Thaksin Sells Shin Corp Stake For Bt80 Billion

[Plus]

Yes, John, election issues aside, Shin deal is coming back huge. Kularb Keaw nominees and ITV fine are are in the legal works. Thaksin forces it under the table to take forever to sort it out, but the public pressure is mounting. The preliminary report, or interim report, or whatever they want to call it showed that Kularb Keaw is not Thai company. That's the whole deal off and possible jail terms.

ITV fine needs to be paid, the commitee to investigate what the government did wrong is funny - after they complete the investigation, ITV will sue them again. Why don't they just collect the fine now, as per courts rulings?

Is it round two of Thaksin vs. "charismatic figure"? He lost EC case fair and square already.

The thing is that the mystery opponent can strike anywhere - even convict Thaksin in perjury case brought by a farang, or dissolve TRT, or force ITV pay up 75 bil, and Temasek won't like it, or just declare the whole Kularb Keaw thing illegal.

It's difficult to be Thaksin right now.

[sriracha john]

Audit's tax probe into Shin sale to continue

Jaruvan's malfeasance charge won't stop it

The Auditor-General's Office will continue to seek explanations about tax exemption from the Revenue Department on the sale of shares in Shin Corp via Ample Rich even though a malfeasance charge has been filed against its auditor-general, Jaruvan Maintaka. Pisit Leelavachirophat, director of the OAG's legal division, said the OAG will continue doing its job as long as there is no ruling from the Council of State saying it has no authority to do so. The Council of State is expected to hand down its ruling in two weeks, said Mr Pisit. Earlier, an OAG source said the state audit office still needed to find out whether Revenue Department executives had neglected their duty by not taxing the family of caretaker Prime Minister Thaksin Shinawatra over the sale of shares in Shin Corp through Ample Rich. The Network of Northern People for Democracy (the wha?? ) yesterday filed a malfeasance charge against Khunying Jaruvan for inviting five top executives of the Revenue Department to clarify the department's handling of the Ample Rich and Shin Corp deal. Thepphanom Siriwitthayarak, chairman of the network, filed a complaint with Crime Suppression Division police, accusing the auditor-general of malfeasance.

Continued here:

http://www.bangkokpost.com/News/18Aug2006_news05.php

[John K]

I just love the way the Auditor-General's Office is a juggernaut with this. It more or less reminds me of a chase scene in a movie where the car being chased is dropping obstacles in the path of the chasing car. The legal action meant to discourage seems to have had the opposite effect. I guess the smell of Thaksin or his people dropping obstacles has become invigorating for some as it becomes an indicator that they are on the right path. Thaksin and his people have cause the public to build up an immunity to Thaksin’s legal games from repeated exposure one might say. The courts have put some of Thaksin’s suits on hold pending the outcome of the elections.

There is more that I could say but I think you know where I am going with this.

[Chang_paarp]

You look highly optimistic...

I refer to :

http://www.nationmultimedia.com/2006/08/16...ss_30011183.php

When you see that the Deputy Commerce Minister dares to say :

-that they need to a "define" the word "nominee" before to investigate the Kularb case (who owns Shin)

-that this task would take "2 months"

-and the whole process "5 years" !!!!

... then you have to ask yourself : we are living in wonderland. And Thaksin, if he remains in power, will eventually win the battle.

We all know where and who is the last counter power to Thaksin's megalomany... And we know that this counter power will not last forever.

<snip>

Maybe they should ask the Land Dept or Business Registration Dept, they can give a VERY detailed definition of nominee. It could be well worth wotching this set events as the result could have some ramifications the tax dept may not expect.

[sriracha john]

Suchai vows action if Kularb Kaew an illegal entity

Caretaker Deputy Premier Suchai Charoenratanakul said he would order the Information, Communication and Technology Ministry to take action against Kularb Kaew Co if it were found to be an illegal entity.

The Commerce Ministry is investigating whether Kularb Kaew, the company used by Temasek Holdings of Singapore to purchase the majority stake in Shin Corp from Thaksin Shinawatra's family, has violated Thai ownership law.

If it is found to be illegal, foreign ownership in Advanced Info Service, the major mobile-phone operator, would exceed the limit of 49 per cent.

Suchai said he would address the issue after the ministry completes its investigation.

Pipop Udorn, a lecturer at Thammasat University, said authorities should focus the inquiry on circumstantial evidence to see if Kularb Kaew held the Shin Corp shares on behalf of Temasek.

