News
Resolution of AOT's Board on duty-free shop contract
No.5921
24 August 2007
Subject: Notification of resolution of Board of Directors of Airports of Thailand Plc.,concerning duty-free shop contract at Suvarnabhumi Airport
To: President The Stock Exchange of Thailand
At the Meeting No 25/2007, on Thursday 23rd of August 2007, the Board of Directors of the Airports of Thailand Public Company Limited (AOT) acknowledged the investigation report on the contract acquisition by King Power Duty Free Co., Ltd., in operating duty-free shops at the Suvarnabhumi Airport and other regional airports, from Pol. Gen. Pratin Santipraphop, the leader of the Fact-Finding Committee of the Suvarnabhumi Airport. The report concluded that the directive, as issued by AOT to grant approval for King Power Duty Free Co., Ltd. to operate duty-free shops at the Suvarnabhumi Airport, is deemed unlawful, given the project value in excess of Baht One Billion. However, the process of selecting private firms to run the above business was not conducted in accordance with the Public-Private Joint Venture Act. AOT's Board of Directors, therefore, resolved to assign AOT President to proceed four following actions :
1. AOT shall rescind the above unlawful directive. In addition, there shall be a notification to King Power Duty Free Co., Ltd., to remove all its assets out of the Airport in due time, as specified by AOT. Should the company neglect to act in accordance with the time period, as specified, AOT will claim for compensation for any damage in its operations.
2. AOT shall submit the investigation results to the Minister of Transports for further submission to the Cabinet.
3. AOT shall submit the above investigation results to the National Counter-Corruption Commission for further action.
4. AOT shall institute legal proceedings according to the Civil Code, and take disciplinary actions against all involved parties, as identified under the Investigation Report.
However, these actions should not have any impacts on AOT's operations because AOT has not recognized any revenues and expenses from the King Power Group since the beginning.
The above is hereby submitted for your acknowledgement.
Yours sincerely,
(Kulya Pakakrong)
Senior Executive Vice President (Planning and Finance)
Acting President Authorized person
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