Italian-Thai Development, Japanese Partners(Nishimatsu), Corruption and Lazy Thai Media

Japanese contractor allegedly bribes Thai officials


By The Nation


A former executive of Nishimatsu Construction Co. has told Japanese prosecutors that the Japanese general contractor paid more than 400 million yen or Bt125 million in 2003 to Thai government officials. Kyodo News Agency reported Monday.


What the lazy and worthless Thai media won't tell you is that it was actually Italian-Thai Development Company that was the local managing partner in the contract.


From The Nation(a routine company report published back in 2003:


Italian-Thai development has informed the Stock Exchange of Thailand that its joint venture firm, Nishimatsu Construction Co Ltd, has signed a contract with the Bangkok Metropolitan Administration to construct a BMA flood protection tunnel. The contract is worth Bt2.09 billion. The company holds 51 per cent in the joint venture firm.


Italian-Thai Development seems to be a busy little company when it comes to being knee deep in corruption scandals.

I think some of us may remember Italian-Thai's role in the CTX scanner controversy, which also encompassed another case of a foreign company and corruption in Thailand. Notice the name of the Japanese companies who are Italian-Thai's junior partners.

An excerpt from an archived story from The Nation:

The Suvarnabhumi Airport scandal follows what appeared to be a simple contract award following a tendering process early last year. In March 2004, ITO Joint Venture, jointly owned by Italian-Thai Development Plc, Takenaka Corp and Obayashi Corp, was awarded the Bt4.3-billion contract to install Suvarnabhumi’s baggage-handling system by New Bangkok International Airport Co Ltd (NBIA). Under the 566-day contract, ITO agreed to build 22 kilometres of conveyor belts inside the passenger terminal. Redesigned to meet higher security standards following the September 11 terrorist attacks, the belts were to be the first in the world to have in-line explosives-detection screening. Twenty-six CTX 9000 machines made by InVision Technologies Inc were selected to do the job. Without an office in Thailand, InVision appointed Patriot Business Consultants Co Ltd as its local distributor to deal with ITO. According to Transport Minister Suriya Jungrungreangkit, the deal went through smoothly until GE Infrastructure and InVision Technologies came up with a merger plan. It was during consideration of the merger plan by US authorities that price discrepancies in InVision’s foreign dealings were picked up and, in July, InVision said the US Justice Department and the Securities and Exchange Commission might launch an investigation into alleged violations of the Foreign Corrupt Practices Act by its distributors. The act bars US firms from paying bribes to obtain business abroad. GE and InVision could not merge because their agreement stated that acquisition could not proceed if there was “any pending or threatened investigation by a governmental authority” that could lead to criminal sanctions, penalties or fines. The allegation of improper payments made to government officials and politicians in three countries – China, the Philippines and Thailand – followed. InVision voluntarily disclosed to the agencies “possible offers of improper payments” by its foreign distributors during June 2002 through June 2004. But while the sales to China and the Philippines involved only two machines each, in Thailand, it was a matter of 26 machines. InVision said in its admission that it began competing for the Suvarnabhumi sales no later than 2002. From at least January 2003 through April 2004, it had been aware of the high probability its distributor intended to fund any “gifts or offers” out of the difference between the price the distributor paid to InVision and the price for which it resold the machines to the end user. In April 2004, ITO Joint Venture agreed to purchase the machines, and Patriot quoted the price of US$46 million (Bt1.8 billion), which was $10.2 million, or Bt404 million, above InVision’s price. It remains a mystery why ITO was given the higher price for the machines and where the Bt404 million was to go.


Wait, there is more, not only is Italian-Thai Development linked with the corruption involving the BMA tunnels, the airport scanners, and the cracks in the airport, but it was also a major player here:


Italian-Thai: Ua Athorn contract Italian-Thai development yesterday signed a contract to build six Baan Ua Athorn low-income projects worth Bt9.6 billion for the National Housing Authority. The six projects will be located in Lat Krabang, Phutthamonthon 4 and 5, Setthakij 1, Ratthanathibate, and Rang Sit Krong 1. They are slated for completion within 18 months.


And read what happened recently:

AEC indicts ex-minister for bribery

Published on January 8, 2008


The Nation

The Assets Examina-tion Committee yesterday indicted eight individuals for corruption relating to Bt1.2 billion in kickbacks over construction of the UA Athorn housing project.

They included former social development and human security minister Watana Muang-sook, his aide Mana Wongpipat and former MP Arisman Pongruangrong.

The remaining suspects are business executives allegedly involved in bribery and money laundering to secure the contract.

"Of the 15 contractors for the UA Athorn project, eight have been linked to the Bt1.2 billion in bribes and evidence has clearly shown that the minister and his middlemen demanded and received kickbacks," AEC member Kaewsan Atibhodi said.