That could include the amount of dividends paid to Thai shareholders. If the ratio is 3 per cent, as is the case now, the remaining 97 per cent of dividends must be paid to foreigners, making the firm an illegal entity, he added.

- The Nation

[sriracha john]

Great News for the Office of the Attorney-General and Bad News for Anyone being Investigated by the Office of the Attorney-General:

HRH Princess Bajra Kitiyabha appointed prosecutor

HRH Princess Bajra Kitiyabha has been appointed to serve as a prosecutor at the Office of the AttorneyGeneral (OAG), the office said Sunday in a statement.

The Princess, who has graduated with a doctoral degree in law from America's Cornell University, had applied for a position of prosecutor and was selected after passing an oral examination, said spokesman Uthapol Yaisawang.

The Princess is highly qualified for the position, he said, adding that she is a full member of the Thai Bar and has legal experience as a military prosecutor with the Supreme Command Headquarters.

The Princess will start work at the OAG on September 1.

The Nation

[sriracha john]

Democrats vow to oppose shareholding probe delay

Government 'buying time' on Kularb Kaew Co deal

The Democrat party has warned Deputy Commerce Minister Preecha Laohapongchana to refrain from trying to needlessly prolong an investigation into the foreign shareholding in Kularb Kaew Co. Kiat Sittheeamorn, a party executive, said the plan by Mr Preecha to spend two more months verifying the foreign ownership of the firm, a holding company of Singapore's Temasek Holdings, was unnecessary. Mr Preecha also was not entitled to make such decision, he said, threatening to take legal action if there was an attempt to delay the investigation. Kularb Kaew is registered as a Thai-owned company. It was used by Temasek as a key vehicle in the takeover of Thailand's telecom giant Shin Corp in January. Mr Kiat said Mr Preecha's move to set up a new committee to further investigate the company's shareholding status and to define the term ''nominee'' was wrong. The ministry's Business Development Department had preliminarily concluded that Kularb Kaew was a proxy of Temasek, but Mr Preecha has set up a new committee to investigate.

Continued here:

http://www.bangkokpost.com/News/21Aug2006_news04.php

[Jai Dee]

Justice steadily pursues Thaksin

As the Thai Rak Thai ship steadily takes on water prompting several crew members to jump ship, with many more expected to desert in weeks or months to come, their dear leader, Thaksin Shinawatra, appears to be not in good shape either.

Remember the scandalous Shin Corp-Temasek deal which made newspaper headlines for weeks earlier this year and eventually fizzled out as it was overtaken by other more attention-grabbing or juicy news items? The controversial deal looks set to stage a comeback to haunt the dear leader and is likely to give him many sleepless nights.

And this time around it will not be only about the tax-free issue, which is still embedded in the minds of many of us though is rarely discussed publicly. It will include issues which have far more damaging implications for Mr Thaksin's political future and his family's wealth.

The Iron Lady of the Office of the Attorney-General, Khunying Jaruwan Maintakha, recently initiated a probe into the Revenue Department to find out why the department decided to waive taxes for Mr Thaksin's two siblings, Panthongtae and Pinthongta, regarding their sale of shares in the family-founded telecom company, Shin Corp, to Temasek Holdings, an investment arm of the Singaporean government, early this year.

More from the Bangkok Post here.

[Jai Dee]

PM 'hid shares' that were worth Bt329m

A senior Democrat yesterday alleged in a new book that caretaker Prime Minister Thaksin Shinawatra concealed shares worth Bt329 million.

Korbsak Sabhavasu - a party campaign strategist and its treasurer - made the allegation at a news media launch of his new book "Who Says The Rich Don't Cheat? - Part III".

The book discusses the Bt73-billion sale of Shin Corp to Temasek.

Korbsak told reporters the book claimed British Virgin Islands-registered shelf company Ample Rich Investment Co Ltd acted as a nominee holding shares in Shin Corp for the Thaksin family before those shares were sold to Singapore state investment company Temasek Holdings.

The book alleged Thaksin may have used Ample Rich to conceal shares owned by him in Shin Corp and valued at Bt329 million. The chapter is called "Was it money laundering?".

The senior Democrat said Thaksin claimed he sold the Bt329-million stake to Ample Rich. He added the prime minister failed to mention the Ample Rich shares in an assets declaration made to the National Counter Corruption Commission (NCCC).

He demanded Thaksin provide transaction records that proved he received payment from Ample Rich for the transfer. If Thaksin failed to comply, Korbsak would ask the NCCC to investigate Thaksin for failure to report shares held by Ample Rich as his nominee.

