Thursday, December 29, 2011

BMA questions legal basis of SRT's management - The Nation

Home ? national ? BMA questions legal basis of SRT's management

Sunday Market

The Nation December 29, 2011 1:00 am

"The Railway Act does not specifically state that the SRT can manage the market," Sanya Jantarat, an adviser to Bangkok Governor MR Sukhumbhand Paribatra, told a news conference.

He was speaking after it was reported that the Cabinet on Tuesday issued a resolution assigning the SRT to manage Chatuchak Market from January 2 onward.

The BMA established Chatuchak Market a few decades ago. Under its management, the market has grown into a world-famous attraction popular not just among Thais but also with foreign tourists. The cash flow within the market is said to be huge.

"We are ready to respond to the Cabinet resolution, but we have to examine it first," Sanya said. "We have concerns for consumers and vendors at the market."

He said many parties now wondered which agency would take charge of the Chatuchak Market next year.

Sanya said the BMA would ask the government to forward the Cabinet resolution to the BMA to study.

"We have to examine whether the Cabinet has approved the SRT's management of Chatuchak Market or just the market's grounds," he said.

If the SRT steps in to manage Chatuchak Market, it may violate the Railway Act, Sanya said.

The BMA initially paid about Bt3.2 million a year in rent to the SRT for the plot on which the market is located. From 2001, the renewed contract saw BMA paying a much higher rent of more than Bt65 million a year to the SRT.

In 2008, the SRT raised the rent to about Bt200 million a year and the BMA agreed.

However, the BMA baulked at the SRT's recent push for an annual rent of Bt420 million. The quarrel over the rent hike finally led the SRT to take over the management of the market.

There are 8,805 registered stalls inside Chatuchak Market in addition to the stalls illegally operating around the site.

"I think I am going to face a higher rent fee," a clothes vendor at the market said yesterday. "That's the reason the SRT wants to take over from the BMA anyway."

Identifying himself only as "Supoj", he disclosed that he paid Bt25,000 a month for the right to operate his stalls. The rent was paid not to the BMA, but to people holding the right to lease the stalls.

"Most vendors here are sub-lessors," said Pornronnarong Nopdejchatchai, a 43-year-old shoe vendor.

There are three main groups of profiteers at Chatuchak Market.

The first group purchased the right to lease stalls from the original rights owners and sub-leased the stalls at a much higher fee. Key figures in this group are identified only as "Je Or" and "Seh Por". This group reportedly pockets a lump sum of about Bt1.5 billion from Chatuchak vendors each year.

The second group governs more than 1,000 unregistered or illegal stalls at the market. The group is led by someone known only as "Bro Yai". His gang collected Bt1,000 a day from each of the illegal stalls.

The last group, reportedly under the leadership of a "Seh Kor", reaps benefits from taxis, public vans, parking areas, and taxi motorcyclists around the Chatuchak Weekend Market.

Nisit Sintuprai, who chairs a working panel established by a deputy transport minister, said he expected the BMA to hand over the Chatuchak Market to the SRT within six months.

"In the meantime, we will set up working panels to look into each aspect of the management of the market including contracts, fee collection, laws and regulation of stalls," he said.

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Source: http://www.nationmultimedia.com/national/BMA-questions-legal-basis-of-SRTs-management-30172853.html

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