The controversial Klong Dan sewage treatment project has made headlines at regular intervals for the past three decades. News reports initially described the plant as a solution to water pollution, then as the "mother of all corruption cases," and now as a costly lesson.
The government has invested more than 20 billion baht in the Klong Dan project, which never came online, and will now have to pay almost 30 billion baht more to the builder NVPSKG in what has been described as a "stupid fee". ".
Senior politicians and officials have been convicted of wrongdoing in connection with the project, as have NVPSKG executives.
long and murky history
After Samut Prakan was declared a pollution control zone in 1994, Suwat Liptapanlop, then minister of science, technology and environment, lobbied hard to launch a major sewage treatment project in the riverside province. But before his initiative could gain passage, the House was dissolved for a general election.
So it was under Suwat's successor, Yingphan Manasikan, that the water treatment plan finally won the green light from Cabinet.
The initial project design included wastewater treatment systems on both sides of the Chao Phraya River, one in Bang Pu Mai and the other around Klong Bang Pla Kod. But in an unexpected twist, only one plant ended up being built, at a site in the Klong Dan sub-district. The cost of the project has also skyrocketed from the initial budget of 13.6 billion baht to 23 billion baht.
Irregularities involving powerful figures
Vatana Asavahame, an influential figure and powerful politician in Samut Prakan, was heavily involved in the initial stages of the project. Vatana was a former deputy minister of the interior, as well as a veteran of several other high-ranking posts.
In 2008, the Supreme Court's Criminal Division for Political Office Holders found Vatana guilty of abusing his authority by forcing land officials to issue title deeds to public land that was sold to the Klong Dan project at an inflated price. .
Vatana was slapped with a 10-year prison sentence in absentia after fleeing abroad. He is still a fugitive from justice.
Also in serious legal trouble were Pakit Kirawanich, former director of the Pollution Control Department (PCD), Sirithan Pairojpiboon, his former deputy, and Yuwaree Inna, who had headed PCD's Water Management Division. The trial court convicted them, but the charges were dropped on appeal. His case is now before the Supreme Court, but the final ruling has not yet been issued.
Builder fights for money while executives jailed
NVPSKG executives were also convicted of land title fraud in 2008 by final court ruling. They were slapped with fines and jail terms ranging from three to six years.
However, his conviction did not strip the NVPSKG of the right to demand payment for work performed on the project, which was 95 percent complete at the time of its cancellation in 2003. At that time, the NVPSKG had already received more than 20 billion baht in the government. money for salaries.
NVPSKG applied to the arbitration committee, which in 2011 ruled that PCD must pay the outstanding salary bill of more than 9 billion baht plus interest at 7.5 per cent per annum.
PCD refused to comply with the sentence alleging that the executives of the construction company also committed crimes. It has been applied to the administrative court. However, the Supreme Administrative Court ordered him to comply with the ruling of the arbitration committee on March 7 this year.
Huge 'stupidity fee'
Since the PCD fought in court for more than a decade after the arbitration committee issued its ruling, the department and the Ministry of Finance will now have to pay the 9 billion baht compensation, but also a huge bill of interests.
While PCD has the legal right to demand compensation from those convicted of corruption in the Klong Dan case, there is little chance that it will recover a large sum of money.
In 2020, the Central Administrative Court ruled that PCD's former top executives must pay over Bt10 billion in compensation to PCD. No payment has been made yet.
By Thai PBS World General Office
