THAI bribery probe faces statute of limitations hurdle

TWO NATIONAL anti-corruption agencies are investigating an alleged bribery scandal involving Thai Airways International (THAI)’s purchase of engines from the British engineering giant Rolls-Royce.
The National Anti-Corruption Commission (NACC) needed to expedite the probe as the statute of limitations for certain cases were likely to expire soon, NACC member Preecha Lertkamolmart said yesterday.
Meanwhile, the Auditor-General’s Office has begun investigating the alleged bribery, Auditor-General Pisit Leelavachiropas said yesterday.
He told Isra News Agency that the findings from its own probe would be compared with Britain’s Serious Fraud Office (SFO) inquiry.
“The SFO findings were presented during trial by [British] court so they are convincing. We will have to determine who took the bribes,” the auditor-general was quoted as saying.
At yesterday’s NACC meeting, the agency’s foreign affairs office reported to commissioners about an inquiry by the SFO, which alleged that Rolls-Royce had bribed Thai government officials and Thai Airways employees, according to Preecha.
The SFO probe found that Rolls-Royce made payments totalling US$36.3 million (Bt1.3 billion) in three separate instances between 1991 and 2005 to agents working with THAI, a substantial portion of which was destined for airline representatives and local officials to secure lucrative orders for Rolls-Royce engines.
The SFO inquiry found that Rolls Royce paid $18.8 million in commissions to Thai government officials between 1991 and 1992, another $10.3 million to THAI staff between 1992 and 1997, and $7.2 million more to government officials and THAI employees between 2004 and 2005.
Thailand is among seven countries named by the SFO as being involved in the bribery scandal, which has been admitted by Rolls-Royce executives.
Preecha said yesterday that the NACC would request information from THAI for initial findings of its investigation.
He noted that the suspected wrongdoings took place during three periods – 1991-1992, 1993-1997 and 2004-2005. The 20-year statute of limitations had expired for the first period, and was about to expire for the second period, he said. 

“As for the third period, the statute of limitations is not over yet but we have to hurry,” he added.
The national carrier said yesterday that a “special task force” had been set up to investigate the alleged bribery. 
The panel is chaired by Niruj Maneepun, adviser to the company’s president.
THAI will “gather information from all the sources in order to investigate the matter thoroughly”, its statement said. 
“When all facts have been compiled and reviewed, the airline will determine appropriate actions to take on any corruption found in accordance with the law and the company regulations.”
Another committee has also been formed and chaired by Pichait Riengvattanasuk, THAI’s vice president for risk management development, to rectify any flaws in the procurement process in order to ensure there would be no irregularities or bribery involving company employees in the future, its statement |said.
Meanwhile, an aviation expert who is a former THAI executive said yesterday that the national flag carrier did not need to deal with middlemen as it could deal directly with engine-makers, adding that there are only a few major engine-makers in the market. 
In a related development, Pramon Sutheewong, chairman of the Anti-Corruption Thailand organisation, yesterday said he was not surprised by the news of a bribery scandal involving the country.
“Corruption cases like this happen regularly. 
“This indicates that corruption is a chronic problem for our country,” Pramon said.
He added that his organisation would discuss the case with the |people involved next Tuesday |and suggest ways to tackle the problem.