The unofficial winner of an auction for 15,000 tonnes of old rice is likely to be disqualified after the Public Warehouse Organization (PWO) detected several irregularities, according to a source at the Ministry of Commerce.
The PWO has yet to announce the official winner of the June 17 auction because it is still checking the qualifications of V8 Intertrading Co Ltd and the other bidders.
Specifically, concerns have been raised about the finances of V8 Intertrading and possible connections with a political party or a major company, said the source.
V8 Intertrading has registered capital of 2 million baht, yet it posted the highest bid at 286 million baht, or 19.07 baht per kilogramme, for the rice left over from the disastrous rice-pledging programme of the Yingluck Shinawatra government a decade ago.
The source said the PWO expects to finish its examination soon after it receives the required documents, adding that Commerce Minister Phumtham Wechayachai has been informed about the reasons for the delay in announcing the winner.
After the examination is complete, the PWO will announce which companies are not qualified and will begin negotiating with the remaining bidders, said the source.
The second- and third-highest bids came from Sahathan company at 18.69 baht a kilogramme and Thanasan Rice at 18.01 baht.
According to the source, the rice sale was perceived as linked to politics, so the commerce minister wanted the PWO to clear up any suspicions.
Mr Phumtham has faced criticism for attempting to sell the rice, with some questioning whether it is safe for human consumption. Critics have also said the auction was merely a gesture to show the public that the government is capable of recovering some of the money lost by one of its predecessors.
The losses caused by the corruption-plagued pledging programme run by the Yingluck government have been estimated at 500 billion baht.
If V8 Intertrading is disqualified and the other bidders cannot offer a higher price, the PWO is confident the sale can still generate reasonable revenue and the agency will not face any lawsuits.
Earlier, Mr Phumtham said that no matter how much he wanted the sale to be closed as soon as possible, he must ensure a transparent process and give the PWO to look into the matter.
The ministry initially planned to announce the winner on July 4.
“It should be completed soon. It doesn’t matter who won the auction but there must not be any legal complications. I’ll hold a press conference when it’s done,” Mr Phumtham said.
Eight companies expressed interest in purchasing the rice and submitted their qualifications for initial examination. Seven of them, including V8 Intertrading, were qualified to take part and six submitted bids.
Because of public doubts about V8 Intertrading’s financial status and its possible political or big-business connections, Mr Phumtham ordered the PWO on June 24 to investigate, and the announcement of the outcome was delayed twice.