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  1. #1

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    King Power ordered out of Suvarnabhumi

    Duty free firm gets the boot
    King Power ordered out of Suvarnabhumi

    AMORNRAT MAHITTHIROOK

    The Airports of Thailand (AoT) board has ordered King Power Duty Free out of Suvarnabhumi airport after a fresh investigation found that its contract was signed without approval from the government.

    The board, led by Gen Saprang Kalayanamitr, also gave the green light to take action against present and past AoT officials who colluded with the firm.

    The evidence was in the findings of an outside committee headed by Pol Gen Pratin Santiprabhob set up to investigate King Power's right to operate commercial space in the passenger terminal of the new airport.

    AoT decided in March that the contracts were void because they were designed to avoid the Public-Private Joint Venture Act that requires a lengthy selection process for any investment worth one billion baht or more by the private sector in a state project.

    But the airport agency has not made any legal move.

    King Power and its sister firm, King Power Suvarnabhumi Co, filed lawsuits with the Civil Court demanding 20.8 billion baht and 48 billion baht, respectively, from AoT in compensation for nullifying their contracts in March.

    Yesterday's meeting was told for the first time that the Pratin investigation had found the deals had bypassed both the cabinet and the Suvarnabhumi airport development committee chaired by the prime minister.

    The approval given by the previous AoT board for King Power to operate at Suvarnabhumi was illegal, AoT board spokesman Chirmsak Pinthong said.

    The seven new members on the AoT board, including the chairman, Gen Saprang, resolved unanimously to order King Power to leave the new airport in due time, he said.

    They agreed to file the case with the Administrative Court and to ask the National Counter Corruption Commission to take up the case leading to action against present and past officials.

    A new bidding contest to find a few duty free shop operators at Suvarnabhumi airport was needed, he added.

    In response, Chulchit Bunyaketu, deputy chairman of King Power International Group, suggested AoT go to court.

    The Prime Minister's Office issued a regulation in 2002, requiring AoT to study any deal under the airport project thoroughly and seek approval from the airport development committee and the cabinet before implementation.

    However, the past AoT board, chaired by then transport permanent secretary Srisook Chandrangsu, approved the King Power duty free contract right away, without seeking approval from the prime minister's airport development committee and the cabinet, Mr Chirmsak said.

    According to Pol Gen Pratin's report, King Power firstly asked AoT on Jan 13, 2004, to extend its duty free shop contract that would expire in 2005. The contract covered its duty free shop only at Don Mueang airport and regional airports of AoT, but the requested extension was aimed at allowing King Power to expand its duty free business at Suvarnabhumi, which took over Bangkok air traffic from Don Mueang.

    Then acting AoT president Bancha Pattanaporn saw the issue as exceeding his authority and passed it to the previous AoT board.

    The Srisook board first consulted the Council of State, which is the government's legal arm. The council disagreed with the contract extension and suggested a fresh bidding contest because the business venue would change from Don Mueang to Suvarnabhumi airport.

    The past AoT board arranged for a working group to study the issue, headed by Vudhibhandu Vichairatana, the Budget Bureau director.

    The working group agreed to extend the King Power contract to Suvarnabhumi airport and the past AoT board approved the extension accordingly.

    Pol Gen Pratin's committee identified officials responsible for the irregularities but Mr Chirmsak declined to name them.

    Earlier, Pol Gen Pratin had implicated politicians, former AoT board members and AoT officials.

    Mr Vudhibhandu still sits on the present AoT board, but he and some other board members who were also on the past board did not attend the AoT board's meeting yesterday.

    Pol Gen Pratin said his committee would now examine the contract of King Power Suvarnabhumi, which won the right to develop the rest of the commercial space in the airport terminal.

    Bangkok Post

  2. #2
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    Oh good so they are going to lose duty free at the airport as well.

    That's going to really help the image of the place.

  3. #3
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    Mid's Avatar
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    couldn't happen to a nicer bunch of thieves ....................

  4. #4
    Thailand Expat
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    since you cannot take liquids on-board, what's the point of having duty free?

  5. #5
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    Quote Originally Posted by William View Post
    since you cannot take liquids on-board, what's the point of having duty free?
    You can buy them upon arrivals. Not a great selection, but still. Even picked up a bottle of absinth last time I came through. An aquired taste, for sure....

