Anything & Everything About Thailand

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136 words
31 January 2006
11:20
Dow Jones International News
English

BANGKOK (Dow Jones)--Thai Airways International PCL (THAI.TH) will change its fuel surcharge structure for international flights to make the ticket prices more competitive with those of other airlines, reports the Bangkok Post quoting Vasing Kittikul, the company's executive vice-president of commercial affairs.

According to the paper, the national carrier charges flat rates on fuel costs - $25 for short-haul flights and $50 for international flights. The rates will be replaced with a new variable structure depending on the route and the country of destination.

The new surcharge structure will be put in place on Apr. 1, the paper said.

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Melinda Wong
620 words
30 January 2006
Vancouver Sun
English

BANGKOK, Thailand

BANGKOK, Thailand - Bangkok is not Las Vegas but like the Sin City, sometimes business is based on being lucky. We have ways to even the odds to ensure prosperity comes our way.

Imagine my surprise when I read in the local newspaper that a Thai celebrity never makes decisions without consulting her fortune-teller, or that a CEO of a Fortune 500 company attributed his past year's success to the feng shui in his office space as predicted by his personal geomancer. Just by putting his office furniture in a certain lucky arrangement he ensured his new ventures would be fruitful. Maybe I should relocate the wastebasket in my office.

As a foreigner, I may not believe in these superstitions, but many Thai locals heed these beliefs as a necessary part of every-day life and business.

A number of my clients have had to postpone meetings until they have met with their "advisers" -- a.k.a. their fortune-tellers -- before signing any businesses contracts.

While we may laugh at the thought of late-night astrologers on TV in North America, the powers of fortune-telling and blessings are taken seriously in Bangkok.

At Khaosan, there is a famous fortune-teller whose clients as far away as Singapore fly in just for a consultation. I suppose if he is someone who can save you millions on your next deal, the price of a prediction is cheap by comparison.

From the street hawkers to large companies, the idea of luck crosses all boundaries.

On the way home, my taxi driver buys a jasmine wreath from street children -- who weave in and out of arrested traffic to sell them -- to hang on his rearview mirror and ensure the safety of the car's occupants. Figurines of Buddha litter the dashboard for blessing, and there also sits a "money cat" mini statue whose paws are waving to the winds of fortunes to bring in more fares.

Passing the night vendors at Patpong, I see them brushing their merchandise with their first customer's money to guarantee a prosperous evening of sales. This is the best time to buy and bargain if you want to get great deals as the first customer.

Recently, the media company I work for had "make merit" day, where monks arrived in the morning to pray and chant with the whole office. The blessing, which was bestowed on the company for this day, translates into good business if it motivates the staff.

After the ceremony, Buddhist lucky charms were distributed, a blessed "lucky string" was hung in the office to ward of evil spirits, and protection symbols were drawn on the doors of the offices, and elevators. These protection symbols are usually applied to new offices, cars, and even airplanes.

As I walked to work the next day, I observed the Thais praying at corner shrines. These beautiful shrines are at almost every corner, amid tall modern skyscrapers in downtown Bangkok. Offerings on the shrines tell me that the devotees are numerous at this one location around my office tower.

Anything can be offered: a sip of soda, a candy bar, or a bowl of rice.

It is this juxtaposition of modernity with the traditional that makes life in Bangkok fascinating.

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176 words
30 January 2006
fnWeb Daily News
English
fnWEB - Bangkok - January 30, 2006 -

Sales of gold during the Chinese New Year this year have dropped drastically compared to last year's holiday sales, apparently due to its soaring price, according to the president of the Gold Traders Association.

Jitti Tangsitpakdi said high gold prices had depressed sales during the popular Chinese holiday this year as people's purchasing power declined. He predicted that sales of gold, which is a favorite present during the annual celebrations, would tumble between 20 to 30 per cent this year.

Owners of gold shops in the Yavaraj area, Bangkok's Chinatown, saw their businesses going on quite actively Saturday afternoon and the festival traffic was heavy as people living in the area scheduled many exciting activities to celebrate Chinese New Year.

Yesterday, gold bar was being purchased at Bt10,200 (US$255) and the sales price was Bt10,300 per baht weight (15.2 grammes). Ornamental gold was bought at Bt10,081.40 and sold at Bt10,600 per baht weight.

