The junta and that tower

When we posted on the junta’s proposed erection of a giant tower on prime real estate, we could smell rotting fish. No bidding, no transparency, claims of “public good,” and then the declaration that it all had something to do with the deceased king suggested – no, shouted – that there was funny business.

The Nation reports that corruption alarm bells are ringing. And they should be.

Assistant junta spokesman Colonel Atisit Chaiyanuwat was the one who “disclosed that the Cabinet had exempted the project from bidding to speed up the project. ” Recall that yesterday the claim was lack of interest from construction firms.

The this same Atisit said “private investors would fund the tower project.” Really? Atisit also “backtracked from his earlier statement that the 459-metre-high tower would cost Bt7.6 billion, bringing that figure down to Bt4.6 billion.” Wow, a discount because no one wants to build it – they aren’t interested…. In other words, this is a mixture of buffalo manure and rotting fish.

Not deterred by contradiction and spin, Atisit also “said the project only needed Cabinet approval because it would be developed on a plot of land belonging to the Finance Ministry’s Treasury Department.” The idea being that the Treasury Department can do what it likes? And the poor taxpayer just gets stiffed again?

Located in Bangkok’s Klong San district, the plot is located on the Chao Phraya River, and is one of the most expensive parts of the city. Prices for land are well into the millions of baht per square meter.  The public purse, though, will reap a glorious 198 million baht in rent, over 30 years. That’s 6.6 million baht a year. Wow, what a deal! We wonder if the taxpayer is going to also get a few glass beads and other trinkets.

The Bangkok Post adds some important information about the deal that reveals quite a lot more.

For a start, it says income over 30 years for the Treasury will be only 70 million baht. And that’s from the director-general Patchara Anuntasilpa of the department.

Then there’s this tidbit:

Registered in 2014, the Bangkok Observation Tower Foundation was originally chaired by Visit Malaisirirat, CEO of Magnolia Quality Development Corporation Co, the property development arm of Charoen Pokphand (CP) Group. The position was later taken over by former Finance Minister Panas Simasathien.

The foundation’s directors include representatives from Siam Piwat Co, the operator of Siam Center and Siam Discovery.

Meanwhile, Magnolia, Siam Piwat and CP group are the joint developer of Iconsiam, a mixed-use project by the Chao Phraya River scheduled to launch by the end of this year. The project is next to the planned tower. In the promotional material of Iconsiam released in April, it wrote, “prepare for the 7th Wonder of ICONSIAM. An Iconic Landmark that will be a symbol of national pride,” without elaboration.

We all know who CP is. They are on top of Thailand’s non-royal rich list year after year, this year worth more than $21 billion. But what of Siam Piwat? For the answer, we will send readers to a 2013 post on royal wealth. Bingo!

Yes, it is yet another royal money maker. One source calculates that Princess Sirindhorn earns more than $50 million a year from Siam Piwat and the land in the area around her palace.

We guess that the next junta task will be to ban comment on its erection because that would be lese majeste and sedition, preventing slippery deals that make the royals wealthier still. And we still reckon that there must be some generals lurking behind the scenes gathering up the change that falls from the royal pockets.

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