BTS defends its deal with VGI Global

Bangkok Mass Transit System (BTS) yesterday released a statement defending the company, in a reaction to an earlier news story.
BTS insisted its concession of advertisement and shops on BTS stations granted to VGI Global Media was transparent. According to an earlier news report, a source from a BTS creditor said the concession to VGI Global Media where the son of BTS chairman Keeree Kanjanapas is an executive, was not transparent. However, BTS insisted the concession was granted by a selection committee chaired by a creditor representative. The committee believes VGI's proposal is the best option among other bidders. In addition, the Skytrain operator said the contract between BTS and VGI had already been approved by creditors. BTS also said the figure of VGI's debt owed to the Skytrain operator was not as high as the amount mentioned earlier in news media. VGI has continuously made payments to BTS. The figure published earlier by the media is the total figure including the debt that is not due for repayment. According to an earlier report, creditors commented that half of VGI's revenues should go to BTS. However, VGI said the Skytrain operator was entitled only to revenues stemming from its business transactions with BTS, while VGI also had income from other businesses that did not involve the company.
|