'Bring case to Thailand'

Office of the Attorney-General says Walter Bau must approach a Thai court if it wants to pursue compensation

The Office of the Attorney-General (OAG) yesterday challenged the German construction firm Walter Bau to bring the investment conflict case over Don Muang Tollway to a Thai court to enforce the compensation awarded by an international arbitration tribunal.

"If they really want compensation, they should bring the case to a Thai court. There is so much Thai government property here," said Attorney-General Julasing Wasantasing.

"The arbitration tribunal awarded the company two years ago, why haven't they brought the case to a Thai court for enforcement? Why ask the German court to enforce the case and seize the royal plane?" he asked.

The investment conflict has turned into a war of words between Thai and German officials since German insolvency officials seized a Boeing 737 used by HRH Crown Prince Maha Vajiralongkorn while it was parked at Munich Airport in southern Germany this month.

The move was aimed at forcing the Thai government to pay compensation owed to the company. The German regional court of Landshut decided last week that the plane could be released only after the Thai government paid a ¤20-million (Bt850.8 million) deposit, but the government refused.

The OAG will file a lawsuit against Germany for unfair seizure of the plane, Julasing said, but declined to disclose whom he would sue, on what grounds, when or where. "If they are still bothering us, we have to do something to pay them back," he said.

On July 1, 2009, an international arbitration panel in Geneva made a final judgement in favour of Walter Bau. The Thai government was ordered to pay ¤36 million in damages to the company for breaching obligations set out in the tollway contract. The decision was final.

Walter Bau brought the matter before the US District Court in New York on March 26 last year, seeking enforcement of the award in the United States. That court ruled in favour of Walter Bau, but the Thai government appealed on July 28 last year against the decision.

The company also brought the case to a German court in Berlin asking for enforcement of the arbitration tribunal's decision. The case is now under consideration, Julasing said, adding that he would bring a key witness to the trial to prove that the international tribunal mishandled the case.

Thailand had a witness who was very familiar with the investment contract from the beginning, but the international arbitration tribunal refused to take this witness into account and made an unfair judgement against the Thai government, Julasing said.

"If the German court in Berlin learned about this key witness, I believe the court would agree with Thailand that the tribunal made the wrong decision on the case," he said. "Therefore enforcement to compensate the company would be impossible." The Berlin court has asked both sides to submit documents and evidence for its consideration by August 16, he said.

The OAG also filed a case at the Thai Administrative Court asking it to terminate the international arbitration tribunal's decision.

The Primary Administration Court forwarded the case to the Supreme Administrative Court for consideration, he said.