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98139
Mon, 01/04/2010 - 19:08
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http://m.oananews.org//node/98139
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Loxley to sue for Bt3 billion compensation if government axes online lottery project
BANGKOK, Jan 4 (TNA) - Loxley Gtech Technology (LGT), a subsidiary of Loxley, assigned by the ousted government of prime minister Thaksin Shinawatra to install electronic lottery vending machines in Thailand, threatened to sue for Bt3 billion if the Abhisit government scraps the long-delayed online lottery project.
Trichakr Tansuphasiri, LGT’s president and chief executive officer, said he is waiting for a clear stance of the government on the online lottery project but the company will go ahead with the plan under the order of the Government Lottery Office (GLO) on December 4, 2009 assign the LGT to prepare the lottery system within 90 days, by about March this year.
Under the deal with government agency, Loxley would be responsible for setting up the system and providing equipment, technology and services for a national online lottery in Thailand. Loxley would received a 75 satang fee per lottery ticket while the GLO would own the electronic lottery, he said.
LGT did not receive the concession from the government and the GLO-LGT contract did not come under the Public-Private Joint Venture Act, he said, but the Office of the Council of State of Thailand had approved carrying out the online lottery under the contract.
Mr Trichakr said the Loxley contract initially was for five years beginning in mid-2005 and could be extended on one a year basis for three times. He said LGT was set up as a joint venture between Loxley Public Company Limited and Gtech Corporation of the US, a leading and reputable company with expertise on the lottery tickets system in which Gtech is a 49 per cent equity partner.
It would be unacceptable for the foreign investor if the government could not honour the contract that had been signed, he said, saying that legal action should be considered an option.
Mr Trichakr said the LGT had invested in the system for Bt2 billion and could consider for Bt3 billion for compensation if the government to scrap the plan.
He added that some 5,000 online vending machines are to be installed for the system.
Prime Minister Abhisit Vejjajiva said on Sunday that a panel headed by Kiat Sittheeamorn, president of the Thailand Trade Representatives, would study laws and contracts made with LGT to determine how to end the electronic lottery project.
The prime minister said the project would have negative impact on the society, especially on youth. (TNA)
Trichakr Tansuphasiri, LGT’s president and chief executive officer, said he is waiting for a clear stance of the government on the online lottery project but the company will go ahead with the plan under the order of the Government Lottery Office (GLO) on December 4, 2009 assign the LGT to prepare the lottery system within 90 days, by about March this year.
Under the deal with government agency, Loxley would be responsible for setting up the system and providing equipment, technology and services for a national online lottery in Thailand. Loxley would received a 75 satang fee per lottery ticket while the GLO would own the electronic lottery, he said.
LGT did not receive the concession from the government and the GLO-LGT contract did not come under the Public-Private Joint Venture Act, he said, but the Office of the Council of State of Thailand had approved carrying out the online lottery under the contract.
Mr Trichakr said the Loxley contract initially was for five years beginning in mid-2005 and could be extended on one a year basis for three times. He said LGT was set up as a joint venture between Loxley Public Company Limited and Gtech Corporation of the US, a leading and reputable company with expertise on the lottery tickets system in which Gtech is a 49 per cent equity partner.
It would be unacceptable for the foreign investor if the government could not honour the contract that had been signed, he said, saying that legal action should be considered an option.
Mr Trichakr said the LGT had invested in the system for Bt2 billion and could consider for Bt3 billion for compensation if the government to scrap the plan.
He added that some 5,000 online vending machines are to be installed for the system.
Prime Minister Abhisit Vejjajiva said on Sunday that a panel headed by Kiat Sittheeamorn, president of the Thailand Trade Representatives, would study laws and contracts made with LGT to determine how to end the electronic lottery project.
The prime minister said the project would have negative impact on the society, especially on youth. (TNA)
