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Copyright © International Chamber of Commerce (ICC). All rights reserved. ( Source of the document: ICC Digital Library )
High-ranking politicians are among five people to be investigated by Thailand's Assets Examination Committee for alleged involvement in a scandal that hinged on an official opening a letter of credit (L/C).
The official who opened the L/C however now appears to have been exonerated.
Scandal
The fire-engine corruption scandal has become something of a cause célèbre in Thailand. It essentially involvesa barter deal in which the Bangkok Metropolitan Administration (BMA) agreed to import Austrian-made fire-trucks and boats from Vienna-based Steyr Daimler Puch, which in return would import Thai boiled chickens into Austria.
Allegations then emerged that the trucks were overpriced and that a Thai firm built both the trucks and the boats. The chickens meanwhile allegedly never reached Austria.
Suspects
Investigators say they have enough grounds to open a full investigation into five people, including three politicians, for their parts in the scandal.
Local media says the five were former interior minister Bhokin Bhalakula, his deputy Pracha Maleenont and Pracha's assistant Somsak Kun-ngern, former Bangkok governor Samak Sundaravej and the former Bangkok Fire and Rescue Department chief Atilak Tanchukiat.
Kosayodhin cleared
Apirak Kosayodhin, meanwhile, Samak's successor and the current Bangkok governor, who has often been linked to the case, will escape investigation according to local media because the purchase was made before he took up his post.
He was under investigation because his accusers said he effectively sanctioned the controversial deal when he opened an L/C that ensured the transaction took place. (DC World News, 3 May 2006).
Kosayodhin has staunchly defended his role in the scandal, maintaining his management of the deal was transparent and he was ordered to authorise the L/C by the interior ministry. (DC World News, 13 July 2006).
This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.