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SRT to seek court injunction for Hopewell payment

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SRT to seek court injunction for Hopewell payment

By THE NATION

 

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Jirut Wisanjit

 

 

The Department of Land Transport’s director-general Jirut Wisanjit in his capacity as the president of the board of the State Railway of Thailand (SRT) said after the first board meeting on Wednesday (October 16) that the SRT board had received a report from the committee on the Hopewell case revealing that the Hopewell elevated highway and rail line project could have violated the law regarding foreign companies.

 

The committee is chaired by Pisak Jitwiriyawasin, deputy permanent secretary of the Transport Ministry.

 

“The report stated that the Announcement of the National Executive Council No. 281 required foreign companies to be qualified and approved by the Cabinet before conducting business in Thailand, which Hopewell was not,” said Jirut.

 

“Therefore, the SRT board agreed that SRT and Ministry of Transport will file a civil case against Hopewell in the Civil Court,” he said. “Furthermore, SRT will file an appeal for an injunction by the Supreme Administrative Court to temporarily suspend the court order for SRT to pay the compensation to Hopewell, which was originally scheduled on this Saturday (October 19).”

 

Source: https://www.nationthailand.com/news/30377466

 

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-- © Copyright The Nation Thailand 2019-10-17

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9 minutes ago, webfact said:

“The report stated that the Announcement of the National Executive Council No. 281 required foreign companies to be qualified and approved by the Cabinet before conducting business in Thailand, which Hopewell was not,” said Jirut.

 

I fail to understand why they were awarded the contract and allowed to start work if this is the case?

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I wonder if the SRT board members and politicians around at the time of signing the original contract are included in this new round of court action? I am sure there could be an argument put that they are jointly liable.

For good measure they could sue the SRT and Ministry of Transport as the authorising authorities.
........ Oh wait a minute....

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Could be that the actual government is in on the scam as they are nearing insolvency and can't pay Hopewell. 

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5 hours ago, webfact said:

“The report stated that the Announcement of the National Executive Council No. 281 required foreign companies to be qualified and approved by the Cabinet before conducting business in Thailand, which Hopewell was not,” said Jirut.

 

I find that hard to understand... so how was the contract signed & approved by who?

SRT clutching a very short straw !

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5 hours ago, rkidlad said:

For any company or persons looking to invest or do business in Thailand, this story should be a massive insight into how business is done here. Truly appalling. 

 

 

 

 

I trust the government.....I have been thinking of starting a gold mining company.......O-wait....

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6 hours ago, webfact said:

“The report stated that the Announcement of the National Executive Council No. 281 required foreign companies to be qualified and approved by the Cabinet before conducting business in Thailand, which Hopewell was not,”

  • The Hopewell Project was signed by MOTC (Mr. Montri Phongphanit) in the Chatichai Choonhavan government*, SRT and Hopewell (Thailand) Co.Ltd. (Mr. Gordon Woo) on November 9, 1990. 
  • Hopewell's critics have tried to paint the company as a carpet-bagger which took advantage of Prime Minister Chatichai Choonhavan's notorious casual and corrupt administration in the late 1980s to extract a vague contract containing no penalty clauses for late completion. https://www.scmp.com/article/65073/hopewell-fights-back-over-delayed-thai-rail-project

Note that the Hopewell contract operated under the Alien Business Act of 1972. I failed to find any details of the Act that would have required Cabinet approval of the Hopewell contact. Neither the MOT nor SRT cites any specific provisions of ABA in effect at the time of the contract award.

 

There is such a provision in the Foreign Business Act of 1999 that replaced the ABA for Cabinet approval for List 2 (ie., operation of public transport) and for MOT for List 3 (construction) businesses. Given the scope of the Hopewell contract to both construct and operate an SRT line, it's not clear (to me at least) that full Cabinet approval was required vs. MOT approval. But of course the FBA wouldn't apply to Hopewell contract award in any event and perhaps Pisak's blame for a faulty or unlawful contract is misdirected. 

 

The short of this story is that it appears that the MOT in 1990 knowingly approved the Hopewell contract and Hopewell proceeded with contract execution.

 

* On 23 February 1991, the Commander-in-Chief of the Royal Thai Army, General Sunthorn Kongsompong, and the generals of the Chulalongkorn Military Academy class 5 formed the National Peace Keeping Council to depose Chatichai's government in a coup d'état. They accused the elected government of massive corruption and abuse of power for its own advantage. https://en.wikipedia.org/wiki/Chatichai_Choonhavan

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Thais are NEVER wrong and if it does not work their way round then the scapegoat is alien, irrespective if form the East, West or anywhere else. 

This will certainly set new levels in dealing with Thai governmental contracts in particular and with Thais in general. Blood is thicker than water - that's how the saying goes! 

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meaning:  you farang company will lose money if you dare to invest

 

thailand was ok for a holiday destination long time ago

 

greed and corruption on every level

 

and a brainwashed low educated population is what thailand is, good for manual cheap labour and let's not forget ahum "tourism and temples" and what not...

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Oh, ahh, here we go again. Cui bono?

 

Let's see. Mmm. Perhaps, SRT doesn't want to pay (the amount due, or at all)?! 

 

How about SRT paying the full amount into an escrow account, to show good faith?

 

 

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