  6. #6
    Thailand Expat AntRobertson's Avatar
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    Quote Originally Posted by mrsquirrel
    Oh good so they are going to lose duty free at the airport as well. That's going to really help the image of the place.
    Presumably they'll (re)offer the concession for tender though.

  7. #7
    Thailand Expat AntRobertson's Avatar
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    Quote Originally Posted by Whiteshiva
    Even picked up a bottle of absinth last time I came through. An aquired taste, for sure....
    What's it like? Is it true what they say about the hallucinogenic properties?

  8. #8
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    The Ghost Of The Moog's Avatar
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    I'm sure an arrangement can be reached whereby King Power can stay.

    wink wink.

  9. #9
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    Quote:
    Originally Posted by Whiteshiva
    Even picked up a bottle of absinth last time I came through. An aquired taste, for sure....

    What's it like? Is it true what they say about the hallucinogenic properties?

    That's the stuff that made Van Gogh cut his nob off isn't it?

  10. #10
    Have you got any cheese Thetyim's Avatar
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    Quote Originally Posted by minime
    That's the stuff that made Van Gogh cut his nob off isn't it?
    Nope, he had a thai wife

  11. #11
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    Quote Originally Posted by minime View Post
    Quote:
    Originally Posted by Whiteshiva
    Even picked up a bottle of absinth last time I came through. An aquired taste, for sure....

    What's it like? Is it true what they say about the hallucinogenic properties?

    That's the stuff that made Van Gogh cut his nob off isn't it?
    OK, no and no - Van Gogh cut off his ear, not his nob. He wasn't crazy, you know.

  12. #12
    I am in Jail

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    [quote=AntRobertson;375505]
    Quote Originally Posted by Whiteshiva
    What's it like? Is it true what they say about the hallucinogenic properties?
    It's bollocks. I believe it's 70% proof though which would certainly see you almost hallucinating.

  13. #13
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    I thought it was 120%, but not a drinker.

  14. #14
    ding ding ding
    Spin's Avatar
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    So let me get this straight, the junta are not happy that the old govermnet got the bribe money and now they want to tear up the contract and arrange a new one so the junta can have the bribe money as well?

  15. #15
    Thailand Expat AntRobertson's Avatar
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    Quote Originally Posted by Spin
    So let me get this straight, the junta are not happy that the old govermnet got the bribe money and now they want to tear up the contract and arrange a new one so the junta can have the bribe money as well?
    You, Sir, are an astute commentator on Thai politics! Nicely summarised!

  16. #16
    The Pikey Hunter
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    [quote=shehiredahitman;375565]
    Quote Originally Posted by AntRobertson View Post
    Quote Originally Posted by Whiteshiva
    What's it like? Is it true what they say about the hallucinogenic properties?
    It's bollocks. I believe it's 70% proof though which would certainly see you almost hallucinating.

    Good info here: Absinthe - Wikipedia, the free encyclopedia

    Always fancied giving this a try. Not the sort of thing that Tescos stock though.

  17. #17
    The Pikey Hunter
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    [quote=Gerbil;375625]
    Quote Originally Posted by shehiredahitman View Post
    Quote Originally Posted by AntRobertson View Post
    Quote Originally Posted by Whiteshiva
    What's it like? Is it true what they say about the hallucinogenic properties?
    It's bollocks. I believe it's 70% proof though which would certainly see you almost hallucinating.

    Good info here: Absinthe - Wikipedia, the free encyclopedia

    Always fancied giving this a try. Not the sort of thing that Tescos stock though.
    More info here: Modern Drunkard Magazine Online

    My Dance with the Faerie
    “Got tight last night on absinthe. Did knife tricks.” —Hemingway

    I became acquainted with the idea of absinthe from reading Hemingway and F. Scott Fitzgerald novels as a teenager. The books didn’t describe exactly what it was, but they went into great detail about what it did to you. I came to learn it was the Lost Generation’s LSD, it was what took the book’s characters, be they writers, soldiers, artists or socialites, out of their minds and transported them to a better, smarter place.

