Egat Listing Shot Down By Administrative Court

[george]

Urgent: Egat listing shot down by Administrative Court

The Supreme Administrative Court ruled Thursday to prohibit the government's plan to list Egat Plc in the stock market, citing conflict of interest in the committe in charge of listing preparations and citing flawed preparations for the privatisation.

The court ruled that Olarn Chaipravat, the chair of the preprations committee, was not qualified for the job because he had conflict of interest.

The court also reprimanded the government for failing to properly carry out arrangments for public hearings before going ahead to issue two royal decrees to list Egat.

The court room is filled with cheers once the ruling is read as protesters led by the People's Alliance for Democracy hailed the court's decision.

More details to follow.

[cclub75]

Brillant victory !

And what a blow for the "clique"....

"Conflict of interest"... the word is weak... but it says everything.

[sriracha john]

Following on the heels of Supinya's court victory over Shin Corp. gives reason to hope for Thailand....

[Jai Dee]

Egat listing shot down

The Supreme Administrative Court ruled Thursday that the government's plan to list Egat Plc in the stock market was illegal due to flawed preparations and conflicts of interest in the committe in charge of listing preparations.

The Supreme Administrative Court revoked the two decrees that supported the Electricity Generating Authority of Thailand's privatisation.

The court expressed their concerns over the formation of the committee that worked on the state agency's corporatisation process, the improper hosting of public hearings, the power of the new entity after the privatisation, as well as the transfers of national assets back to the state after the privatisation.

"The government has abused its power in privatising the state enterprise," the court said in the statement.

The court also noted that the ruling of the case could affect other privatisation plans.

The court did not address the issue whether the Egat privatisation was in conflict of the Corporatisation Act but the court pointed out that the preparations leading to issuance of the two decrees were flawed.

The court spent about two hours in detailing why it believed the preparations for the privatisation of Egat were flawed.

Among other things, the court pointed out that Olarn Chaipravat, the chair of Egat's corporatisation committee, was not qualified for the job because he had conflict of interest. The court also ruled that there were attempts to hide the conflict of interest of Olarn.

The court said Olarn was vice president of Shin Corp with had conflict of interest with Egat.

The court also ruled that the government failed to properly carried out arrangements for public hearings before going ahead to issue the decrees.

The court noted that Parinya Nuwalai, chairman of public hearing committee, was not qualified for the job because at that time he was vice minister for Natural Resources and Environment Ministry and thus holding a political position, which could affect neutrality.

The court also noted that although the government held five public hearings the government failed to advertise the hearings for three consecutive days in advance to allow people to register for taking part in the hearing. The government also failed to place advertisements of the hearings on TVs and radios.

The court room was filled with cheers once the ruling is read as protesters led by the People's Alliance for Democracy hailed the court's decision.

The suit was filed by the Foundation for Consumers and eight other people.

The court room was packed by about 200 people including many Egat employees.

Source: The Nation - 23 Mar 2006

[Jai Dee]

EGAT's share sales rejected

The Supreme Administrative Court in its verdict Thursday rejected Thaksin Administration's plan to list Egat Plc on the stock market, saying such share sales was unlawful.

There were flaws in the privatisation process which included the public hearing and appointment of corporatisation committee, citing conflict of interest in the process.

The Supreme Administrative Court therefore revoked the two decrees issued last year by the government to support the Electricity Generating Authority of Thailand's privatisation.

The court also expressed their concerns over the power of the new entity after the privatisation especially on land appropriation, saying the government has abused its power in privatising the state enterprise.

The court spent about two hours announcing the verdict which also said Olarn Chaipravat, chairman of Egat's corporatisation committee, was not qualified for the job because he had a conflict of interest.

The court said Olarn was vice president of Shin Corp which would be a conflict of interest with his duties at Egat.

The verdict came to the delight of the Anti-Thaksin protesters led by the People's Alliance for Democracy, cheering outside the court room.

Source: Bangkok Post - Breaking News - 23 Mar 2006

[Jai Dee]

Energy Minister revealed plans after the Court decision cancelling the privatization of EGAT.

Energy Minister Viset Choopiban (วิเศษ จูภิบาล) revealed plans after the Supreme Administrative Court’s decision canceling the two decrees on privatization of Electricity Generating Authority of Thailand (EGAT).

The Supreme Administrative Court ordered the cancellation of the privatization of EGAT Public Company in the stock market, by annulling the two decrees on privatization of the EGAT Public Company Limited yesterday.

Mr. Wiset revealed after consulting with agencies related with distribution of shares in EGAT after the decision that the ministry is willing to follow the order, adding that related agencies will discuss with the Office of Council of State about the issues.

