The Transport Ministry on Friday decided not to ask the Administrative Court to investigate shareholdings in the Hong Kong-based Hopewell after the company made a last-minute offer to negotiate hefty financial compensation owed by the Thai government.
The turn of events took place as the ministry's legal team visited the court to lodge a petition over allegedly suspicious shareholding in Hopewell (Thailand).
Nitithorn Lamluea, who heads the ministry's legal team, said a decision had been made to defer the petition.
"We changed our mind after the transport minister's aides told us Hopewell offered joint talks to find a solution," Mr Nitithorn said.
"We'll not petition the court until we know the results of the negotiations between the ministry, the State Railway of Thailand [SRT] and Hopewell," he added.
According to an informed source, the lawyer had planned to sue officials at the Department of Business Development for allowing Hopewell to register its subsidiary company in Thailand despite questions over its shareholdings.
The lawsuit is the latest bid by the Transport Ministry to reduce its financial liabilities after losing a lawsuit and being ordered to pay Hopewell (Thailand) total compensation of 25 billion baht.
On April 22, the Supreme Administrative Court ordered the ministry and SRT to pay 11.8 billion baht, plus 7.5% annual interest for terminating a contract to build the 60-kilometre Hopewell elevated highway and railway in northern Bangkok in 1998.
Then came the allegation that Hopewell (Thailand) might have violated the terms of reference in signing the contract over two decades ago if its shareholders were out of step with Thai law.
Transport Minister Saksayam Chidchob claimed the amount of Hopewell shares held by foreigners or their Thai proxies might have exceeded the Thai legal limit at the time of the contract signing.
Chirute Visalachitra, the newly appointed chair of SRT's board, on Wednesday asked whether ministry officials had failed to submit Hopewell (Thailand)'s shareholding structure to the cabinet when it was asked to approve the deal two decades ago.
The Hopewell project was given the green light during the administration of Chatichai Choonhavan, when Montri Pongpanich was transport minister.
The contract was signed on Nov 9, 1990.