Siracha slams PTT pipeline deal
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Siracha slams PTT pipeline deal

A former chief ombudsman lashed out yesterday at the state auditor and the Finance Ministry over their proposal that PTT Plc pay 32.61 billion baht in compensation for the company's failure to return gas pipelines to the state.

Siracha Vongsarayankura, former chairman of the Office of the Ombudsman, said he was opposed to the move and doubted the Finance Ministry and the Office of the Auditor-General (OAG) were protecting the public interest.

According to Mr Siracha, the state energy giant owed 68 billion baht to the state.

The company only returned three large pipelines and a few other smaller structures, worth approximately 16.2 billion baht, to the Finance Ministry's Treasury Department. He said the outstanding balance stood at 52 billion baht, not 32.61 billion as proposed.

His criticism came after the state audit agency and the Finance Ministry discussed the compensation and agreed that 32.61 billion baht should be paid for the property.

No money has been paid as yet. However, the pipelines would be listed as "rented" assets of PTT, which would be required to pay billions of baht in rent.

The proposal was said to be pending cabinet consideration and if it is approved, it could put an end to a legal dispute between the Office of the Ombudsman and PTT in the Administrative Court.

Last year, the Office of the Ombudsman lodged a complaint with the Administrative Court demanding PTT Plc return all gas pipelines to the state.

The pipelines are considered national assets and were laid down by the state before the firm was partially privatised in 2001.

The agency accused PTT Plc and 10 others of failing to comply with a 2007 ruling by the Supreme Administrative Court that it return offshore natural gas pipeline land plots to the state in 2007.

The lawsuit included the Ministries of Finance and Energy, former ministers Piyasvasti Amranand, Wanarat Channukul, and Korn Chatikavanij, and former PTT Plc head Prasert Bunsumpun.

The Office of the Ombudsman launched a probe in 2012, after the Administrative Court dismissed a petition by activists complaining about the matter on the grounds they were not directly affected.

The OAG and the Finance Ministry were not available for comment.

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