Chinese firm cancels tablet contract

Chinese company, Shenzhen Yitoa Intelligent Control Co, has terminated contracts to supply over 800,000 tablets for Prathom 1 students, caretaker Education Minister Chaturon Chaisang said.

The contract was for the 2013 academic year, which ends next month.

The ministry will take back its 120-million-baht deposit and file charges against the company for further damages.

Mr Chaturon said that the Chinese company failed to meet delivery deadlines last December and the Office of the Basic Education Commission (Obec) received a letter on Thursday informing it that the company decided to terminate the two contracts it has to supply the tablets.

He said the letter cited national political instability in Thailand, a lack of understanding of the contract, communication problems and a fine for delayed delivery as reasons behind the cancellation.

''The company said that to avoid the tablet scheme from being further affected and any more loss of business for the company, it decided to terminate all signed contracts and apologised for it.

The company is reserving the right to appeal," Mr Chaturon said.

In June last year, Obec organised a one-day electronic auction to procure a total 1.63 million tablets for all Prathom 1 and Mathayom 1 (Grade 7) students and their teachers, worth 4.611 billion baht of the 2013 fiscal budget, under the second phase of the Pheu Thai government's One Tablet per Child scheme.

Shenzhen Yitoa Intelligent Control Co won two contracts to supply 804,742 tablets for Prathom 1 students countrywide — so-called zone 1 and zone 2.

A Thai firm, Supreme Distribution, grabbed the bid to supply 426,683 devices for Mathayom 1 students and teachers in Zone 3 covering central and southern provinces.

Later, the education minister scrapped the Supreme Distribution contract over bid-rigging suspicions raised by the Office of the Auditor-General. This case is still in the appeal process.

The auction for Zone 4 was held later and Jasmine Telecom won the contract to supply 402,889 tablets for Mathayom 1 students and teachers in northern and northeastern provinces.

According to their procurement contract, Shenzhen Yitoa was required to pay a fine of 0.2% of the procurement cost per day.

The committee would hold a meeting on Friday to discuss actions it would take against the company.

The ministry cannot deny the tablet procurements have been beset by problems right from the very start, Mr Chaturon said.

Share your thoughts

Discussion 1 : 06/02/2014 at 12:58 AM
Seems all Chinese companies are cancelling their contracts with PT. Sorry I mean with Thailand. Why can that be? For this cancelled contract though, we should happy they did. Hopefully they will also not want to build the HiSo-corruption train.
Discussion 2 : 05/02/2014 at 10:39 PM
Key words ... Take back the 120Billion deposit !!!!! Bangkok post you must follow up on the return of the deposit. Social media comments imply the local offices of the company are gone ????
Discussion 3 : 05/02/2014 at 07:58 PM
From the beginning you could go to Pantip and buy a better tablet for less money. And by the way, Pantip is not that cheap!
Discussion 4 : 05/02/2014 at 12:25 PM
When do the supporters of this government realize that whatever they govern was a failure and will be, with benefits only for the themselves in receiving huge summes of teamoney from contractors they deal with. Failures of all scams in billions of THB will be paid by the taxayer of Thailand as a result.
Discussion 5 : 05/02/2014 at 11:17 AM
Rice, tablet deals are all conducted in a fishy manner! When do they learn to do clean & honest biz???
Discussion 6 : 05/02/2014 at 10:37 AM
Did the PT government not do any due diligence before committing to a company which such a large order?
Discussion 7 : 05/02/2014 at 10:31 AM
Mr Chaturon said: "the letter cited national political instability in Thailand, a lack of understanding of the contract, communication problems and a fine for delayed delivery as reasons behind the cancellation." In the press statement beginning December 2013. Shenzhen Yitoa Intelligent Control Co., Ltd. has canceled the contract with the Thai Government for the 805,000 computer tablets: 1. The contract cleary said that the deposit was 10% while a bit more than 5% was paid. 2. The rest of the deposit was never made. 3. The THB dropped 20% in the period June-December. 4. Ignorance of Thai Gov. 5 -17 Source: Bloomberg 2 months later Thai...
Discussion 8 : 05/02/2014 at 08:58 AM
If I'm looking for quality, I happily accept the decision by China, to terminate the tablet contract.
Discussion 9 : 05/02/2014 at 08:48 AM
Just how many government officers cream off money from the Tablets deal ? The true cost of the tablets is probably only half of what is claimed for. This is just a false election promise that has no educational use. All of the students I know who have a government tablet ( The ones that still work ) only use them to play games.
Discussion 10 : 05/02/2014 at 07:45 AM
Good luck trying to sue a Chinese company in a Chinese court.
Discussion 11 : 05/02/2014 at 07:39 AM
The chickens are coming home to roost!
Discussion 12 : 05/02/2014 at 07:16 AM
Are the Thai people (the ones who vote) really that stupid to see these idiotic deals as anything more than a way to steal money? They aren't smart enough to see the problem yet they call for violence when people point out that they are stupid. Thanksin and his sheep know that keeping the people stupid is the way to manipulate votes. I can't even imagine how frustrating this must be for smart, educated Thais. Thanksin and Obama probably send each other Christmas cards or whatever you want to call that holiday these days.
Discussion 13 : 05/02/2014 at 07:04 AM
Well chinese company flee :). Yes, the true is, if you want quality, so you have to pay the price. Copies alltimes cheap, but never running - look to the chinese copy of german highspeed-trails - they made copies, but not understand the technology or know-how :)
Discussion 14 : 05/02/2014 at 07:02 AM
Another failed populous scheme the PTP promised for getting votes.
Discussion 15 : 05/02/2014 at 03:48 AM
What a joke. More of these are to come. Great thinking PTP.

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