Results of auction of 10-year-old rice delayed by investigation
Top bidder V8 Intertrading faces criticism over apparent irregularities, Commerce Ministry reveals
The auction of a stock of 10-year-old rice is at risk after an investigation into V8 Intertrading revealed several irregularities.
A news release from the Ministry of Commerce provides an update on the auction of 15,000 tonnes of rice from the government stockpile, which has been in storage for 10 years. Currently, a detailed examination of the six companies that submitted bids is under way.
In the auction last month, V8 Intertrading offered the highest price at 19.07 baht per kilogramme, amounting to more than 286 million baht. It even submitted a letter to increase the bid to 19.073 baht per kilogramme.
However, V8 Intertrading has faced continuous criticism regarding its registered capital, working capital, and possible nominee status for other companies.
As a result, Phumtham Wechayachai, deputy prime minister and commerce minister, decided to delay the announcement of the highest bidder.
The Public Warehouse Organisation (PWO) was instructed to review all six bidding companies thoroughly, gathering information from relevant departments to ensure their operations comply with legal standards.
After the PWO reports the findings to Phumtham, the results will be announced, including which companies failed the inspection. Negotiations for the rice price will then resume with the remaining companies.
The PWO has already provided some preliminary updates to Phumtham. The delay in announcing the winning bidder is due to awaiting confirmation documents from relevant agencies, ensuring transparency and preventing future issues.
An in-depth investigation into V8 Intertrading indicates irregularities, suggesting it may not be selected as the winning bidder.
Sources at the Commerce Ministry emphasise that this rice auction has become a political issue. Phumtham insists on a thorough process to ensure accountability to the public, which has contributed to the delay.
Even if V8 Intertrading is disqualified, it is believed that if the PWO negotiates with the other bidders, whether the price is lower or higher, the revenue will still be substantial. This should ensure that there is no criticism or legal consequences following the auction.
After V8 Intertrading, the next-highest bid was from Sahatan Co Ltd, at 18.69 baht per kilogramme, with Tanasan Rice Co Ltd offering 18.01 baht per kilo, and the sixth-place bid being 12.20 baht per kilo.