"If Thaksin has no record he received money from Ample Rich, it must be considered that he owned the shares held by Ample Rich. And, that would be regarded as failing to declare shares he owned in Ample Rich," Korbsak said.

"The book asks questions regarding the sale of shares in Shin Corp that Thaksin must explain to the people," Korbsak said.

He said his latest book would be his last on this subject because he believed Thaksin would definitely take a political break, temporarily or permanently.

But, Democrat Party deputy leader Alongkorn Pollabutr said he wanted to see a new Korbsak book that explained the use of nominee companies in the Shin Corp sale.

Kiart Sitthi-amorn, a Democrat economist, told the briefing Temasek might be violating the Alien Business Act by allegedly having Kularb Kaew Co Ltd hold its shares in iTV.

Kularb Kaew is one of three companies established in Thailand ahead of the Shin Corp sale to buy the shares. The other two are Cedar Holdings Co Ltd and Aspen Holdings Co Ltd.

Kiart alleged Kularb Kaew's iTV stake held on behalf of Temasek meant the Singapore company exceeded the ownership ceiling for a foreign entity.

He asserted the Commerce Ministry was delaying releasing results of an investigation into Kularb Kaew by launching a new investigation that looked at how nominee companies are treated by the act.

However, Kiart said the first probe determined that.

Democrat Party deputy secretary-general Korn Chatikavanij said yesterday he would today demand an explanation from the Securities Exchange Commission (SEC) about the relationship between Win Mark Co Ltd and the Shinawatra family.

Korn said the SEC would be asked to explain why Win Mark, which Thaksin said had bought shares from him in four companies, had forfeited its right to make a profit by later transferring all the shares to a daughter of Thaksin.

Source: The Nation - 21 August 2006

[sriracha john]

The Iron Lady Wolf of the Office of the Attorney-General, Khunying Jaruwan Maintakha, recently initiated a probe into the Revenue Department to find out why the department decided to waive taxes for Mr Thaksin's two siblings, Panthongtae and Pinthongta.

Modified to maintain compliance with numerous other references to Khunying Jaruwan with TV..

[sriracha john]

UPDATE

Tax probe near end

The Office of the Auditor General (OAG) plans to wrap up its investigation into tax issues relating to caretaker Prime Minister Thaksin Shinawatra's children by the end of September.

The "WOLF" is slowly.... methodically.... moving in for the kill.

Also, it's another date to track for those keeping score on the involved dates on the involved various PM's issues...

Pisit Leelavachiraphat, director of the OAG's legal division, said the office would try to finish the inquiry next month to give society what it wants to know - whether deals by Panthongtae and Pinthongta Shinawatra, Ample Rich Investments and Temasek Holdings are liable for tax.

"So far, we are satisfied with the Revenue Department's cooperation. Two officials are to due to meet us next week," he said.

Revenue Department director-general Sirote Swasdipanich went to the OAG yesterday to explain why the department did not tax Panthongtae and Pinthongta for the purchase of Shin Corp Plc shares from Ample Rich - before selling the shares to Temasek days later.

Sirote said after the three-hour session that the OAG had questioned the Revenue Department's operations as a whole, not only on the transactions. "I insist the Revenue Department has done its job within the legal context," he said.

Panthongtae and Pinthongta bought 329.2 million Shin Corp shares at Bt1 apiece and sold the shares at Bt49.25, netting a total of Bt15.88 billion. Had they been taxed, they would have been subjected to Bt5 billion in tax payments - based on the maximum 37 per cent personal income tax rate.

Auditor General Jaruvan Maintaka said yesterday the OAG may contact the Securities and Exchange Commission for more information.

"We need to get all the information, as this involves the Revenue Code. We can't proceed with recklessness," she said.

again, it's slowly.... methodically.... the "WOLF" is a dangerous creature.

Pisit said the office should also finish the investigation into the bomb scanner procurement for Suvarnabhumi Airport next month.

The OAG is kept a very busy organization trying to keep up with the PM....

- The Nation

[sriracha john]

Shin Corp probe to conclude next month

The Office of the Auditor-General expects to conclude its investigation of the controversial tax-free windfall received by the Shinawatra children from the Shin Corp sale by the end of next month. Senior investigators spent over three hours yesterday questioning Sirote Swasdipanich, director-general of the Revenue Department. They focused on the over-the-counter acquisition by Panthongtae and Pinthongta Shinawatra of over 320 million shares at one baht a share just before Shin Corp was sold to Singapore's Temasek Holdings at market price early this year for about 73 billion baht. Auditor-General Khunying Jaruvan Maintaka said information from the Revenue Department was insufficient and she would need some time to seek more information, possibly from the Securities and Exchange Commission.

