Democrats call for findings of Shin inquiry to be released

[limbo]

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.

 

Petchanet Pratruangkrai

 

 

The Nation 03/09/06