Bangkok Post
May 14, 2003

Crucial player pulled out of deal, says the Pollution Control Department.

Fraud charges have been laid against the contractor of the controversial wastewater treatment project in Samut Prakan for falsely using the name of a British company that pulled out of the venture before the contract was signed.

The Pollution Control Department (PCD) yesterday filed charges against VPSKG, the consortium building the 23-billion-baht wastewater treatment plant in tambon Klong
Dan, a fishery hamlet in Samut Prakan. VPSKG won the contract in 1997 as a conglomerate then comprised of North West Water International Ltd, Prayoonvisava Engineering Co Ltd, Vichitbhan Construction Co Ltd, Si Sang Karn Yotah (1979), Krung Thong Engineers Co Ltd, and Gateway Development.

North West Water pulled out in July 1997, however, one month before the contract was awarded. “But the consortium duped the PCD into believing North West was still a partner of the group,” said Natural Resources and Environment Minister Praphat Panyachartrak.

Pollution control chief Apichai Chvajaroenpun yesterday filed a complaint with the Crime Suppression Division after investigators alleged the consortium had swindled the state
for years.

The panel alleged the consortium violated the contract from the outset. The contract requires wastewater treatment expert North West to remain in the consortium after
construction commenced, but the consortium continued to use the name of North West without the company’s consent in opening an account and billing the state for 16 billion
baht.

The 16 billion baht also included 1.9 billion baht for land acquisition. The credibility of North West as a recognised wastewater management expert reportedly helped five local
contractors win the contract despite having only highway construction experience.

Consortium executive Sukree Thirakul declined to comment. Cabinet has approved a budget of three million baht for the investigative panel to continue its work, which includes
gathering data at the construction site as well as making overseas trips to countries such as the Philippines where project creditor Asian Development Bank is located.

Mr Praphat said more than one million baht had already been spent in the inquiry. The additional funding would be used to cover new expenses, he said.

The minister earlier this year assigned Pol Lt-Gen Noppadol to undertake the investigation. Gen Noppadal yesterday said some senior state officials, among others, may have been involved in inflating the cost of the project.

Another panel is looking into project feasibility as well as evaluating a project contract between the government and a construction consortium.

A team led by Thailand Environment Institute president Thongchai Panswad is evaluating environmental impacts. Local villagers have voiced fears the wastewater facility may be harmful to their nearby mussel farms.