The Foreign Trade Department will appeal against the Central Administrative Court's order suspending the auction of degraded rice and contract signing of degraded rice already auctioned off.
The court's injunction to put on hold auction and contract signing of degraded rice stems from a lawsuit lodged with the court by TPK Ethanol Company accusing the Rice Policy and Management Committee of being biased against the company for rejecting the firm's bid for 525,000 tonnes of graded rice despite the fact that it offered the highest bid.
FTD director-general Mrs Duangporn Rodpayat said the court's injunction forced the department to delay the signing of a contract to sell two million tonnes of degraded rice to the winners of an auction staged on June 15.
Also, she added that the court's order also caused the department to put on hold an auction of 568,000 tonnes of degraded rice originally scheduled on July 17.
Mrs Duangporn explained that the department rejected TPK Ethanol Company's bid despite its highest offer because two board members of the firm were faulted by the Supreme Court for breach of contract regarding tapioca price stabilisation project and ordered to pay compensation plus interest thereon to the FTD and, until now, both were yet to make the payments.
She noted that the government would have to pay 31 million baht in storage fees each month if it had to keep 500,000 tonnes of degrade rice in private warehouses as ordered by the court.
Source: Thai Public Broadcasting Service (Thai PBS)