According to the report on 12 December, a group of 28 subcontractors for the Clean Fuel Project (CFP) with 400 members gathered in front of the South Korean embassy to give a complaint letter regarding a payment dispute between the group and the UJV joint venture led by Samsung E&A (Thailand) Co., Ltd.
Chatmongkol Khemapirat, Assistant Managing Director at Sriracha Construction Co., Ltd., has submitted a letter of complaint through a representative of the South Korea embassy with details as follows:
- Forcing Samsung E&A to pay the remaining payment to CFP subcontractors with a total amount of more than THB 6 billion.
- Pressuring Samsung Corporation to use its power over its subsidiary to ensure that the payment would be complete and prompt.
- Secure a clear line of communication between the affected subcontractors and Samsung E&A to resolve the issue cordially.
- Pressuring Samsung E&A to reconsider and adjust an unfair or invalid term to resolve the issue as soon and as decisive as possible.
The report also said that Samsung E&A (Thailand) also has two additional foreign partners in the UJV joint venture, including Petrofac South East Asia Pte. Ltd. and Saipem Singapore Pte. Ltd.
Chatmongkol Khemapirat revealed to “Kaohoon” about today’s protest that the problem with Thai Oil PCL (SET: TOP)’s CFP with the leader of UJV Samsung E&A (Thailand) has been brewing for 10 months, when UJV refused to pay its 28 subcontractors, resulting in more than THB 7 billion of damage from lost revenue.
The gathering event had happened at TOP’s refinery plant while also submitting a complaint to the Government House, but no progress had been made. Today, the group decided to gather at the South Korean embassy, said Chanmongkol. Samsung is a large company and a part of contractors that subcontract Thai companies, the group has trust within the South Korean company but that has resulted in the failure of payment. The group perceived the action as unjust and decided to demand justice from the embassy, Chanmongkol added.
Chanmongkol also iterates further that the group has tried to view the joint venture positively, as such the group decided to notify the embassy first, told Samsung executives about what happened in Thailand, and demanded answers for why companies like Samsung refuse to pay its subcontractors.
The assistant managing director also plans to send a complaint letter to the embassies of the other two UJV member countries.
Chanmongkol also said about the previous ratification that if the subcontractors decided to continue work on CFP, the group believed that TOP would consider not working with UJV for the issue that they caused. As such, the ratification is about an inability to work due to lack of payment due to the 28 subcontractors’ financial situation, but as for the strike, the ratification said that the contract is unjust and the group can not stop working, the group continue to work for 10 month with zero payment, result in the group having to protest, and today the group have come to protest the South Korean embassy, Samsung home country.
However, after sending the letter to the embassy, Chatmongkol revealed that the embassy said that they could not immediately respond, as they had to forward the letter to an involved party first and promise to collaborate on the matter. The group is pleased with the response since the goal is to ask why Samsung could not pay its Thai subcontractor in Thailand, if there is no further response, in the first week of 2025, the group will contact PTT PCL (SET: PTT), which is TOP major shareholder to seek resolution on the matter.
The report also added that the progress on the previous complaint to the prime minister, with Tawee Sodsong, Minister of Justice, receiving the letter, and on 12 December, the government has established a “committee” with representatives from the subcontractors, and will be discussing the matter next week.
Pol. Gen. Prasopchok Eampinich, Superintendent at Huai Khwang Police Station, who came to oversee the protest in front of the South Korean embassy, said that the leader has properly notified about the protest, and is exercising the right to public meetings according to the law. The embassy did not request any special protection. There are 70 policemen overseeing the protest.