Continued here:

http://www.bangkokpost.com/News/30Aug2006_news05.php

[womble]

I'm looking forward to next month, we've got so many potential red cards for Thaksin, I really don't think he can survive without using force.

Interesting times ahead.

[cclub75]

I'm looking forward to next month, we've got so many potential red cards for Thaksin, I really don't think he can survive without using force.

Interesting times ahead.

The most important piece of data might be : "information from the Revenue Department was insufficient and she would need some time to seek more information, possibly from the Securities and Exchange Commission."

We are living a "snail race". A global one.

Last example : the CC has given 30 days more to Thai Rak Thai Party to present its defence, regarding the accusation of bribing small parties to compete in last april's elections. It's the second time.

Just to remind you that this story could lead to the dissolution of TRT. Meanwhile, we are supposed to have general elections !

There is a total confusion, with a collision of multiple calendars.

My point is : it would be VERY easy to destroy Thaksin on the spot, from a judiciary point of view with all the pending actions and probes (Shin Sale/nominees/tax evasion, april elections etc.) We have dozen of them.

At that point : you have to wondering : why it's not happening ? Now ?

The "snail race" is the proof that there is a very intense struggle.

Don't make the mistake to think that :

-legal actions are pending

-so eventually, justice will prevail

-it's just a matter of time (and how long ?)

I still believe that Thaksin has the power to keep the game. He just needs an electoral victory. After his victory all the pending legal actions against him would end into the sand.

[Plus]

Legal actions take time to mature. If you look at the EC case - they have been warned but didn't take it seriously. It took quite some time and the last minute action by the court to jail EC commissioners, but still not in time to select the new EC and proceed with the elections.

Court dates are set, btw, just have patience.

[sriracha john]

Democrats call for findings of Shin inquiry to be released

The Democrat Party yesterday pressured caretaker Deputy Prime Minister and Commerce Minister Somkid Jatusripitak to release the findings of the ministry's investigation into part of the controversial Shin Corp sale.

It demanded the ministry reveal within seven days the results of its inquiry into an allegation that Thai shareholders of Kularb Kaew Co Ltd were holding Shin Corp's shares on buyer Temasek Holdings' behalf.

The opposition party claimed that Somkid and some officials were delaying the release of the findings because of political reasons, which might be subject to the Criminal Code's Article 157 concerning negligence.

Kiat Sittheeamorn, chairman of the Democrats' audit committee, yesterday submitted a letter to Somkid, who was not available to meet him. Kiat had to send the letter via Commerce Ministry permanent secretary Karun Kittisataporn.

The ministry recently announced that it would indefinitely delay its inquiry into the Kularb Kaew case, citing very complicated legal issues needing more time for investigation.

The investigation started seven months ago to find out whether Kularb Kaew and other related companies were nominees of Singapore investment giant Temasek Holdings.

Kiat said the case should be finalised in the short term because it is the most peculiar business transaction ever to have occurred in Thailand.

By lengthening the investigation, the ministry has destroyed investor confidence and will harm the image of the country, he added.

"Khun Somkid should show his spirit and high responsibility to do this [complete the inquiry] under fair practice, despite the fact that the case involved a leader of the government," said Kiat.

His letter demanded the immediate release of results from the Business Development Department's investigation. Karun accepted the letter and said he would hand it to Somkid later.

In the letter, the Democrats called on Somkid to comply or to give a clear explanation why the investigation has been delayed. The letter was signed by the party leader, Abhisit Vejjajiva.

Kiat said the ministry's claim that it was delaying the investigation to find a definition of the word "nominee" was unusual.

"It can probe by investigating the source of the company finances and VAT payment record," said Kiat.

"It is very obvious that Kularb Kaew is a nominee and different from other foreign firms. No one who invests billions and takes 51 per cent of the company will accept taking only 3 per cent of the firm's income."

In addition, the government's plan to investigate all foreign-owned companies in the Stock Exchange of Thailand (SET) could confuse foreign investors, he said.

Early this week, caretaker Finance Minister Thanong Bidaya said the investigation had to be postponed because many foreign companies were also violating the Alien Business Law.

Besides, any firm with more than a 5-per-cent foreign shareholding is asked to file documents to the SET so that it can investigate whether it is a nominee.

Kiat opposed the SET action, saying that under Thai law foreigners can take more than 49 per cent of a company if they ask for approval.

