Pattaya Daily News

07 September 2010 :: 18:09:31 pm 37753

Fraudulent Contractors Investigated by Pattaya City Hall

Three contractors working on over 10 different construction projects for Pattaya City Hall are being indicted over numerous fraudulent documents in securing the contracts, according to Pattaya Mayor Itthiphol Khunpluem. Administrative corruption claims within City Hall are also now being investigated as a result of the findings.
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Pattaya, the 2nd of September 2010: At approximately 10:00am on Thursday, a press conference was called by Pattaya City Mayor Itthiphol Khunpluem over the indictment of three contractors working on numerous developments in Pattaya.

Mr. Khunpluem explained that litigation proceedings against three contractors, True Work Buiter, Reoflick Corporation and KKD Engineers, had been enacted over numerous fraudulent documents provided upon their application to secure various construction contracts throughout the city.

All three companies are accused of providing false bank guarantee documents for several projects in Pattaya, documents falsified in the name of the United Overseas Thai Bank (UOB). Infringements by the three contractors are as follows:

– True Work Buiter submitted false bank guarantees on the 6th of March 2006 for the construction and reparations on the Nokyang Canal.

– Reoflick Corporation submitted false bank guarantees on the 4th of May 2010 and the 15th of June 2010 for the construction of a  reinforced concrete roadway and channel joining to Soi Thepprasit 8.

– KKD Engineers submitted false bank guarantees and advanced payment documents on six occasion dating from the 7th of April 2006 until the 17th of March 2010.

Resultant checks with the UOB Bank found that all documents submitted by the three contractors, including a total of 11 other projects separate from the above, were falsified.

Litigation against the three contractors by Pattaya City Hall began once UOB confirmed that all documents pertaining to the contracts, worth an estimated Bt458 million, were false and not officially certified by the bank.

Mayor Khunpluem revealed that the falsified documents posed significant compensation and insurance problems for City Hall, particularly if developments were/are substandard. In addition, any advance payments (wages) made to the contractor are ineligible for deduction off the construction budgets, posing a significant loss for City Hall. In total, all three companies were paid an estimated Bt168 million in advanced payments for the developments.

In conclusion, Mayor Khunpluem advised that a special investigative panel had been setup to probe possible official corruption in the developments, which total more than 15 major projects over the last 5 years by the three contractors.

Any ongoing projects being managed by the three contractors have subsequently been suspended pending investigations, while third party examinations of the completed projects are being undertaken to see if construction costs have been appropriately managed and the development is to appropriate standards.

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Reporter : PDN staff   Photo : PDN staff   Category : Crime News

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