    Fanatical fan that I am of Hemingway, it was with almost obscene anticipation I awaited my bottle of absinthe. Instead of parlaying with shady characters and strange currency in some dim Eastern European alley, I parlayed with a computer and my fiancee’s credit card. I surfed to www.absintheoriginal.com, typed in my information and a scant week later a package arrived from the Czech Republic. It was so easy and undramatic I felt vaguely guilty telling friends how I got it.

    I clawed open the box and there it was—Absinthe! The Green Faerie, the mystical liquor that lent Hem and Fitz special powers, the liquid light of the Lost Generation, the boon and bane of generation upon generation of artistic genius! I could scarcely believe it. I’d long used a burgundy/whiskey/coffee combination to help me write (alcohol for inspiration, coffee for structure) and here was the whole shebang in one compact, illicit package.

    I dove right in. I followed the ritual described by Hemingway (I’d ordered a fancy spoon as well) and marveled at the transmutation, it was precisely as he’d described it. To complete the ritual, there was only one thing left to do.

    The taste comes on with all the subtlety of a freight train, and unless you’re a fan of Pernod or anisette, it takes getting used to. Even with the sugar and ice-water dilution, the flavor is full-bore, uncompromising and, for lack of a better phrase, right up in your face. It wasn’t designed by marketing execs trying to kiss your taste bud’s collective ass. It’s not one of those new liquors that roll out every month that you can shoot, think, “That’s cool, I guess,” and move on with your life. You drink absinthe and you think, “Holy Christ, what the fuck is that?”

    I drank the glass and repeated the ritual, and yeah, I’ll admit it, the ritual adds to the event, it provides the same paraphenaliac fetishism that separates the heroin addicts in the art schools from crackheads in the alley. The second glass went down easier and by the third I decided that, yes, I liked the taste of absinthe. I poured a fourth, then a fifth, because I knew to get the real effect you had to drink a lot of it. Back in the day, the hard boys drank 10 to 20 glasses a day, and, as I’ve said, back then it had a much higher thujone content.

    Eight glasses in and I was starting to get drunk—and something else. If you’ve had your way with modern hallucigens like LSD and psychedelic mushrooms and expect the same out of absinthe, you’ll be sorely disappointed. The effect is much more subtle, it’s difference between being fired out of a cannon and hang gliding.

    After my tenth glass I sat down to write, and that’s when I got a grip on what that difference was. I was drunk, yes, but not whiskey or wine drunk, I was drunk and clear-headed. I discovered I could write with a strange sense of cognizance when I should have been scratching unintelligible ravings on bar napkins. The alcohol wave was rolling through me, but instead of drowning, I was somehow above it, coolly observing. No hallucinations, no madness, just drunken clarity.
    You, sir, are a God among men....
    Short Men, who aren't terribly bright....
    More like dwarves with learning disabilities....
    You are a God among Dwarves With Learning Disabilities.

  18. #18
    ding ding ding
    Spin's Avatar
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    Quote Originally Posted by AntRobertson
    Nicely summarised!
    ditto onto yesterdays thread about the electronics for the MRT, Bombardier got the contract at a higher price than Siemens who already built half the MRT

  19. #19
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    Quote Originally Posted by William View Post
    since you cannot take liquids on-board, what's the point of having duty free?
    You can take the duty free liquids on board. The seal the bag after puchase. Works with direct flights only though.

  20. #20
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    Quote Originally Posted by Whiteshiva View Post
    Quote Originally Posted by minime View Post
    Quote:
    Originally Posted by Whiteshiva
    Even picked up a bottle of absinth last time I came through. An aquired taste, for sure....

    What's it like? Is it true what they say about the hallucinogenic properties?

    That's the stuff that made Van Gogh cut his nob off isn't it?
    OK, no and no - Van Gogh cut off his ear, not his nob. He wasn't crazy, you know.
    So van gogh stuck his knob in his ear? Should have got a job in the circus.

  21. #21

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    AOT wants legal backup to expel King Power

    AOT wants legal backup to expel King Power


    Airports of Thailand's management is seeking government advice on how to enforce its boards' order on Thursday to kick King Power Duty Free out of Suvarnabhumi Airport without getting the state enterprise into deeper trouble.

    "I will need to consult the legal team, starting with the Office of the Attorney-General," acting president Kulya Pakakrong said yesterday.

    She was uncertain if she had the authority to take drastic action against King Power International Group, the operator of the duty-free shops and retail areas at the passenger terminal.