The shitty and worthless Thai media would love to make the Nishimatsu story about the Japanese bribing BMA officials during Samak's tenure as governor in order to bring down Samak's government.

The bigger story is Italian-Thai Development Company.

Why is Ital-Thau part of every single major corruption scandal in Thailand, costing the Thai taxpayers billions of baht, yet the Thai media is silent about it.

I wonder how much advertising money the Thai media rakes in from Ital-Thai, because their silence on Ital-Thai's crimes is deafening.

The Thai media loves to harp on corrupt government officials(that they never name or expose) that it only reports on when a foreign government indicts, yet never, and I mean never investigates corrupt Thai corporations linked to the government.

I have just uncovered a major story here.

Will the Thai media do anything about it? Nope.

Will the Thai media keep allowing Ital-Thai to get away with its criminal behavior in exchange for advertising cash? Yes.

Bangkok Post/Daily News: ASC's term extension is the right move

ASC's term extension is the right move

Daily News Editorial

The Surayud government has done the right thing by extending the term of the Assets Scrutiny Committee (ASC). This is proof of the government's determination to get to the bottom of alleged corruption in the previous administration. The ASC has worked very hard since it was set up in the wake of the Sept 19, 2006 coup that removed prime minister Thaksin Shinawatra from power.

Its task is crucial because the alleged corruption was one of the four reasons cited by the military to topple Mr Thaksin. Members of the public, therefore, have been keeping a close watch on the ASC's work.

Prior to the government's decision, members of the National Legislative Assembly (NLA) had pushed for an extension of the ASC's term, which was originally set to end on Sept 30 this year.

The ASC will now stay on until the government's term ends. This will give the ASC more time to conclude its investigations and send all cases to the public prosecutor.
The cases against the previous administration are complex. Without strong evidence, these cases would be rejected by the prosecutor.

With more time, the ASC can build up a strong case against alleged wrongdoers. So far, the committee has wrapped up its investigation into the Barn Ua Arthon housing project for the poor, and alleged tax evasion in connection with the Shin Corp sale.

If the alleged wrongdoers are prosecuted, it will send a strong signal to corrupt politicians. It will serve as a deterrent for those who may want to engage in corruption. This will benefit Thai politics in the long run.


I wonder why nobody ever brings up the fact that the ASC was ruled illegal by the Supreme Court after the last coup

Also, I can't help but notice that the "usual suspects" who were at the roots of the '91 coup and many of the corruption problems pre-97 crisis are coming out of the woodwork for another shot.

Banharn
Chavalit
Snoh
Sanan

Plus, all of Thaksin's allies and underlings will right back in the mix once again.


ASC is supposed to be a deterrence to corruption?

Maybe next life in the afternoon.

IHT finally reports on Bangkok Airport

Cracks, leaks, corruption: Amazing Thailand

BANGKOK, Thailand: The taxiways are cracked, the terminal has leaks
and some airlines even wonder whether it's safe to fly into Thailand's
new international airport.

Bangkok's sleek and modern Suvarnabhumi Airport, which opened to
great fanfare in September, was supposed to transform the Thai capital
into Southeast Asia's leading air hub. To say it's had a rocky start
would be an understatement.

Critics at home have derided the new airport as a national
embarrassment and as a monument to the alleged corruption of deposed
Prime Minister Thaksin Shinawatra. Thaksin, whose administration handed
out most of the airport's building contracts, was ousted in a coup just
days before Suvarnabhumi opened Sept. 28.

Last week, the IHT was referring to Thailand as the teflon country, because no matter how much it screws up, Thais never seem to face any consequences.

2 billion Baht missing in AOT/King Power Shenanigans

AOT blamed

Airports of Thailand has caused some Bt2 billion in damage to the country from granting the duty-free concession at Suvarnabhumi Airport to the King Power International Group, a National Legislative Assembly panel said yesterday.

Pathompong Kesornsuk, chairman of the panel investigating the AOT-King Power contract, said that in its bid, King Power had proposed an additional Bt2-billion benefit to AOT if it won the duty-free concession, aside from the minimum benefit sharing of Bt1.43 billion in the first year.

Pathompong said the Bt2 billion never appeared after the concession was awarded. The subcommittee will summon Vuthipan Vichairat, the AOT director who chaired the panel that named King Power, in order to find out where the money is. - The Nation.

I hope Khun Pathompong keeps up the good work and exposes these bastards

More Airport Shark Jumping

Scoop journalist vindicated


Let's welcome Thaksin back at Suvarnabhumi

Airport-danger probe plea


Rescue plan for airport


Pipes bursting at Suvarnabhumi Airport

Bangkok's Suvarnabhumi Airport plagued by cracked taxiways


Funny that there are so many stories about the airport, which is good, because the Thai media could cover up everything until there was a major disaster.

However, I think it is interesting that nobody has named names in any of these stories.

Who built the airport? Who is responsible for the problems? And why aren't they being held accountable?