However, he said that the EGAT shares which have been distributed to EGAT employees will be bought back, adding that EGAT will consult with the revenue department about the matter again. Mr. Wiset added that EGAT will be told to find a new source of fund for the construction of new power plants, saying that it may ask the Finance Ministry to act as guarantor.

In addition, Mr. Viset said that the ratio of electricity generation will still be specified by the committee on national energy and electricity regulators, as the court decision orders only the cancellation of the two decrees which involved the setting up of the committee on electricity business headed by Mr. Cherdpong Siriwich (เชิดพงศ์ สิริวิชช์).

Source: Thai National News Bureau Public Relations Department - 24 March 2006

[Jai Dee]

PM accepted the Supreme Administrative Court's decision cancelling the privatization of EGAT.

Prime Minister Thaksin Shinawatra has accepted the Supreme Administrative Court’s decision ordering the cancellation of the two decrees on privatization of Electricity Generating Authority of Thailand (EGAT).

Prime Minister Thaksin said that the government has to respect the court's decision. As for the court’s reasoning that the privatization did not follow legal processes, he said that the Energy Ministry will have to take care of the matter.

The premier also said that the Supreme Administrative Court’s decision may result from the uneasiness among the people, some of whom are displeased with and misunderstand the government.

Source: Thai National News Bureau Public Relations Department - 24 March 2006

[sriracha john]

PM accepted the Supreme Administrative Court's decision cancelling the privatization of EGAT.

Prime Minister Thaksin Shinawatra has accepted the Supreme Administrative Court’s decision ordering the cancellation of the two decrees on privatization of Electricity Generating Authority of Thailand (EGAT).

.... how benevolent, condescending, and "big" of Mr. Big to "accept" the Supreme Court's decision. What other choice does he have? Appeal it to the Penultimate Court? The Supreme Court IS the final word. What a f*cktwat he is.

The premier also said that the Supreme Administrative Court’s decision may result from the uneasiness among the people, some of whom are displeased with and misunderstand the government.

No, you doofus. It didn't result from "uneasiness among the people," it came from the highest court in the land's problem with

conflicts of interest, incomplete public hearings and missteps in the preparatory stages of the listing.

Did he even READ the results before opening his piehole???

Source: Thai National News Bureau Public Relations Department - 24 March 2006

[asd]

By Kenneth Crawford

Members of the Confederation of Consumer Organizations of Thailand, led by Rosana Tositrakul, center foreground in black top, celebrate after the court ruling.

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In a serious blow to caretaker Prime Minister Thaksin Shinawatra's long-term political platform, the Supreme Administrative Court rescinded two royal decrees in EGAT's privatization plan yesterday, ending the state enterprise's push to issue more than 34-billion-baht's worth of shares on the Stock Exchange of Thailand (SET)

Judge Charan Hattakam said the two decrees- one outlining the authoritative rights and privileges of EGAT, and the other setting the privatization time frame - were "illegitimate."

He cited past privileges to expropriate land on the grounds of national interest and EGAT's unfair competitive advantages as reasons for the ruling.

The court is the only judicial body with the authority to overturn a royal decree, said a constitutional lawyer yesterday. The verdict cannot be appealed.

Surapong Suebwonglee, caretaker spokesman for the PM's office, yesterday said the government respected the court's ruling.

"It is the duty of the new government after the [April 2] election to figure out the next move. The court ruling must be considered,"said Surapong, who insisted the policy to privatize state enterprises should be continued in order to enhance both the economy and the performance of the stock market.

The case was brought last November by the 11 civic groups that make up the Confederation of Consumer Organizations of Thailand (CCOT) and named five defendants, including Thaksin. The court case successfully postponed EGAT's IPO on the day the company was scheduled to begin book building for the 1.245 billion shares.

EGAT executives yesterday met with Energy Ministry officials to discuss how the company will move forward with electricity capacity expansion projects across the Southeast Asian region. Earlier this week, EGAT Governor Kraisri Karnasuta said if the court ruled in favor of CCOT, the company would consider debt instruments, like bonds or commercial bank loans, to help fund the projects.

The meeting between the executives and officials was also used to discuss the repurchase of shares sold to employees before the attempted IPO. In a ploy to stem privatization objections, the state enterprise sold shares to workers at 10 baht each, below the stock's expected price of 25 baht.

The court's decision was a huge blow for Thaksin and the ruling Thai Rak Thai party, which has been vigorously promoting the privatization of state enterprises since it came to power five years ago.

EGAT was due to be the first in a series of state enterprises to go up for sale; others include telecommunication firms TOT and CAT Telecom, both of which have run into their own regulatory and legal battles.

CCOT and anti-Thaksin protesters were quick to respond yesterday.