    "What if my action harms AOT? If I need to use my judgement, I'm entitled to seek counsel to prevent damage. If necessary, I may need advice from outside lawyers," Kulya said during an interview.

    On Thursday AOT board spokesman Chirmsak Pinthong said the directors at their meeting earlier that day, including chairman General Saprang Kalayanamitr, had resolved unanimously to demand King Power vacate the new airport in "due time".

    They agreed to file a petition with the Administrative Court and ask the National Counter Corruption Commission to take action against present and past officials.

    A King Power public-relations officer said yesterday that chairman Vichai Raksriaksorn was on an overseas trip and not available for comment but several top executives, including group deputy chairman Chulchit Bunyaketu and group managing director Sombat Dechapanichkul, had discussed the concession terms throughout the day. Neither could be reached for comment.

    AOT decided in March to cancel the duty-free and commercial-area management contracts with King Power after the Council of State said the deals did not conform to the Public-Private Joint-Venture Act governing state contracts with a company worth over Bt1 billion. The act requires any such project to undergo strict scrutiny.

    King Power retaliated by filing lawsuits demanding compensation of Bt20.8 billion and Bt48 billion for losing the two concessions. The civil court set the first hearing for October.

    The AOT board on Thursday renewed its talks on the duty-free problem with support from the findings of an outside committee headed by Pol General Pratin Santiprabhob. The committee was set up to investigate four issues, including the contracts with King Power.

    Kulya admitted that since King Power had taken the matter to court AOT had done nothing aside from appointing a state attorney to represent it.

    Since then, all revenues from the concessions that were supposed to go to AOT have been parked with the court. Those revenues now amount to over Bt1 billion, Kulya said.

    Achara Deboonme,
    Suchat Sritama
    The Nation

  22. #22

    R.I.P.


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    Previous AoT board 'privy to legal breach'

    KING POWER / DUTY FREE CONTRACT PROBE

    Previous AoT board 'privy to legal breach'
    AMORNRAT MAHITTHIROOK


    A panel investigating King Power's right to operate commercial space in Suvarnabhumi airport yesterday named the parties involved in alleged irregularities in which contracts were allegedly split to avoid scrutiny by the state.

    In its 67-page probe report, the panel, appointed by the Airports of Thailand (AoT) board and headed by Pol Gen Pratin Santiprabhob, found the previous AoT board, chaired by then transport permanent secretary Srisook Chandrangsu, had improperly approved the King Power duty free contract, causing damage to the state.

    The previous board failed to abide by legal procedures in approving the extension of the King Power contract, the panel found. It also said a working group headed by Vudhibhandu Vichairatana set up by the previous board to study the contract extension issue, along with King Power Plc and Chulalongkorn University's Intellectual Property Institute were all also involved in the alleged irregularities.

    According to the Pratin panel report, King Power first asked AoT on Jan 13, 2004, to extend its duty free shop contract that would expire in 2005. The contract covered its duty free shops only at Don Mueang airport and regional airports of AoT, but the requested extension was aimed at allowing King Power to expand its duty free business to Suvarnabhumi airport, which took over from Don Mueang last September.

    The panel found the contracts were designed to avoid the Public-Private Joint Venture Act that requires a lengthy selection process for any investment worth one billion baht or more by the private sector in a state project.

    The panel said the Srisook board failed to act in line with the law despite receiving advice from the Council of State, the government's legal arm, that investment costs of King Power, including its inventory of goods, amounted to more than one billion baht.

    The board later hired Chulalongkorn University's IP Institute to study the project costs. The institute put the cost at 813.838 million baht, said the panel, adding the real figure was 2.5 billion baht.

    The findings also said the Vudhibhandu working group acted beyond the scope of its responsibility, and names two King Power executives who it said colluded with the past AoT board in quoting low prices to avoid the act.

    Bangkok Post

  23. #23
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    I am sure there are other companies that would be happy to take king powers place in the duty free business at the Air Port

  24. #24
    Rhubarb, rhubarb, rhubarb
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    Yes, but, unless there are at least two or more companies selling duty free goods, it'll end up the same as when King Power had the monopoly.
    Rip off prices.

  25. #25
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    Correct Sir Burr, as use the airport frequently and would not entertain prices as too high.
    Sometimes goods cheaper on the high street

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