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    Southeast Asia
     Feb 7, 2007
Page 2 of 2
Cracks appear in Thai aviation-hub hopes

By David Fullbrook

efficient transit services will begin by next year. In comparison, express trains to Kuala Lumpur from the airport began four years after the facility first opened, and Singapore's slow, indirect, local rail service opened in 2001, decades after the airport first went into service.

Rush job
Yet even a massively overhauled and rebuilt Suvarnabhumi will likely lack the speed, ease and choice currently on offer at Hong



Kong or Singapore - meaning Thailand will probably never achieve its initial hub ambitions, aviation experts say. Many - though not all - of the airport's problems would probably have been rectified if the airport's opening had been postponed until the facility was finished. Early last year, then-prime minister Thaksin Shinawatra ordered that the airport be opened without fail on September 28, discounting advice from aviation experts and international airlines to delay for six to 12 months.

"We and a number of airlines commented that we were concerned there was not enough testing and planning prior to opening," said Herdman.

Worse, there are indications of a possible cover-up. Thaksin's government filed massive defamation suits against the Bangkok Post when it first reported that cracks were emerging in the new runways in August 2005. Rather than standing by the story, Post executives acquiesced to government pressure and fired the reporter and editor responsible for reporting the story.

Thaksin was ousted in a September 19 coup on charges of corruption, including alleged graft related to Suvarnabhumi's construction, and the new military-appointed interim government is now left holding the bag of his government's mismanagement. If the local Thai dailies have it right, many of the problems now besetting the new airport stem from corruption on a grand scale even by Thailand's standards. Government investigators, on orders from the military junta, are now probing dozens of contracts for construction and services, and initial findings are expected in the next few weeks.

Among those contracts under review is a 10-year security contract won by Loxley, a telecommunications firm with strong business connections to the Shin Corp, formerly majority-owned by Thaksin's family, despite lacking any relevant experience in the security business. After re-examining the procurement and pricing of 26 luggage CTX explosives scanners purchased from General Electric, the Asset Examination Committee said in December that both Thaksin and Suriya Jungrungruangkit, the former transport minister, were guilty of corruption. (Earlier probes led by Thaksin and US authorities failed to turn up strong evidence of price collusion.)

Another big case hanging over the airport is related to Kingpower International's exclusive rights to as much retail and restaurant space inside the airport as it desires. The company has jacked up prices on food and drinks in the airport at least 25% higher than prime downtown locations, leading to customer complaints. Leading international airports such as Heathrow and Singapore guarantee that prices match city rates.

Oddly, airports authority officials now claim that after review, the Kingpower contract remains unsigned. Yet they seem unable or unwilling to clear Kingpower - which has recently unveiled a massive new corporate headquarters near Bangkok's Victory Monument - from its monopoly on retail space even with an unsigned contract.

In October, authority president Chotisak Asapaviriya told reporters he did not know how much space Kingpower had been allotted. He abruptly resigned his post last Thursday, citing stress and ill health. That same day the ax fell on two of his colleagues for failing to sort out the airport's spiraling problems. General Saprang Kalayanamitr, vice chairman of the junta and widely tipped to become the next army commander, has promised to sack anybody else who fails to keep in step with ongoing government probes.

Critics already say the generals' overarching presence is unlikely to reveal an impartial picture of the airport's shortcomings and will be heavily influenced by the still-unfolding conflict between the junta and Thaksin, who has recently commenced ridiculing the junta in interviews with various international media outlets from self-imposed exile. The junta fears his return could stir unrest, as the former premier is believed still to command strong support among the rural masses, as well as loyalties inside the government bureaucracy, members of which the junta has accused of dragging their heels on airport-related probes.

"Problems are normal for any new airport. In our case it's made more complex because everybody wants to run down the former prime minister," said Sumet, the architect.

Meanwhile, the junta is still struggling to pin down allegations of corruption, including those related to Suvarnabhumi, against Thaksin and his former political associates. And as the ruling junta, the Council for National Security, has vowed and so far stood by its initial promise to step aside and allow for new democratic elections this year, time is running short for the junta to prove its initial corruption allegations against Thaksin, which in part justified their coup. Those ongoing efforts will keep the politics of corruption looming over the airport's problems and solutions for some months to come.

(Copyright 2007 Asia Times Online Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)

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