BMA looks into NACC ruling of Green Line contract

FRIDAY, AUGUST 30, 2024

City wants clarification on the illegality or otherwise of its O&M contract for the Green Line extensions before repaying debt

Bangkok Metropolitan Administration (BMA) and its business arm Krungthep Thanakom (KT) are looking into the ruling of the National Anti-Corruption Commission (NACC) regarding the illegality of the Green Line train contract before repaying the huge debt owed to train operator Bangkok Mass Transit System (BTSC) as per the court order.

The Supreme Administrative Court on July 26 gave BMA and KT 180 days to come up with 11.75 billion baht to cover the operating and maintenance (O&M) costs of the Saphan Taksin-Bang Wa and On Nut-Kheha extensions owed to BTSC.

KT chairman Tongthong Chandransu has told Krungthep Turakij newspaper that before paying the debt, the city is checking whether the NACC ruling affects the O&M contracts it made with BTSC.

On January 10, 2023, the NACC ruled that the allegation that the BMA illegally hired BTSC to operate three extension sections of the Green Line from 2021 to 2042 had merit. The allegation stipulates that then Bangkok governor Sukhumbhand Paribatra and 13 others had violated the Private Participation in State Undertaking Act B.E.2535 (1992) and the Act Concerning Offences Relating to the Submission of Bids to Government Agencies B.E.2542 (1999).

“We need to carefully interpret the details of the ruling as it involves a highly sensitive matter,” said Tongthong. “If the violations affect the legality of the subsequent O&M contracts, we will resubmit the case to the administrative court to reconsider.”

He added that if it turns out that the O&M contracts are lawful, BMA and KT are ready to pay the debt as per the court order.

“The interpretation of NACC’s ruling should be finished before the deadline of 180 days for payment of the debt,” said Tongthong.

The 11.75-billion-baht debt is one of the four parcels of debt that BMA and KT owe to BTSC for operating the Green Line since 2021 that have been subject to years of court battles. The entire debt amounts to 39.4 billion baht and could reach 40 billion baht if repayment is delayed.