The Bangkok Mass Transit Authority (BMTA) is considering scrapping its bus purchase deal with Bestlin Group in the wake of a customs tax evasion scandal.
The authority is seeking advice from the Office of the Attorney-General (OAG) over possibly scrapping the contract based on concerns over the Customs Department's claim the buses were shipped from China, said BMTA director Surachai Eamvachirasakul.
If the Customs Department officially rules that the buses originated in China and not Malaysia, the BMTA cannot accept the buses, he said.
This is because the delivery contract signed with Bestlin requires that the buses to be imported from Malaysia.
Mr Surachai said the legal questions surrounding the bus-procurement scheme are expected to be cleared up soon.
Bestlin won the bid to supply 489 new natural gas vehicle (NGV) air-conditioned buses to the BMTA by Dec 29 this year, but the first batch of 100 buses was impounded by customs authorities at Laem Chabang port in Chon Buri for alleged customs tax evasion.
The Customs Department accused Super Zara, which handles the import procedures for Bestlin, of manipulating the procedures to make the buses appear as though they were manufactured in and imported from Malaysia, in order to reap a tax-exemption benefit based on Asean's free-trade agreement.
The company was advised to pay 370 million baht in taxes and fines so the 100 impounded buses could be released.
Weerapong Wongwaen, chairman of the BMTA labour union, said the union is expected to examine the bus purchase and delivery contracts next week in order to ensure transparency.
He urged the Customs Department to conclude its inquiry into customs tax evasion allegations as soon as possible to make sure the bus delivery plan will not be affected.
"The department should wrap up the inquiry and point out what the company did wrong. It should also conclude the figure the company is required to pay so the buses can be released," he said.
Meanwhile, the Bangkok city council is expected to decide next month if the Bangkok Metropolitan Administration (BMA) will operate the southern extension of the Green Line skytrain which stretches from Soi Bearing to Samut Prakan.
Pirapol Thawornsupacharoen, deputy transport permanent secretary, said the BMA needs approval from city councillors to proceed with its plan to run the 12.8km extension.
If the BMA is to run the service, it is required to pay the Mass Rapid Transit Authority of Thailand (MRTA) 3.5 billion baht as part of the takeover deal worth 21 billion baht.
The sum is for the MRTA's costs on land ownership transfer, consultants, and various fees in the project's construction. In the long term, City Hall is required to pay 17.5 billion baht for loans taken out to finance the project.
The extension was financed by the MRTA and negotiations for the payment are under way to allow for the transfer of the project's operation.
Mr Pirapol, who chairs a committee on the transfer of assets between the BMA and the MRTA, said if the city council decides otherwise, the issue will be settled by the Commission for the Management of Land Traffic (CMLT) chaired by Deputy Prime Minister Somkid Jatusripitak.
He said the committee will submit a report on the details involving assets, debts, payments and legal obligations to the CMLT in January.
A source at the MRTA said the agency has considered a number of options if the transfer deal does not go through.