THAILAND - A multi-billion-baht exhibition and conference centre slated for development in Phuket has ground to a halt under allegations of corruption, according to finance ministry officials.
A total of 2.6bn baht (US$78m) has been allocated to the Thai Khem Khaeng investment programme, with one educational institution awarded 100mn baht to develop designs for the new international centre.
But according to Bangkok Post national newspaper, designers and architects bidding for the project have allegedly been asked for kickbacks as high as 41 per cent from state officials.
Sources said that local politicians with interests in the project “demanded kickbacks of as much as 45 per cent” for the contract. Final ‘tea money’ payments were settled at 41mn baht, or 41 per cent, for the deal.
According to the report, the Treasury Department, which is developing the project, had wanted to retain Thammasat University as the designer. However, university officials refused to pay any kickbacks and pulled out of the bidding.
The project, located on public land in Thalang district, was originally initiated in 2007.
