The second and third compensation instalments, worth Bt2.9 billion each, were due to be paid on May 21 and November 21 this year.

The Supreme Administrative Court earlier ordered the state to comply with an arbitration panel’s ruling in favour of the NVPSKG consortium, which won the controversial contract back in 1997.

The first compensation instalment was therefore paid.

Citing the Criminal Court’s verdict on December 17 last year, AMLO yesterday issued a directive to freeze the payment of both the second and third instalments and asked NVPSKG to prove that the contract had been secured in an honest manner, after the court ruled that senior government officials had conspired with politicians to commit fraud in the massive Bt23-billion wastewater management scheme.

Construction of the Klong Dan facilities was completed, but they were never used due to a number of problems.

Police Colonel Sihanart Prayoonrat, acting AMLO chief, said the AMLO committee’s freezing of compensation payments followed a conclusion that there had been extensive corruption in the project from the outset, including in the project’s design, bidding and implementation. He said NVPSKG had now been given 30 days to prove its case, after having earlier received payment of the first compensation instalment.

He stressed that the government was not defaulting on its payment commitments because it now had the December ruling by the Criminal Court, even though the Supreme Administrative Court had earlier ruled in favour of compensation being paid.

20-year jail terms

In the Criminal Court verdict, Pakit Kiravanich, former director-general of the Pollution Control Department, his deputy chief and other senior officials were sentenced to 20-year jail terms for corrupt practices in connection with the private firms that won the contract.

In addition, Vattana Asavahem, a fugitive ex-deputy interior minister, was earlier sentenced to 10 years’ imprisonment in connection with the project, which had caused massive damages estimated at more than Bt33 billion to the taxpayer.

Based on the Criminal Court verdict, the contract signed with private firms was ruled null and void due to the conspiracy involving state officials, politicians and other parties to cause public damage.

Sihanart said the AMLO committee would also take action to recover the first instalment of compensation already paid to the private firms, and would seek compensation for damages of more than Bt20 billion for the unused facilities.

Justice Minister Paiboon Koomchaya said the government would wait until the Supreme Court reached a final verdict on the case before deciding on the compensation issue, while Deputy Premier Wissanu Krea-ngam said he had no comment to make on the matter, especially with regard to the government’s position on seeking compensation.