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DAM-L LS: Klong Dam funds could be withheld (fwd)
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Date: Tue, 30 Jan 2001 01:11:13 -0800 (PST)
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subject: LS: Klong Dam funds could be withheld
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Klong Dan funds could be withheld
BY KAMOL SUKIN
The Nation, 28 January 2001
THE next disbursement of Japanese funds to the controversial Klong Dan
wastewater treatment project could be put on hold if allegations of
corruption in the purchase of land for the project are confirmed, said a
Japanese politician.
Two visiting Japanese opposition MPs said they would seek approval from the
Japanese Diet to temporarily cease disbursement of the remaining Bt4.3
billion worth of loans from the Asian Development Bank (ADB) and Japan Bank
of International Cooperation, pending the results of an investigation by
the National Counter Corruption Commission (NCCC).
Toshimasa Yamada, who visited the Klong Dan site this week, said he would
raise the issue with a group of 190 Japanese MPs who are committed to
monitoring the distribution of Japanese taxpayers' money abroad.
Having heard all sides of the debate surrounding the project during his
trip, Yamada said he personally agreed that the allegations of corruption
are persuasive.
"I can see no reason whatsoever why the project must be located on this
site, which is extremely expensive relative to market land prices in the
area," he said.
"I know land speculators here want to sell, given the economic recession."
Under Japanese law, if the allegations are proven, the loan must be
withdrawn permanently, Yamada said.
"The Japanese people will be most unhappy should it turn out their taxes
have been used to fund a corrupt project."
If withdrawn, the loan would take with it 30 per cent of the project's
total budget of Bt24 billion. The loan was extended by a group of Japanese
sources, including JBIC and ADB. About 40 per cent of the loan has been
spent, according to the operator of the project, the Pollution Control
Department (PCD).
The group of Japanese MPs, which believes Tokyo is loaning money to
"improper" projects through the Overseas Development Aid programme, singled
out the Klong Dan project for intensive scrutiny, said Yamada, a member of
the opposition Democratic Party. "As an MP I have an obligation to audit
public spending to make sure it goes to the right projects. If a project is
tainted by corruption or threatens to damage the local community or
environment, the Japanese public will be very unhappy," he said.
"We have never had such an auditing process before. It's a new role for
MPs, one which will be significant in the development of Japanese
politics," he said.
Another project under scrutiny is a large dam in the Philippines. There is
concern the project could have a severe impact on the area's indigenous
people, he said.
As part of the parliamentary auditing process, Yamada and another MP, Shun
Hayama, visited Thailand and met all the relevant authorities, including
those from the PCD, the NCCC, the project's owner, local villagers and
non-governmental organisations.
Yamada said an NCCC member told him the commission recently concluded its
preliminary investigation into the Klong Dan allegations and believes the
claims have some merit. Based on this, a more detailed investigation will
begin soon.
"Permanent withdrawal of the project could become a serious possibility in
our parliament once the NCCC rules," he said.
Two major concerns of the Japanese parliamentary group are the project's
lack of transparency and its potentially severe impacts on the environment
and local communities. Yamada agreed the authorities had failed to provide
the public with sufficient information on these two points.
He said he had asked the authorities to make all information on the project
available to affected villagers in an easy-to-understand form, especially
an environmental impact assessment (EIA) report.
The two MPs had also met some of the 102 Thai Senators who recently
submitted a letter to ADB president Tadao Chino asking for a review of the
bank's loan to the project. Yamada said he shared the Senators' concerns.
"We will seek further cooperation between the Thai Senators and our 190 MPs
in this case in the near future," he said.
Villager Dawan Chandrahassadee, a leader of local opposition to the
project, said the villagers are glad they had the chance to provide
information to the Japanese MPs. Dawan said she hoped the MPs would let the
Japanese people know about the "dark side" of the project, and ultimately
withdraw their support for it.
However, PCD senior official Yuwaree Inna said she didn't think the
opposition MPs' campaign would affect the project, dismissing it as
Japanese domestic political squabbling.
"I don't believe the Japanese government will withdraw the loan. They'll
listen to the Thai government. In fact, the MPs' visit is unofficial -
we're not obliged to provide them with information," Yawaree said.
She said she did not know whether the NCCC would set up another
investigation team.
Yamada said all information relevant to the project must be made available.
The villagers should be satisfied if problems with the project are dealt
with publicly, he said. Furthermore, the conflict should be mediated by a
neutral party, he added.
Dawan disagreed, saying it is hard to compromise on a project that was set
up in the wrong location to begin with. Moreover, she said, the more
information is made public, the more mistakes are uncovered.
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