Thailand: Siracha slams PTT pipeline deal

Thailand: Siracha slams PTT pipeline deal

A former chief ombudsman lashed out yesterday at the state auditor and the
Finance Ministry over their proposal that PTT Plc pay 32.61 billion baht in
compensation for the company's failure to return gas pipelines to the state.

Siracha Vongsarayankura, former chairman of the Office of the Ombudsman,
said he was opposed to the move and doubted the Finance Ministry and the
Office of the Auditor-General (OAG) were protecting the public interest.

According to Mr Siracha, the state energy giant owed 68 billion baht to the
state.

The company only returned three large pipelines and a few other smaller
structures, worth approximately 16.2 billion baht, to the Finance Ministry's
Treasury Department. He said the outstanding balance stood at 52 billion
baht, not 32.61 billion as proposed.

His criticism came after the state audit agency and the Finance Ministry
discussed the compensation and agreed that 32.61 billion baht should be paid
for the property.

No money has been paid as yet. However, the pipelines would be listed as
"rented" assets of PTT, which would be required to pay billions of baht in
rent.

The proposal was said to be pending cabinet consideration and if it is
approved, it could put an end to a legal dispute between the Office of the
Ombudsman and PTT in the Administrative Court.

Last year, the Office of the Ombudsman lodged a complaint with the
Administrative Court demanding PTT Plc return all gas pipelines to the
state.

The pipelines are considered national assets and were laid down by the state
before the firm was partially privatised in 2001.

The agency accused PTT Plc and 10 others of failing to comply with a 2007
ruling by the Supreme Administrative Court that it return offshore natural
gas pipeline land plots to the state in 2007.

The lawsuit included the Ministries of Finance and Energy, former ministers
Piyasvasti Amranand, Wanarat Channukul, and Korn Chatikavanij, and former
PTT Plc head Prasert Bunsumpun.

The Office of the Ombudsman launched a probe in 2012, after the
Administrative Court dismissed a petition by activists complaining about the
matter on the grounds they were not directly affected.

The OAG and the Finance Ministry were not available for comment.

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Link to Original Article:
http://www.bangkokpost.com/news/general/1190977/siracha-slams-ptt-pipeline-d
eal

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com