[KatoeyLover69]

Report from The Bangkok Post dated Tuesday 31 January 2006 :-

Year of the Dog business forecast for Thailand

Kasikorn Bank released its findings titled, “50 Businesses in the Year of the Dog: A Challenging Year for Business".

The local bank’s research centre looked at the direction of 50 local business types based on three groupings: those with promising growth, those with stable direction and those that should be monitored carefully.

Four key criteria used for the predictions included production, marketing (sales), development and obstacles facing business.

Businesses with promising growth include: rubber, auto and auto parts, animal feed, herbs and spices, dairy products, petrochemical, cement, private hospitals, construction, luxury spa, canned and processed seafood, soy milk, fruit/vegetable juice, Internet.

Businesses with stable platforms include: shrimp and related products, tapioca, rice, jewellery, paper pulp, instant noodle, upper-end hotel, computer and electronic parts, garment, kitchenware’s, home decoration, home building, retail trade, steel and related products, mobile phones, plastic products, condominiums, housing estates, advertising, petrol stations, rubber products, furniture, ceramics, golf courses, alcohol and electric appliances.

Businesses that should be monitored carefully include: sugar and sugarcane, leather products, processed chicken and toys.

[KatoeyLover69]

Report from The Bangkok Post dated Tuesday 31 January 2006 :-

PM's kids ordered to clarify Shin deal : Must explain relations with Ample Rich

By Bangkok Post Reporters

Securities regulators yesterday ordered Panthongthae and Pinthongtha Shinawatra to clarify their share deals made with Ample Rich Investments, a suspected Shinawatra family offshore firm at the centre of a public storm over last week's sale of Shin Corp to Singapore's Temasek Holdings.

The Securities and Exchange Commission (SEC) said Mr Panthongthae and Ms Pinthongtha reported on Jan 23 that they had purchased 164.6 million Shin Corp shares each from Ample Rich on Jan 20.

But regulators said they found no record the transactions had been made through the Stock Exchange of Thailand (SET).

Mr Panthongthae and Ms Pinthongtha yesterday told the SEC that the Shin shares had been purchased from Ample Rich outside of the market.

The additional disclosures also showed that both Mr Panthongthae and Ms Pinthongtha had held Shin shares through Ample Rich before the Jan 20 sale.

The SEC afterwards directed the two Shinawatra siblings to clarify within seven days their relationship with Ample Rich, the date of the transactions and previous share trades.

In 1999, Ample Rich, a holding company established in the British Virgin Islands and headquartered in Singapore, purchased 11.87% of Shin Corp for 10 baht a share from Mr Thaksin. The transaction later attracted scrutiny from the National Counter Corruption Commission as part of asset transfers made by Mr Thaksin in the run-up to the 2000 general election.

Ample Rich is suspected of being set up as an offshore holding company to minimise tax liabilities for the Shinawatra family, the founders of Shin Corp, mobile operator Advanced Info Service (AIS) and satellite operator Shin Satellite.

On Jan 23, Shin Corp announced that the Shinawatra and Damapong families had sold their combined 49.595% stake in Shin to Temasek Holdings for 73.3 billion baht in a series of SET transactions. Ms Pinthongtha sold 604.6 million shares, or 20.15% of Shin, while Mr Panthongthae sold 458.55 million shares, or 15.29%.

SEC senior assistant secretary-general Chalee Chantanayingyong said Ms Pinthongtha and Mr Panthongthae would have to clarify how and when they purchased the Shin shares from Ample Rich.

He said authorities also wanted to see whether the transactions broke tender offer and disclosure rules regarding shareholding changes in listed companies.

Under the SEC Act, shareholding changes of more than 5% must be reported to authorities, with a tender offer required once shareholdings reach more than 25%.

According to the SEC, Mr Panthongthae had held 9.8% of Shin before purchasing another 5.49% from Ample Rich to raise his stake to 15.29% at the time of the Temasek deal. Ms Pinthongtha's Shin holdings also increased by 5.49% to 20.15%, with both share purchases from Ample Rich made at one baht per share.