Meanwhile, Yanyong Phuangrach, deputy permanent secretary at the Commerce Ministry, said the ministry will invite those complaining about the case, including the Democrat Party and former senator Chirmsak Pinthong, to discuss the matter next Friday.

Asked why the ministry had not recruited a representative from the Bank of Thailand to join the investigation team, Yanyong said it had already received clear documents from all commercial banks and so there was no need to ask for assistance from the central bank.

- The Nation

[womble]

Another date for the diary, october 9 could set a precendent on tax law that directly effects the shin sale.

FOCUS / INVESTIGATION OF SHIN CORP DEAL

Sirote says he's had tougher times

Revenue Department chief claims clear conscience about the tax-free status of 73-billion-baht share sale

Sirote Swasdipanich, the reserved and discreet director-general of the Revenue Department, has been in the hot seat for several months after the family of caretaker Prime Minister Thaksin Shinawatra and his in-laws, the Damapong family, sold their 49.6% stake in Shin Corp to alleged nominees of Temasek Holdings in January and netted 73 billion baht tax free.

The public continues to debate whether the 73 billion baht should be taxed. And the Revenue Department has come under severe criticism.

Asked if the Shin Corp deals have brought him the toughest time in his professional life, Mr Sirote said no. The toughest time was when he was director of the Fiscal Policy Office. At that time, the office had to draw up the country's oil policy.

"I don't stress myself on this matter [the Shin deal]. The evidence is my physical health. It's still okay. And my mental health is okay, too," said Mr Sirote.

His family life is also well-shielded from any repercussions from the Shin sale controversy.

"My wife feels the controversy is something rather normal. My life after office hours remains the same. I still see my friends. This case hasn't changed my life," he said.

As the top man in the Revenue Department, he said he has to remain calm and steady while the controversy swirls and the department is criticised by outsiders.

"Otherwise, the morale of my subordinates will be shaken," he said.

Besides public censure, the Office of the Auditor-General (OAG) is investigating whether Revenue Department executives were negligent in their duty by not taxing the children of Mr Thaksin over the acquisition of Shin Corp shares from Ample Rich Investment.

The OAG will conclude its investigation by the end of the month. The public will then know if the share transaction should have been taxed.

Last Tuesday, Mr Sirote was questioned for about three hours by OAG investigators.

Mr Sirote said following the public uproar over the tax-free deal, he received letters from people who said they would no longer pay taxes to the Revenue Department.

"They can do whatever they want. But don't forget that once they decline to pay taxes, revenue officials will have to take action against them," he said.

"I am confident in what I have done," he said.

"My parents were teachers and we lived a simple life. The most important things my parents taught me were to do the right thing, be honest, persistent and grateful to others," he said.

Mr Sirote said he has lots of friends. Of course, over the years, some of them asked him to help them get out of paying taxes.

"I simply asked my friend if this is what a person should ask his friend to do. The friend then backed off," he said.

This confidence might be partly responsible for the refusal by Mr Sirote and four other top Revenue Department executives to meet with OAG investigators probing the Shin deal's tax exemption.

On the urging of the Senate, the OAG began its investigation into the Shinawatra family's tax liability in the Shin Corp share deal in July, more than six months after the January transaction.

The focus of the probe is on the acquisition of more than 320 million shares by Panthongtae and Pinthongta Shinawatra at one baht a share from the Shinawatra family's Ample Rich Investment Co.

Following the acquisition, the Shinawatra and Damapong family's 49.6% stake in Shin Corp were sold to alleged nominees of Temasek Holdings, Cedar Holdings and Aspen Holdings, at the market price of 49.25 baht per share.

However, the Revenue Department argued at the time that the OAG did not have the authority to question its officials and asked the Council of State to rule on the OAG's authority to look into the department's tax collection.

"Initially, I got the invitation letter and request for information from an OAG investigator. So, I wasn't sure if the person who signed the letter had the authority to look into my agency's management. I had to consult the Council of State because what we were asked to do was to reveal certain taxpayers' private information. Such information is protected by revenue law," said Mr Sirote.

Later on, Auditor-General Jaruvan Maintaka wrote him a letter, seeking cooperation from the Revenue Department on the OAG investigation and he agreed.

Last Tuesday, OAG special audit director Pisit Leelawachiropas said the investigation team found the Revenue Department had done everything in line with the law and the team was satisfied with information the department supplied.

Nevertheless, Khunying Jaruvan said information from the Revenue Department was insufficient and she would need some time to seek more information, possibly from the Securities and Exchange Commission.

