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Copyright © International Chamber of Commerce (ICC). All rights reserved. ( Source of the document: ICC Digital Library )
The elected governor of Bangkok, Apirak Kosayodhin, is under pressure to explain his role in a row that has broken out concerning the Bangkok Metropolitan Administration's (BMA's) purchase of fire-trucks and boats last year.
Kosayodhin effectively sanctioned the controversial deal when he opened a letter of credit (L/C) that ensured the transaction took place.
Trucks for chickens
The row centres on a barter deal in which the BMA apparently agreed to import Austrian-made fire-trucks and boats from Vienna-based Steyr Daimler Puch, which in return would buy Thai boiled chickens into Austria.
Allegations emerged earlier this year that the trucks were overpriced and that both the trucks and the boats were built by a Thai firm. The chickens meanwhile allegedly never reached Austria.
Special investigators
The furore has prompted a probe by Thailand's Department of Special Investigation (DSI).
A team of investigators is to visit Austria soon in an attempt to establish exactly how much the equipment cost and to study the contracts in detail.
L/C sanctioned
Kosayodhin's political opponents say the governor of Bangkok should have known the details of the deal because it was he who sanctioned it.
The contract apparently stipulated that the deal was not effective until the L/C was opened. The governor opened the L/C 10 January 2005, and the deal became effective on 21 January.
Politically motivated
Kosayodhin's Democrat Party supporters meanwhile say he is not to blame. Democrat deputy leader Alongkorn Pollabutr argues that former top officials should take the rap. He has threatened to sue former Bangkok governor Samak Sundaravej and former interior minister Bhokin Bhalakula.
Steyr Daimler Puch appears to be trying to defend its trading position in Thailand. Top company executives say they do not understand the objectives of the investigators' visit to Austria and reportedly say the row is motivated by personal or political agendas.
This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.