Thai Officials Seek US Help In Bt64m Tobacco Monopoly Bribery Case

[webfact]

Officials seek US help in Bt64m bribery case

By The Nation

The Finance Ministry has submitted a written request to the Justice Ministry, seeking liaison with the US Justice Department in retrieving information and evidence from the US Securities and Exchange Commission concerning Bt64 million in bribes taken at Thailand Tobacco Monopoly.

Permanent secretary for finance Sathit Limpongpan yesterday said that once the documentation arrived, it would be used to trace which senior TTM officials were in place during 2000-2003 when the bribery took place.

"At present, we have no idea who was involved. It is also unclear which state agency will take responsibility for this case, either the Finance Ministry or the Justice Ministry. The Department of Special Investment may be assigned to take care of it," he said.

According to Finance Ministry information, Suchon Watanapong-vanich was TTM managing director during the specified period. He took office in 2000 and retired in 2006.

TTM's board of directors was, however, subject to frequent change. From 1998 to October 2000, the chairman was Somchainuk Engtrakul, after which Vuthichai Pongprasit held the post until October 2001.

Sathit himself was the chairman from October 2001 until 2003, before handing the position to Uthit Thamwathin.

National Anti-Corruption Commission spokesman Klanarong Chantik said the agency was investigating the issue, and likened the case to the bribery case involving former Tourism Authority of Thailand governor Juthamas Siriwan.

Juthamas has been accused of taking bribes from two American businessmen, in return for the rights to organise several World Film Festival events in Thailand.

NACC member Methee Khrongkaew yesterday flew to the US to retrieve the information required for the TTM case.

Supa Piyajitti, director-general of the State Enterprise Policy Office, which oversees TTM, said that once the names of the officials involved were known, the ministry would file criminal lawsuits against those who were retired and file criminal lawsuits and launch disciplinary action against those who were still in public office.

"The [not-yet-retired] officials allegedly involved could be suspended and resume office [if found not guilty] when the case is cleared. Certainly, they can defend themselves against the charge,"she said.

Alliance One International, a Swiss corporation and a subsidiary of US-based tobacco company Alliance One International, pleaded guilty last Friday in the US to bribing officials in Thailand to secure tobacco contracts, according to the US Justice Department.

It was charged with conspiracy to violate the US Foreign Corrupt Practice Act and violations of the anti-bribery and books and records provisions of the statute. The Justice Department said the company had paid bribes to Thai government officials to land contracts with TTM.

Alliance One also agreed to disgorge about US$10 million (Bt320 million) in profits to the Securities and Exchange Commission in a civil settlement.

In a related case, a Brazilian subsidiary of US-based Universal Corp, another tobacco company, pleaded guilty on Friday to violations of the Foreign Corrupt Practice Act.

Prosecutors said Universal Leaf Tabacos had collaborated with Dimon and Standard Commercial Corp, which merged in 2005 to form Alliance One, to claim a share of the Thai tobacco market.

Dimon and Standard paid a combined $1.2 million in bribes to Thai officials, the department said. Universal admitted to paying $697,000 in kickbacks to TTM officials.

The plea agreement was filed in US District Court for the Eastern District of Virginia. Universal Leaf Tabacos agreed to pay a $4.4-million criminal fine and will pay another $4.5 million under a settlement with the Securities and Exchange Commission.

-- The Nation 2010-08-11

[moetownblues]

Thailand asking another for help. This must be a huge slap in the face for them

[slapout]

The game of musical chairs may be enough of a smoke screen to hide some of the people involved, statue of limitations may enter into the hunt for justice. Wonder who will spring for the excess baggage charge on return trip? Hope action against those deserving, takes place in a more accelerated time frame, than the similar case referenced.