The Revenue Department earlier defended its decision not to tax the Shinawatra family on the acquisition of Shin Corp shares from Ample Rich by Mr Thaksin's children on grounds that this was done at a price lower than the market price. Consequently, Mr Panthongtae and Ms Pinthongta did not have any tax liability from the transaction.

Meanwhile, Raungkrai Leekitwattana, adviser to the auditor-general, insisted Mr Thaksin's two children should be taxed after they bought Shin Corp shares from Ample Rich and resold them to Temasek nominees.

He argued that people purchasing valuables at low prices should be taxed. If not, it would create a loophole in the tax law for corrupt people to exploit.

In future, if anybody wanted to bribe a politician or a civil servant, he could sell valuables or stocks to the other party at a price much lower than the market price. The transaction would not be taxed either, he said.

A former OAG official himself, Mr Raungkrai sued the Revenue Department for applying double standards by levying taxes on him when he bought shares in Bangkok Expressway Plc from his father at below the market price, but then failed to impose tax on Mr Thaksin and his wife Khunying Potjaman when they did the same in 2000.

When taxing Mr Raungkrai, revenue officials said the difference between market price and the price of shares he purchased from his father was considered his earnings, and earnings should be taxed.

The case was debated in the House of Representatives, prompting the Revenue Department to return Mr Raungkrai the money he paid.

Mr Raungkrai, however, believed his income tax payment was legitimate, and sued the department for not taxing him as this would provide a precedent for Mr Thaksin's case.

The Tax Court will rule on Oct 9 if his tax payment was legitimate, Mr Raungkrai said

Bangkok Post

[John K]

As Thaksin changed this law shortly before, it is hard to say who is right and who is wrong. Loopholes I would imagine are not found the first day unless they are deliberately part of the law.

[sriracha john]

TEMASEK-SHIN DEAL

Probe team to question 'proxies'

Representatives of Kularb Kaew Co Ltd, Cedar Holdings Co Ltd and Siam Commercial Bank have been summoned for a meeting on September 18 with a Commerce Ministry investigative committee, which will ask them to explain their financial ties to Temasek Holdings.

Acting Senator Chirmsak Pinthong will join the meeting as representative of the Senate committee which asked the authorities to investigate the nominee issue.

Yanyong Phuangrach, deputy permanent secretary of the Commerce Ministry, said yesterday that the ministry could not yet divulge details of the investigation.

"The investigative team has set a time frame for the investigation. But we cannot give an exact date as the team may come under pressure that would interfere with the results," said Yanyong.

The meeting is part of an investigation into whether the firms were proxies for Temasek Holdings, when Singapore's investment arm led a group of investors to take over Shin Corp Plc in January.

Kularb Kaew is a major shareholder of Cedar, while SCB holds 10 per cent of Cedar, which in turn owns 51.98 per cent of Shin Corp.

The investigative committee yesterday met the chairman of the Democrat Party's audit committee, Kiat Sitthee-amorn; deputy secretary-general of the Democrat Party, Thaworn Senneam; and Weng Tojitrakarn, president of the Federation for Democracy, to discuss the progress of the ministry's investigation.

Yanyong said the ministry had to collect more information on three issues, including shareholders' actions, nominee regulations and any repercussions of the judgement, to ensure free and fair investigations. The ministry will later call a meeting of representatives from Cyprus, an alleged foreign shareholder, to clarify the charge.

Yanyong defended himself and the investigative team, denying that they were dragging their feet in the case to favour certain politicians. He said the team has to produce a clear report to ensure transparency.

This may be a watershed case for other foreign business cases, he said. To protect the confidence of foreign investors in the Kingdom, he said, the team must clarify all issues, and not concern itself with the length of time the investigation is taking.

Kiat has urged the ministry to release the findings soon.

"The more the delay in releasing the report, the more the benefits for a certain company and some politicians," he said.

The Democrat Party last Friday pressured caretaker Deputy Prime Minister and Commerce Minister Somkid Jatusripitak to expedite the ministerial investigation.

The party called on Somkid, as head of the ministry, to take the responsibility for solving the problem. Kiat challenged Somkid to come clean before the public in a television programme.

In addition, Kiat said the ministry had no authority to start a new investigation as the Business Development Department had full charge of the investigation.

Kiat said the party would study the law related to the establishment of the committee, whether it breaches Act 20, referring to higher echelons of power, including administrators.

Weng, as a president of the Federation for Democracy, also urged the ministry to urgently make the investigation report public.

He said it was obvious that Kularb Kaew was a nominee. No person who takes 51 per cent of a company will accept just 3 per cent of the firm's income.

