Thai Harbour Officials Declared Guilty of Gross Corruption by Phairath Khampha 27 August 2002 Thailand's National Counter Corruption Commission on August 5, 2002 found 19 senior transport officials, mostly from the Harbour Department, guilty of malfeasance causing serious damage to the state, in an unsuccessful multi-billion baht project to import three dredgers from the United States. According to the NCCC secretary-general Klanarong Chantik, the Harbour Department contracted Ellicott Machine Corporation International from the US to build three dredgers with 28-inch soil pipes at US$49.4 million. The contract was signed on September 30, 1997, by Wit Worakupt, the then director-general of the department. Ellicott demanded six instalments with the first one worth 15% of the contract price and the sixth scheduled when the department accepted the dredgers. The financially ailing contractor subsequently failed to complete the dredgers but the department had already paid US$42.7 million worth of five instalments and a separate sum for spare parts. The graft commission found Mr Wit, now retired, guilty of serious malfeasance, as he excluded Ellicott's guarantees for the second, third and the fourth instalments from a draft contract scrutinised by the Office of the Attorney-General. As a result, the department had no guarantees to seize in the event of the contractor failing to deliver the dredgers. He also made out a separate contract for the payment of spare parts and paid 15% in advance to the contractor. Six other officials were found guilty of malfeasance for having advised Mr Wit on the matter. They were Thawanrat Onsira, Fuang Panichakit, Khachorn Tesamasa, Pinit Chaowicharat, Chokechai Putpradit and Wilawan Siri-ngarmpen. More wrongdoers were found during the implementation of the project. According to the NCCC, the Harbour Department paid the second instalment for three main generator engines of the Caterpillar 3406 series although contracted to be actually delivered were six dredge pump engines of the Caterpillar 3516A series. Each unit of the 3516A type is several times more expensive than such a generator engine. As a result, the NCCC found serious disciplinary mistakes and criminal offences against Jong-arch Pothisunthorn, then chief of the department and currently a deputy permanent secretary for transport and communications, and four inspection members. They are Sanchai Kulpreecha, Prawet Rakpan, Wichet Pongthongcharoen and Panya Songcharoen. Two other inspection members: Charnchai Chuenchoei and Danai Sripitak, were found guilty of serious malfeasance only, as they were once absent from a meeting with the first four members who accepted the engines. However, both later signed their names to endorse the engine acceptance. For the fifth instalment, the department was originally required to pay it only after Ellicott delivered the dredgers, three support ships and pipe floats to Thailand. The instalment constituted 20% of the contract price. However, officials concerned amended the contract as Ellicott proposed. The amendment divided the fifth instalment into three parts: 9% of the contract price for the delivery of pipe floats, 6% for support ships and 5% for dredgers. The NCCC found the action favoured Ellicott and damaged the department, which otherwise would have benefitted from interest if the whole instalment remained longer as a deposit. Responsible for the amendment were Jong-arch, Sanchai, Prawet, Wichet, Panya, Danai and Itthipol Kanchanakit, whom the graft commission blamed for serious malfeasance and criminal offence. Four other officials were blamed for malfeasance for making comments in support of the amendment. They are Veerayut Sinsiritrakul, Miss Thiamjit Amatayakul, Surachart Chalermnam and Miss Sumontha Thongpaet. All the concerned guilty parties received handsome consideration from Ellicott to carry out the duties in the corrupt manner in which they were found guilty. Big fish still off hook - Graft busters urged to nail politicians Thailand's graft agency had not done enough in its probe into irregularities in the failed dredger purchase project, since no politicians were nailed, said a political activist who instigated the investigation. Veera Somkwamkid said the agency's finding that 19 senior transport officials were guilty of malfeasance in connection with the multi-billion baht project might help reduce corruption in the government sector to some extent, but it was unlikely to lead to the scourge being wiped out. A legal loophole existed which made it virtually impossible for the National Counter Corruption Commission to nail the politician in charge of the project, he said. ``An investigation against the politician concerned has to be sought by the damaged party, the Harbour Department in this case. In practice, no officials would dare make such requests against politicians,'' he said. Mr Veera urged other activists and the media to push the graft agency to deal with the case thoroughly and come up with the right conclusion. ``Corruption is so clear in the dredger project as a considerable body of evidence has been left behind,'' he said. Democrat MP Alongkorn Polabut, who also had called on the graft commission to look into the dredger purchase deal, said on August 6 that the state should be able to bring corrupt politicians to justice by looking for evidence of corruption from the contract-signing stage until the implementation of the project. The contract was signed (on Sept 30, 1997) when Gen Chavalit Yongchaiyudh was the prime minister and Pinit Charusombat a deputy transport minister supervising the Harbour Department, the MP said. Deputy Transport Minister Pracha Maleenond, now overseeing the department, and Wanchai Sarathoonthat, the current department chief, also should be held responsible because one instalment payment was made during their terms without a dredger being delivered, Mr Alongkorn said. The government must bring those corrupt officials to justice and force them to pay for the damage caused to the state as a result of the failed project, amounting to over a billion baht in taxpayers' money, he said. Mr Pracha said his ministry would consider disciplinary action against the officials found guilty of malfeasance by the NCCC within 30 days, adding that he was not worried about Mr Alongkorn's complaint against him.