"Today's ruling is considered yet another victory for PAD," which has strived to end Thaksin's political career for the past two months, said a leader of thePeople's Alliance for Democracy (PAD), Maj-Gen Chamlong Srimuang, who orchestrated the postponement of the Thai Beverage listing last year.

Kanin Boonsuwan, a lawyer who helped draft both the 1997 Constitution and the complaint brought by CCOT in November, told ThaiDay it was an unprecedented case in Thailand's legal history, and given PTT's presence on the SET in the past two years, was a bit of a surprise.

"It's time to take back our national assets," said Kanin, indicating CCOT was likely to move forward with plans to bring state enterprises like EGAT and PTT under full government control.

"To go ahead with privatization, they need to amend the law first by going through the National Assembly. But now there is no Parliament,"he said.

While the verdict did not come as a big shock to stock market investors, it did bring huge disappointment. The SET fell more than two points immediately after the court delivered its verdict, but rebounded half an hour later as the market fully absorbed the news.

"There was no real surprise on the market, but there was a lot of disappointment, especially among foreign investors. People were predicting this for weeks, and I think a lot of stocks already reflected a negative outcome [for EGAT]," Kitti Nathisuwan, head of equity research at TMB Macquarie Securities, said yesterday.

"As for a timeframe to restructure and find capital, I don't really know, but it will have to be soon because EGAT needs the money now for its expansion."

Public concerns that EGAT's limited capacity would lead to brown outs in the second quarter forced Kraisi to make public statements last Sunday, affirming there would be no power shortages. EGAT's long term investments are partly to address ongoing economic growth that has outpaced capacity expansion. The money raised through the IPO would have gone toward these investments.

Thanomsak Saharatchai, an analyst at Capital Nomura Securities, yesterday said: "My second concern is if EGAT has to look at [borrowing from] banks, then it will result in higher [operating] costs.

This cost will likely be passed on to consumers through their bills." -Additional reporting by Daniel Ten Kate

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The Supreme Administrative Court rescinded two royal decrees in EGAT's privatization plan in Thai version

http://www.admincourt.go.th/49/s49-0005-js01.pdf

http://www.admincourt.go.th/49/s49-0005-rs01.pdf

Edited March 24, 2006 by asd

[Thaising]

This is to show the present corrupt administration that they can't just twist laws to suit their pocket.

[Jai Dee]

EGAT board agrees on buying back 510.3 million stocks from shareholders

The board of the Electricity Generating Authorithy of Thailand has reached a consensus in re-purchasing back 510.3 million stocks of the company within the end of March, a total buy order of 6.7 billion baht.

Mr. Norkhun Sithipong (ณอคุณ สิทธิพงศ์), deputy minister of energy, in his role as acting chairman of the board of EGAT, revealed after a special meeting that EGAT has decided to cancel its decision to go public, as buying back 510.3 million stocks back from its employees. The order will cost 4.926 billion baht, in addition to the 1.772 billion baht in taxes already paid by EGAT to the revenue department.

EGAT will continue to conduct normal operations, but further meetings will take place at the ministry of energy to determine its fate. In addition, Mr. Kraisee Karnasuta (ไกรสีห์ กรรณสูต), managing-director of the EGAT board stated that next year EGAT will have to find alternate sources of funding for its operations.

Source: Thai National News Bureau Public Relations Department - 25 March 2006

[Bryan in Isaan]

CCOT and anti-Thaksin protesters were quick to respond yesterday.

"Today's ruling is considered yet another victory for PAD," ...

Did the PAD do this? I thought it was the Supreme Administrative Court.

...and this just in - I think we have the answer folks...

by Sriacha John:

.... how benevolent, condescending, and "big" of Mr. Big to "accept" the Supreme Court's decision. What other choice does he have? Appeal it to the Penultimate Court? The Supreme Court IS the final word. What a f*cktwat he is.

by Thaising

This is to show the present corrupt administration that they can't just twist laws to suit their pocket.

Precisely. My point is not to mock the previous posters, but to emphasize the fact that there are checks and balances. Although the PM is powerful and influential, he is not a dictator. There is a system in place that works. The PAD's camp out in Bangkok is not the only hope for Thailand.

Edited March 25, 2006 by Bryan in Isaan

[jdinasia]

555 ... nah ... it could be argued that before now he was pretty much a Parlaimentary dictator.

in the last couple of weeks things have started swinging the other way ... but right now he pretty much has the only Gov't (exec branch) voice that will be heard ... and the judicial seems to be getting a bit less afraid.

I think the tide started turning on the King's birthday .... since then it's been all down-hill for Thaksin politically ....

[Jai Dee]

Mr. Sirichai is preparing to hand a petition asking for a responsibility from EGAT Board and Mr. Viset

The Secretary-General of the State Enterprise Labour Relations Confederation, Mr. Sirichai Mai-ngam (ศิริชัย ไม้งาม), is preparing to hand a letter asking for a responsibility from the Board of Electricity Generating Authority of Thailand (EGAT) and Energy Minister Viset Choopiban (วิเศษ จูภิบาล) after their EGAT privatization had met a failure.