- The Nation

[sriracha john]

SHIN CONTROVERSY

Direct link to Temasek found

Singapore investor believed to have helped two Thais to buy shares in Kularb Kaew

Kularb Kaew, Cypress Holdings, Cedar Holdings and Aspen Holdings - the four companies with direct and indirect holdings in Shin Corp - share an identical office address at Thai Wah Tower II, according to findings of the Business Development Department.

A classified department report obtained by The Nation showed the four companies all reside at Thai Wah Tower II 21/125-128.

The 10-page report is the result of a months-long investigation that commenced on February 17.

It looked into the Thai and foreign shareholdings of the four companies, their sources of funds and management. Company documents were looked at as were their commercial banks and related agencies. Individuals were questioned.

The Commerce Ministry is yet to release the report but has set up a new investigation team chaired by deputy permanent secretary Yanyong Phuangrach.

He expected that investigation would be wrapped up within two months, or shortly after the general election.

Critics accuse Singapore's Temasek Holdings of taking over Shin Corp using nominee companies.

One critic quoted from Temasek's website that claimed the state investment arm owned 96 per cent of Shin Corp.

In a statement yesterday, Temasek said its direct holding in Shin Corp was 44 per cent, through Aspen. The other 52 per cent was owned by Cedar, which has Kularb Kaew and Siam Commercial Bank as major shareholders.

In its quest to discover if Kularb Kaew was a Temasek nominee that, together with Thai investors, owned 96 per cent of Shin Corp, the department found Temasek helped Pong Sarasin and Suphadej Poonpipat buy Kularb Kaew shares.

Based on documents from Siam Commercial Bank - where transactions between Kularb Kaew, Cedar and Cypress took place - the department found a sum of Bt131.54 million was transferred to a Kularb Kaew account from a Cypress account at the bank's Ratchayothin Branch.

The amount was equivalent to the value of shares held by Pong, one of the company's seven founders, the department noted.

Meanwhile, the department found Suphadej borrowed Bt32.86 million from SCB to finance Kularb Kaew. Cypress guaranteed the loan.

"Regarding money coming to Cypress, money from Cypress to Kularb Kaew, Cypress transfers to back Suphadej's loan and Cypress payment for shares in Cedar, all was from Fullerton Private, a unit of Singapore's Temasek," the department said in the report.

Referring to Surin Upatkoon's investment in Kularb Kaew, the department found Surin received Bt2.72 billion from HSBC Bank.

The bank informed the department it was asked by Surin to transfer the money on March 10 from an account belonging to Fairmont Investments Group. Fairmont, registered in the British Virgin Islands, has Greenland Co as its authorised manager. Greenland transferred that authority to Surin.

Since the department started its investigation, it sought to question 10 individuals involved in the four companies. Eight submitted to interviews, including Pong and Suphadej. Not submitting to questioning were S Isawaran and Chai Yue Joo, two of three people authorised to sign bank accounts on behalf of Kularb Kaew, Cedar and Cypress.

Pong told the investigation he was persuaded by Temasek representative Isawaran to buy Kularb Kaew shares from Somyot Sutheerapornchai, a lawyer for Cypress.

He told the department he agreed to hold preferred shares - despite their inferior status compared with common shares - due to a fixed dividend of 3 per cent a year which was close to current commercial deposit rates.

Moreover, there was a condition the preferred shares could be converted to common shares within one year. Pong was approached to be Shin Corp chairman, too.

Meanwhile, Suphadej explained he spent between two and three weeks considering an investment in Kularb Kaew. He decided to invest because he was an independent director at Advanced Info Service, a flagship company of Shin Corp.

- The Nation

[sriracha john]

UPDATE

Temasek replaces Shin Corp deal-maker

SINGAPORE — Singapore's state-owned investor Temasek Holdings Pte. Ltd., whose purchase of a controlling stake in a Thai telecommunications company is being investigated by Thai authorities, said Thursday it has replaced its chief investment officer.

Charles Ong was replaced by Jimmy Phoon as chief investment officer, while Ong would take on a newly created position of "chief strategist," Temasek said in a statement. The change was part a periodic staff rotation exercise, it said.

In his new position, Ong "will support the review of markets and the development of longer-term strategies for the organization," Temasek said.

Phoon, a former Standard Chartered Bank investment banker, joined Temasek in 1999. He has been in the limelight recently for his stout defense of Temasek's US$1.9 billion (euro1.55 billion) investment in Shin Corp., the family telecommunications empire of Thaksin Shinawatra, the former Thai prime minister who was ousted in September.

