TPC fires executive VP over dubious deals

       Beleaguered Thailand Privilege Card on Tuesday sacked an executive vice president over two dubious service contracts worth Bt102 million, including an IT project that never materialised.
       "Everyone knows that TPC is in crisis. Management was suspicious why someone could enter into such a big project," TPC chairman Thongchai Sridama said yesterday.
       Yodchai Dejvithak, head of TPC's distribution and marketing department, was asked to quit immediately while attending the board of directors' meeting on Tuesday.
       He was suspected of making unfair purchasing contracts with Advance Information Technology, an IT firm, and JC Decaux, an outdoor advertising agency.
       TPC signed a Bt78-million contract with Advance Information Technology early this year to use an integrated office automation and customer-relations management system installed by the company. However, the IT firm has not performed any service at TPC.
       TPC's board agreed to freeze the project since TPC was ordered by the government to halt operations and purchasing jobs. It also asked for a cost reduction.
       TPC then received a notice from Advance Information Technology, asking for compensation of Bt28 million.
       The board gave Yodchai seven days to negotiate with Advance Information Technology to lower the claim for damages, which should be only Bt3 million-Bt8 million. If the two parties could reach the lower figure, they both could end the conflict, or they could go to court if talks failed.
       "Thus, the company has not formed any investigative committee to seek the truth of the contract. The company preferred to negotiate first," Thongchai said.
       Yodchai's involvement in the purchase of the system was during the time that Weerasak Kowsurat was tourism minister and Surapong Triamchanchai was acting president.
       The Tourism Ministry supervises TPC.
       During that time, Yodchai also signed a one-year contract with JC Decaux for Bt24 million to use outdoor ads at Suvarnabhumi Airport. TPC has been paying a monthly fee of Bt2 million and the contract ends next month.
       "The board wondered why TPC chose JC Decaux although another firm had offered a lower price," Thongchai said.
       TPC later wanted to end the contract early, but failed as it ran for a full year and it would have to pay the remaining monthly fees.
       Thongchai said it was another unfair contract entered into by previous management.
       TPC earlier shelved a plan to hire six Toyota Alphards with drivers at a total cost of Bt20 million per year.
       A representative of TPC said the board had also tried to force Udom Methathomrongsiri, an official from the Tourism Authority of Thailand, who is acting president of TPC, to resign, but he refused.
       The representative said Udom would step down only when the TAT ordered him to do so. There was a report that the board would hold an urgent meeting today to dismiss Udom.
       TPC plans for further cost reduction by cutting its staff along with opening a second early-retirement programme soon targeting 10 persons, Thongchai said.
       On Tuesday it cut back another executive vice president, Nutthapol Keawpensri, who handled members' privileges and relations.
       TPC has Bt376 million remaining in cash and 2,500 members from around the world.
       The company is preparing four options for its future.
       They are closing down, going ahead with a new structure, privatising and returning to the TAT.
       The Tourism Ministry will soon propose the choices to the Cabinet.