Prime Minister Yingluck Shinawatra has rejected a request by the police for another 900 million baht to continue the delayed construction of 396 police stations, and asked for a more detailed proposal.
At Tuesday's cabinet meeting, Ms Yingluck instructed the Royal Thai Police Office to coordinate with the Comptroller General's Department, the Bureau of the Budget, and the Department of Public Works and Town and Country Planning to come up with a more comprehensive proposal and budget request, said Lt Sunisa Lertpakawat, deputy government spokeswoman.
Lt Sunisa quoted Ms Yingluck as saying the rejection was to ensure that state budget was used in the most appropriate and prudent manner.
The premier wanted to know how much construction work had been completed by the failed contractor, PCC Development and Construction Co, and whether money paid to the company was in line with the progress made in the project.
She also wanted the police to include figures on financial compensation due to the government from PCC for its delayed work, and how much money would be left, Lt Sunisa said.
A source who attended the meeting said the police claimed they needed 900 million baht because the costs of materials and labour had increased significantly.
Public prosecutors on Tuesday postponed for the second time a decision on whether to to indict three PCC executives over the police station construction scandal. A report by the the Department of Special Investigation (DSI) on June 13 was submitted to the Office of the Attorney General on June 13.
The suspects are PCC Development and Construction (PCC) executives Paiboon Udomsithikul, Wisanu Wisetsing and Jaturong Udomsithikul.
The executives, and the company itself, are accused by the DSI of fraud, resulting in more than 90 million baht in losses to the state.
The RTPO hired PCC for 5.848 billion baht to build the stations between March 26, 2011, and June 15, 2012. The completion deadline was extended three times due to natural disasters, including flooding.
The latest deadline fell on March 14 this year, but the company failed to complete the project as required.
Thirty-two plaintiffs have lodged a complaint with the DSI against PCC.