Greens set up a company, Film Festival Management, in 2003 to bid for the BIFF contract. The Greens were awarded festival management contracts for three years from 2004 to 2006. Between 2003 and 2007 the Greens allegedly funnelled cash to a Thai tourism official who used the money to influence the awarding of the contracts for the film festival, which is run by the TAT.

In an affidavit to the case, a number of companies were used in receiving and wiring money to a number of accounts in the United Kingdom, Singapore and the Isle of Jersey. Some of the companies share a similar office address.

Neither Juthamas' name nor the recipient of the alleged bribes were identified in the statement. The FBI affidavit occasionally used the term "the Governor" and "the Governor's daughter". A number of companies were alleged to have been the  originators of 41 wire transfers from May 2003 to October 2006 to the recipient who was identified as "the Governor's daughter".

Juthamas served as the TAT governor from 2001-2006. Earlier, under her tenure, TAT was involved in a scandal involving over Bt100 million in debts to CNN and print publications for the worldwide advertising of the Thailand Privilege Card. The ads were aired and printed without a contract.

Meanwhile the TAT will look into the allegations. An investigating committee will be chaired by the deputy governor for international marketing, Juthaporn Roengronasa.

TAT Governor Phornsiri Manoharn said the committee will investigate how many TAT projects have been awarded to the Greens.

"In fact I have heard about this before and I reported it to Tourism Minister Suvit Yodmani in October when the FBI directly informed us of the case," Phornsiri said.

TAT indeed awarded the Greens the 2007 film festival contract but after Phornsiri took office last December she cut the Bt200 million budget and awarded a contract worth Bt70 million to a Thai organiser.

According to the US Justice Department, the Greens were alleged to have conspired with others to bribe a senior Thai official who was then the president of the BKKIFF and the governor of TAT.

"As a result of her position at the TAT, the governor was able to influence the awarding of the BKKIFF contracts as well as other TAT contracts. More than US$1.7 million in payments were allegedly made for the benefit of the governor," it said.

The couple also owned and operated SASO Entertainment and Flying Pen, which were alleged to have received contracts from TAT through the Greens' relationship with the TAT official. Patricia Green was their president. SASO won the marketing rights for the Thailand Privilege Card while Flying Pen was contracted to produce calendars and a book on Thailand.

Gerald Green was also alleged to have arranged contracts between TAT and other US businesses, in return for large "commissions" that, in part, went to "the Governor".

 The Nation