Mr. Sirichai said that both the EGAT Board and Mr. Viset have caused damage to EGAT, while he has insisted that he will continue his role of opposing against the privatization of EGAT and its affiliates. Besides, he has urged EGAT administrative sector to refund money to EGAT officers, who have bought EGAT shares. He will send the claimed letter to the Managing Director of the EGAT board, Mr. Kraisee Karnasuta (ไกรสีห์ กรรณสูต), again.

He said that he is cooperating with other State Enterprise Labour Union to go up against the privatization of other state-owned companies including PTT Public Company Limited. He said that his team is preparing to hand a petition to the Administrative Court as the government has stopped the running of the Express Transportation Organization of Thailand.

Source: Thai National News Bureau Public Relations Department - 27 March 2006

[Siripon]

CCOT and anti-Thaksin protesters were quick to respond yesterday.

"Today's ruling is considered yet another victory for PAD," ...

Did the PAD do this? I thought it was the Supreme Administrative Court.

...and this just in - I think we have the answer folks...

by Sriacha John:

.... how benevolent, condescending, and "big" of Mr. Big to "accept" the Supreme Court's decision. What other choice does he have? Appeal it to the Penultimate Court? The Supreme Court IS the final word. What a f*cktwat he is.

Correct me if I'm wrong on this but I think The Supreme Administration Court is one of the very few, or even the only, independent organisation that has no MPs, (or Senators?), on the committee for selection of members. Herein lies its independence and a lesson for reform of the constitution.

by Thaising

This is to show the present corrupt administration that they can't just twist laws to suit their pocket.

Precisely. My point is not to mock the previous posters, but to emphasize the fact that there are checks and balances. Although the PM is powerful and influential, he is not a dictator. There is a system in place that works. The PAD's camp out in Bangkok is not the only hope for Thailand.

[Jai Dee]

The Cabinet sends matters related to EGAT to the Council of State, asking for suggestions on the case.

The Cabinet has decided to send all related legal matters on privatization of Electricity Generating Authority of Thailand (EGAT) to the Office of Council of State to receive recommendations, after the Foundation for Consumers file lawsuits against the Prime Minister and the cabinet.

Government Spokesperson Surapong Suebwonglee (สุรพงษ์ สืบวงศ์ลี) said that yesterday, the Energy Ministry submitted reports to the cabinet on the Supreme Administrative Court’s cancellation of the decrees on privatization of EGAT. He said that the Prime Minister, the Prime Minister’s Office, the Energy Minister, and the cabinet are facing lawsuits filed by the Foundation for Consumers. He added that the Finance Ministry and the EGAT board has discussed issues in related legal frameworks and reported to the cabinet meeting.

The cabinet meeting, therefore, has decided to send all maters to the Office of Council of State, asking for recommendations on legal issues related to the case.

Source: Thai National News Bureau Public Relations Department - 29 March 2006

[mouse]

However, he said that the EGAT shares which have been distributed to EGAT employees will be bought back, adding that EGAT will consult with the revenue department about the matter again. Mr. Wiset added that EGAT will be told to find a new source of fund for the construction of new power plants, saying that it may ask the Finance Ministry to act as guarantor

Will the shares be bought back at the original purchase price, or will they have appreciated? Now think about this very carefully!!. Someone having planned the whole affair with an expected potential reversal by the courts, could have the potential for quite a little profit from the whole affair. Hmmmm!

Let's see

The order will cost 4.926 billion baht, in addition to the 1.772 billion baht in taxes already paid by EGAT to the revenue department.

Does someone know how many shares were sold and what the figures were?

[Jai Dee]

Mr. Thaksin asks EGAT officials to talk more with the press

The Prime Minister has asked ministers and officials under public scrutiny to address the issues through the press.

Dr. Surapong Suebwonglee (์สุรพงษ์ สืบวงศ์ลี), spokesman to the Prime Minister's office, stated that the Prime Minister has asked ministers and officials involved with the Electricity Generating Authority of Thailand's privatization to address the public over allegations that the deal was less than transparent. Mr. Thaksin has assigned Mr. Suranand Vejjajiva (สุรนันทน์ เวชชาชีวะ), Minister to the Prime Minister's Office, to provide press releases of these government officials to the public through the proper media channels.

Dr. Surapong added that the recent election, which has been of great interest to the international arena, will be addressed by Mr. Thaksin and his cabinet shortly.

Source: Thai National News Bureau Public Relations Department - 05 April 2006

[jdinasia]

Nice bit of Irony there