The controversy in Thailand over a barter deal triggered by a letter of credit (L/C) looks set to die down after an Assets Scrutiny Committee (ASC) panel agreed the deal was lawful.

The panel has formally exonerated former commerce minister Watana Muangsuk for his part in the barter deal when it found that the exchange of Thai boiled chickens for fire trucks from Austria in 2004 was lawful.

No irregularities

The ASC sub-panel investigating the Bangkok Metropolitan Administration fire truck purchase found no irregularities in the barter trade agreement and said the deal was in line with commerce ministry regulations.

The probe found that the Charoen Pokphand Group had exported boiled chicken and shrimp worth US$133 million (about 5.9 billion baht) to Austria in exchange for 315 fire trucks and 30 fire-fighting boats from the Austrian manufacturer, Steyr.

Official involvement

Questions had been raised over the role of several officials in the barter deal. Watana was commerce minister in the Thaksin Shinawatra government.

His government was frequently challenged with allegations of corruption and conflicts of interest, amongst other things.

L/C legally binding

The ASC sub-panel is expected to announce the result of its probe into Bangkok governor Apirak Kosayodhin in September.

Apirak opened a L/C for the purchase but has consistently argued that he did not want to do so and had to authorise the credit to comply with the terms of the purchase contract, which was already legally binding. Opening the L/C was only a step in the process of fulfilling obligations under the contract, he maintains.

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