BMA 'must pay' for graft-vehicles
- Published: 2/02/2009 at 08:57 PM
- Online news: Breakingnews
The Bangkok Metropolitan Administration (BMA) has been told that it could neither revoke the scandal-marred fire trucks and boats procurement contract nor could it suspend the payment of instalments to the contractor, said a BMA source.
The BMA had earlier asked the Office of Attorney-General (OAG) for advice on whether there was a way to revoke the contract or if it could cancel the endorsed letter of credit (L/C) and stop making the payments.
The source said the OAG recently responded by saying that the City Hall could do neither of them.
Bangkok Governor MR Sukhumbhand Paribatra will hold a press conference tomorrow (Tuesday) to explain what he plans to do next with the case.
The payment of the fifth instalment is due on Feb 11.
MR Sukhumbhand Paribatra had earlier said that the BMA would ask the Krung Thai Bank to suspend the payments without waiting for the Office of Attorney-General's response.
The City Hall had asked the OAG if it should keep on paying after the National Anti-Corruption Commission concluded that the contract needed to be revoked.
It has so far made four of the nine payments, amounting to 3.91 billion baht, for the 6.69-billion-baht contract signed with Austria's Steyr Co in 2004. Its next instalment is worth 790 million baht.
MR Sukhumbhand said on Monday that his deputy, Malinee Sukkhavejcharakij, who supervises the Office of Disaster Prevention and Mitigation, has already submitted a report suggesting the suspension of the fifth instalment.
However, he said he needs a few days to go over the legal issues before deciding whether the suggestion should be followed.
The city governor said he is ready to face a civil lawsuit by the Austrian company for canceling the procurement contract.
He said he was aware of the BMA's problems before entering the governor election race and would do what he considered was best for the BMA and the public.
About the author
- Writer: Bangkokpost.com
