Thailand: PTT furthers transparency

Thailand: PTT furthers transparency

National oil and gas firm PTT Plc will allow the National Anti-Corruption
Commission (NACC) to examine the company's internal investigation into the
latest Rolls-Royce bribery case to promote transparency, says president and
chief executive Tevin Vongvanich.

The move is the latest response to the US Justice Department's allegations
that PTT officials accepted bribes to buy Rolls-Royce engines.

PTT and Thai Airways International were both mentioned in regard to the case
last week.

PTT has set up an internal investigative committee consisting of company
members who have never been involved in procurement or auction processes in
order to ensure transparency.

The results of the investigation will be finalised within a month.

Mr Tevin said the PTT board has suggested the company allow the NACC to join
the investigation and take a role in the company's procurement to contribute
to a more transparent process.

Furthermore, middlemen or sales representatives and all agents will be
registered with the company before joining the procurement process, allowing
actions to be traced accurately.

Mr Tevin said the new measures and regulations are expected to be finalised
soon and will be applied at the auction of PTT's fifth gas pipeline
development project, which is due to open for bidding this year. The project
is worth an estimated 92 billion baht.

The gas pipeline project was designed to link gas supply between the eastern
and western regions and help avert disruptions at gas blocks in the Gulf of
Thailand while maintenance is taking place.

The development of the second unit of the liquefied natural gas (LNG)
receiving terminal, worth 23 billion baht, is due to be auctioned in the
second half of the year.

PTT is one of 50 firms that joined the Anti-Corruption Organization of
Thailand (ACT) in June 2011.

Last year, PTT applied ACT's model of transparent procurement by inviting
members selected by ACT to monitor the auction process for gas pipeline
compressor units in Ayutthaya's Wang Noi district.

According to PTT's report, over the next five years, PTT and its
subsidiaries will set aside nearly 900 billion baht for capital expenditure
towards business expansion.

Two new units, PTT Oil and Retail Co and Global Green Plc, are due to be
spun off for listing on the Stock Exchange of Thailand.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1188329/ptt-furthers-transparency

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com