Court grant injunction to Khlong Toei vendors

PAT, affirming that the lease auction was transparent, just and good for the fresh market's development, said it would launch a public relations campaign to create better understanding among stakeholders.

Bangkok Senator Rosana Tositrakul said legislative committees were calling in the company to provide information and gathering evidence of the violent incidents and the alleged injustice both in the lease and in real practice.

However, Legal Professional insisted the auction was legal and the problems and violence were caused by those standing to lose out from this change in operators.

Janjira Na Nakhon, a leading protester, said the Committee for Abuse of Authority Scrutiny had asked Tha Reu police to explain their apparent reluctance to provide the vendors justice and security. While reaffirming that the protesters would keep blocking the road, she said at least 100 vendors had signed subcontracts with Legal Professional out of fear they would have no place to sell their goods.

She said such subleases exploited the vendors because, for example, the yearly rent of Bt49,000 did not include fees. They also stated that if a government agency or PAT wanted to use a certain part of the market area during the lease, an expropriation order would be issued and both the firm and the vendors would have to cooperate without demanding compensation or benefits from the other side.

"So the vendors could be driven out anytime. This is unjust," she said.

The lease that PAT made with Legal Professional was very accommodative to the firm, Janjira said, citing the small daily fine of Bt1,000 if the firm failed to develop the place as per the proposed plan and details within a 180day period ending in April.

Article 12.12 of the lease allowed PAT and the government to end the lease at anytime on grounds of national security, public safety or government order, she said.

The lessee would be notified in writing and not have the right to claim for damages or projected profits, she said.

Since PAT won't do anything after seeing that many vendors were suffering here, she urged the new government to look into this case.

Fewer people shopped at the market now for fear of a bomb attack and the protesting vendors also had to hire a professional cameraman to stand by 24 hours a day to record any incident as evidence for the assault lawsuits, she said.

Pichet Mangkhong, assistant to PAT's director for business management, said the auction was transparent and followed legal procedures.

The Pollution Control Department had urged PAT to arrange for a wastewater system to be installed at the market or face a Bt7,000 daily fine, but the old company neglected to do this so. Then PAT opened up the opportunity for other companies to take over management, without eliminating the old company from reapplying.

Of the six bidders, the highest was Legal Professional. It offered Bt613 million over the 10year term, or about Bt61 million per year, which was five times more than what the old company paid.

The bid winner must improve shops, wastewater system and infrastructure to make this marketplace more hygienic.

"I don't understand why there's a protest when we did everything by the rules. We had asked the old company to join the bid but they didn't come. The five bidders who lost didn't complain," he said.

Legal Profession has 180 days to formulate and implement a market management plan and, if any shops have to be removed, the firm must provide the vendors another space to use during the renovation, he said.

To address concerns about rents going up after the renovation, PAT has hired an advisory company to study the appropriate rates. PAT explained what had been done and sped up a PR campaign to ensure the public's good understanding of the case.

Rosana said the vendors were requesting protection from the Civil Court against the firm's implementation of its market management plan. She said the problem was because the firm claimed that those who failed to sign within the designated period had given up their rights to the spaces and even had intentions to scrap the lease auction.

She said the Senate public participation committee was summoning Legal Professional to testify, while three to four other committees to which the vendors had appealed for help would soon hold a meeting on what they could do in this situation, which was deteriorating with the violence and prolonged protest.

Thammanat Phrompao, managing director of Legal Professional, said the firm was saddened by the violence, which the company had nothing to do with.

He said the company had won the bid and signed the lease with PAT on October 29. Since it was still in the middle of the 180day period until next April, it had no reason to create chaos causing many injuries, he said.

"The group of people losing benefits from the company's market management has tried in many ways to stop Legal Profession from performing as per the contract, so the company filed a police complaint against these people and the court has issued an order," he added.