[OzMick]

Hard to see any negatives in this. Corruption uncovered, prompt action to obtain details, which I'm sure will be supplied. The acid test will be whether prosecutions are carried out and penalties applied that are sufficient deterrents. The article says that it may be difficult to pick the culprits - couldn't the companies be forced to supply this information? Normal in most criminal cases that heavier penalties are given if you refuse to give up accomplices.

[Ricardo]

As always, it's good to see corruption being exposed, and an attempt made to discover whose hands were dirty.

[animatic]

Thailand asking another for help. This must be a huge slap in the face for them

Except that is the source for the information about who what where and when.

Not all Thai's are so locked into face lose fear, that they can act rationally,

when the big picture says lookie here, and win.

[Acharn]

Thailand asking another for help. This must be a huge slap in the face for them

Well, given the time frame I guess the people involved would be friends/allies of Thaksin, so of course the current government would love to find ways to prosecute them. The Public Prosecutor's Office has no trouble making troublesome cases hang around until everyone has forgotten about them (see e.g., PAD), but even they would be embarrassed to prosecute cases based on imaginary evidence (or maybe not).

[SamritT]

"To trace which senior TTM officials were in place during 2000-2003 when the bribery took place." 2000-2003, isn't that Thaksin time?, another one of Thaksin corruption?

[rubl]

Thailand asking another for help. This must be a huge slap in the face for them

Well, given the time frame I guess the people involved would be friends/allies of Thaksin, so of course the current government would love to find ways to prosecute them. The Public Prosecutor's Office has no trouble making troublesome cases hang around until everyone has forgotten about them (see e.g., PAD), but even they would be embarrassed to prosecute cases based on imaginary evidence (or maybe not).

Wel given the timeframe I doubt anything could be done before now. Remember the NCCC case against K. Thaksin in 2001. It was ruled he didn't try to hide some of his fortune, he made a very 'honest' mistake.

[rubl]

"To trace which senior TTM officials were in place during 2000-2003 when the bribery took place." 2000-2003, isn't that Thaksin time?, another one of Thaksin corruption?

This is a so-called leading question. It suggests you already know the answer, but like others to give it. Not done, my dear.

[easybullet3]

asking the USA for 'help' in a bribery case!! (USA - well known for senators and government sectors 'accepting' donations from almost all industries... (especially: tobacco and pharmaceuticals) !!

i think that its been common practice in almost any country across the globe for LARGE industries to 'donate' money to the government... and then they get favorable treatment.

[asiawatcher]

And like the case against Juthamas Siriwan and her daughter - they still remain at large and have not been charged in Thailand with anything - and their 'take' was far greater as the rest has not been disclosed as the festivals were not her only source of income? You think this one will be any different? Seems in Thailand the top dogs (pun intended) have the right to put their hands out and demand kickbacks and it is all acceptable. Thieves all...

[rubl]

And like the case against Juthamas Siriwan and her daughter - they still remain at large and have not been charged in Thailand with anything - and their 'take' was far greater as the rest has not been disclosed as the festivals were not her only source of income? You think this one will be any different? Seems in Thailand the top dogs (pun intended) have the right to put their hands out and demand kickbacks and it is all acceptable. Thieves all...

The last I can find on K. Juthamas (who was once deputy leader of Puea Pandin Party) is that's she indicted in the USA. Don't know how things stand now.

[Phuket Stan]

There was something in the press a couple of weeks ago that the charges against her were almost ready to present to the court...when that is who knows??? Pretty much an open and shut case against after what went down in the USA court trial

[rubl]

There was something in the press a couple of weeks ago that the charges against her were almost ready to present to the court...when that is who knows??? Pretty much an open and shut case against after what went down in the USA court trial

Yes and no. Thai laws are not (always) in line with international practices. K. Thaksin lost a case in the USA against a former business partner and the court here more-or-less said 'so what'.

[metroman]

Bribes are considered "revenue enhancement" and are not really frowned upon.

[metroman]

Does anyone know what happened to the Director of the Art Dept.(?) who was allegedly bribed by Americans to host the event?