The 3G wholesale and resale deals between Thai state-owned communications firm CAT Telecom and True have been found to contain irregularities. The Information and Communication Technology Ministry says there are irregularities with the deal which could result in the agreements being scrapped. ICT minister Anudith Nakornthap said a final decision will be made shortly, The Bankok Post reports. The investigation by the ICT ministry focussed on five points but True says the contracts do not break any laws and the issues are political.
One of the issues involves a political instruction to CAT to reduce the purchase price of Hutchison CAT Wireless Multimedia network to THB 4 billion. The deal between CAT and Hutch collapsed as Hutchison would not sell the network to CAT for that price. This collapse enabled True and CAT to enter a deal quickly. CAT's management signed the six contracts on 26 January 2011, before receiving approval from the board.Another issue was that CAT has bypassed the cabinet and the National Economic and Social Development Board (NESDB) when it terminated the CDMA mobile service in 25 provinces with Hutch. The ICT ministry told the company to consult with the Council of State on the issue in November 2010.
Thirdly, CAT was found to have violated the ICT ministry work procedures when it went through with the deal with True.
Fourthly, CAT had been required to consult the NESDB and the Council of State after it received approval for its request to enter into a business deal with True. However, CAT did not do so.
The ministry also says that CAT had no authority to enter into the agreement with True and that it could be a violation of the 1992 Public-Private Joint Venture Act, which requires scrutiny of any public-private venture worth over THB 1 billion.
Minister Anundith said the contracts were intentionally made to avoid telecom-related laws.
