Suvarnabhumi » New AOT board to sue King Power
Sunday, July 20th, 2008
The board of Airports of Thailand (AOT), newly assigned by Thai military government, is preparing to file a lawsuit with the Administrative Court to seek a court order to scrap the commercial development contract of King Power International Group at Suvarnabhumi airport. AOT board member and spokesman Chirmsak Pinthong said after yesterday’s board meeting that King Power was found to have violated and evaded the law governing private participation in state projects in its bid to win the right to carry out commercial development of the airport’s passenger terminal.
The law requires in-depth and time-consuming procedures in selecting contractors for any state projects priced at one billion baht and over.
The board has ordered the AOT management to seek urgent advice from the Council of State, the government’s legal arm, in order to prepare a lawsuit against King Power. The council is expected to give a reply in a week.
Mr Chirmsak said there was a scheme that purportedly put King Power’s investment at Suvarnabhumi at less than one billion baht in order to evade a long selection procedure.
The AOT board under Thai military goverment also found that King Power has occupied more space than it was contractually allowed. The firm’s excessive commercial development inside the terminal is blocking direction signs and fire escapes. The offence could justify termination of its contract, he said.
Also, King Power built a two-storey restaurant named Garden City adjacent to the domestic wing of the terminal although the contract did not permit such construction, said Mr Chirmsak.
The restaurant was approved by a revenue sub-committee of the previous board and then acting AOT president Bancha Pattanaporn although they had no authority to do so, he added.
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