The deal drew widespread protests in Thailand because it placed strategic telecommunications assets in foreign hands, and because it was structured so that Thaksin's family did not have to pay capital gains taxes on it. Calls for Thaksin's resignation caused political tension that culminated in the Sept. 19 coup.

Thai authorities were still investigating the Shin Corp. deal, with a major issue being whether the use of Thai nominee firms by Temasek constituted a breach of laws limiting foreign shareholdings in Thai companies to 49 percent.

- Associated Press

---------------------------------------------------------

I believe the "chief strategist" position at Temasek is equivocal to a position with the Thai Ministry of Inactive Posts...

[Mid]

SHIN CORP ROW

Temasek happy as pressure eases off

Mon, April 2, 2007 : Last updated 13:26 pm (Thai local time)

Singapore's Temasek Holdings has described as "positive" Finance Minister Chalongphob Sussangkarn's comments on Friday that Thailand should not and likely will not take back telecom giant Shin Corp.

"We welcome the assurance of Finance Minister Chalongphob. The statement he made on Friday signals a very positive development," said Temasek's chief for Thailand Goh Yong Siang.

The Nation

apparently a suitable period of morning is over ....................................

formatting

Edited April 2, 2007 by Mid

[sriracha john]

UPDATE... Temasek wants to unload Shin

Thai Liquor Tycoon May Take Large Chunk Of Shin Corp.

HONG KONG - Two years after encountering widespread criticism in Thailand for its purchase of the country’s telecom crown jewel, Shin Corp., from then Prime Minister Thaksin Shinawatra, Singapore’s state investment agency Temasek has reportedly tried to unload part of its troublesome stake in the Thai firm.

Lately, Temasek has closed in on a potential buyer, Thai liquor tycoon Charoen Sirivadhanabhakdi, and the chances of sealing a deal may have increased in recent days.

Shin Corp.’s shares racked up close to a 10% gain on Friday and advanced a further 2.68% on Monday, to 28.75 baht, on news in Thai local media that an agreement could be struck between Temasek and Charoen, the second-richest man in Thailand according to Forbes’s 2007 rich list, with a net worth of $3.3 billion.

The source of speculation was a report on Friday in the daily Thai Rath, which said that Charoen, the founder of Singapore-listed Thai Beverage, was interested in investing in Shin through a share swap with Temasek. Many stock market analysts expressed disbelief over Charoen’s willingness to put himself in a politically sensitive position to help Temasek reduce its 96.12% stake in Shin to the 49% level that Thai law currently allows for foreign investment in a telecom company.

But precisely because of the political sensitivity involved, Temasek’s advisers were astute in placing their bets on Charoen. To begin with, there are not many Thai billionaires or firms with the abundance of cash necessary to buy Shin. Charoen’s Thai Beverage, along with Siam Cement and the Charoen Pokphand Group, controlled by Dhanin Chearavanont, was one of the three companies tipped by analysts as rich enough to foot the bill. That is, if Thaksin’s family is excluded.

Singapore’s Business Times on Monday illustrated the frenzied attempts by Temasek to unload part of its Shin stake, citing an investment banking source as saying that it had approached even Thaksin, who is living in exile in London since being ousted by a military coup, for a possible sale, in addition to Charoen and other Thai tycoons such as agro-business magnate Dhanin. Temasek initially bought 49.6% stake in Shin in January 2006, for nearly $2 billion, but its stake was later increased by a general offer it was compelled to make.

With its Beer Chang brand and Mekhong whiskey ranking as top sellers in Thailand, Thai Beverage has as much as 60% of the country's beer market and 74% of its spirits market.

Charoen listed Thai Beverages on the Singapore exchange in May in 2006, months before Thaksin lost his premiership, prompted by a political campaign at home to thwart his listing an alcohol-producing business in a Buddhist country like Thailand. He was seen as a potential threat to Thaksin’s rule at the time.

Buying a strategic stake from Temasek in Shin would serve as fitting payback for the troubles Charoen encountered at home two years ago.

- Forbes

[Plus]

I read that Temasek approached him twice before he even considered their proposal. The main reason for his relactance was that he has never had anything to do with telecoms and that growth prospects for telecoms are low - that's why Thaksin and Benjarongs before him cashed out in the first place.

Temasek also approached CP group but they have their own True brand that brings nothing but debts, and they wouldn't pass monopoly laws.

They even approached Thaksin himself, reportedly.

[dr_Pat_Pong]

thieves are thieves. ALWAYS.