No Plan To Sell PTT: Thai Finance Minister Kittiratt

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PTT

No plan to sell PTT: Kittiratt

Business Desk

The Nation

While Korn raises questions about possible conflict of interest, finance minister denies any move to give up control of state enterprise

BANGKOK: -- Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong has dismissed news reports that the government plans to sell its stake in PTT to the Vayupak Fund.

In an address to Parliament yesterday, he said the government had no such plan. His firm denial followed consistent news reports that such a sale was imminent.

The reports brought criticism from the opposition as well as some senators, while the government failed to provide a clear response. PTT recently also asked for clarity, as it would no longer enjoy its current status as a state enterprise after the share sale.

Kittiratt insisted that the government would not reduce its holding in PTT to below 50 per cent while responding to a question by former finance minister Korn Chatikavanij during a Parliament session yesterday.

Korn also raised concerns about a possible conflict of interest, which in the past had led to a court conviction of former primer minister Thaksin Shinawatra.

The State Enterprise Policy Office has never discussed a plan to divest government holdings in PTT, Kittiratt told the member of the House of Representatives yesterday.

"It is good for the public that the government holds more than a 50-per-cent share; don't worry about it [privatisation]," he said.

The idea that the government should privatise the PTT came from an economist who suggested the move as a way for the government to reduce public debt, Kittiratt said. He was referring to a remark by Virabongsa Ramangkura, who had said that privatising PTT could reduce government debt by Bt700 billion and help the administration borrow more to finance infrastructure investment.

Korn said PTT was a state enterprise and people believed that it could be used as a tool to control energy prices.

He said people were now confused why the government could not cap the retail price of diesel at Bt30 per litre or control the price of natural gas. It also could not cancel the Oil Fund, Korn said.

Since PTT has a monopoly, if the government changed its organisation it would adversely affect the cost of living, he argued. PTT has assets worth more than Bt1 trillion and it made the highest profits in the country; its business has an impact on the public, he said.

Korn said the idea to privatise the PTT meant the government wanted the company only for profits.

"I suspect the government policy to reduce public debt by selling shares in PTT is more important than energy policies to help people cope with the rising cost of living," he said.

Moreover, the public now is concerned about conflict of interest arising from any privatisation of PTT because of the possible involvement of someone who has the power to direct government policy, said Korn, in a veiled reference to the possible involvement of former prime minister Thaksin in the plan.

He said a former executive of Shin Group, a former Thaksin subordinate, had been appointed as a PTT director last October. Another former subordinate of Thaksin has been appointed recently as the new energy minister, Korn noted.

"It now cannot be denied that the Shin Group has influence on the government's policies and energy policies."

Thaksin also has made investments in energy in Africa, is negotiating for investment in Lebanon, and meets with the Cambodian leader to exchange views on energy, Korn said.

"This could lead to a return of the conflict-of-interest issue, and how the government would prevent it."

Kittiratt had earlier backtracked on the proposal to sell some the government's stake in state-owned enterprises - PTT and Thai Airways International - saying on January 23 that it was not in a hurry after the proposal was widely opposed by academics.

He said on his first day as finance minister that the reorganising of the shareholding structures of state enterprises was a good idea, and there was no rush if people still didn't understand.

A day later, PTT staff expressed strong opposition to the plan to sell PTT shares to the Vayupak Fund, saying this could open the way for multinational companies controlling the country's energy business and leaving it with a lack of authority to supervise the sector.

-- The Nation 2012-02-10