Failure to abide by reporting regulations is punishable by prison sentences up to two years and fines up to 500,000 baht.

The Shin deal, the largest corporate buyout in Thai history, has spurred public calls for an overhaul of the tax laws and widespread criticism over whether securities regulators allowed the company to violate disclosure regulations due to its political connections.

Authorities have also launched an investigation into whether connected persons benefitted from insider information to profit from news about the Temasek deal, which was widely rumoured in the market in late 2005.

Shares of Shin Corp outperformed the overall stock market in the weeks leading up to the formal deal announcement, as investors speculated about a new foreign partner, despite steady denials by both Mr Thaksin and Shin Corp executives.

Shin director Siripen Sitasuwan, in a statement to the SET yesterday, insisted that the company complied with disclosure regulations and had no prior knowledge of the transaction.

Shin had inquired with the major shareholders about reports regarding a share sale to Temasek, but "there was no confirmation from the major shareholders".

Mr Thaksin yesterday said he would clarify the Shin Corp sale "later".

"I'll talk when it's time. I promise nothing will be withheld. Be patient. If you inquire about parts of [the deal], there will only be problems," he said.

Executives of the Shin Group also defended their own personal share transactions in the weeks before the deal.

Senior executives of AIS, the Shin Corp flagship, had reported significant share sales during the past two months, raising questions about possible insider trading.

The Temasek deal included a voluntary tender offer for AIS at just 72.31 baht per share, or 30% lower than last Monday's market price.

AIS executives who sold shares included Yingluck Shinawatra, Mr Thaksin's youngest sister and the AIS president; Somprasong Boonyachai, the AIS chairman, Suvimon Kaewkoon, the AIS chief marketing officer, and Vikrom Sripratak, the AIS chief technical officer.

Mr Somprasong, who sold some 20,000 AIS shares over the past two months, denied any use of insider information.

He said the shares had been granted through an employee stock option programme and had been sold after a one-year silent period had expired.

Finance Minister Thanong Bidaya, meanwhile, said yesterday he had directed the SEC and the Revenue Department to clarify any questions over the share sale.

He declined to say whether the tax laws should be amended to close the long-standing tax exemption on capital gains from SET transactions.

"If there is a loophole used for tax evasion, then the Revenue Department should close it. There is no law in the world that is perfect," Mr Thanong said.

[KatoeyLover69]

Report from The Bangkok Post dated Tuesday 31 January 2006 :-

PM's children to clarify share trading

Government Spokesman Surapong Suebwonglee on Tuesday revealed that children of Prime Minister Thaksin Shinawatra would make a clarification on a trading of Shin Corporation Public Company Limited’s shares with Ample Rich Investment Limited with the Securities Exchange and Commission (SEC) within this week.

“Should they have to be fined on the matter, it is considered usual. No one, even family members of the premier, is above the law,” he said.

The revelation came after SEC asked Pantongtae and Pinthongta, son and daughter of the premier to clarify the trading of Shin Corp’s shares with Ample Rich located in British Virgin Island outside the market.

Dr. Surapong said it is a normal practice that share traders must clarify to SEC when there are doubts about trading so that the regulator could examine whether it proceeded in accordance with rules and regulations.

“As far as I know, persons concerned will definitely clarify within this week. The matter is not related with the premier or the government because it is not done under the government’s jurisdiction. It is a duty of the share traders to explain and SEC to see whether they comply with the rules,” he said.

Asked whether the news would affect the government’s status because it is linked to the premier and his family, he said the reports stemmed from share trading on SET with which people might not be familiar.

To give people proper understanding, he thought, persons, who had experienced in similar deals, and the regulator must make thorough explanation on the matter.

"Should the clarification be clear and in line with the rules, it won’t affect the government. But if not, it will have more or less impact on the government. It is a duty of the premier’s children to clarify to SEC. If they do it in accordance with the rules, they must confirm it. But if not, they may be fined," said the spokesman.

“Everyone is under the same law no matter whether he or she is a member of the premier’s family. If fined, they, even family members of the premier cannot avoid it. No one is above the law,” he added.

[KatoeyLover69]

Report from The Bangkok Post dated Tuesday 31 January 2006 :-

PM gets a warning from Chamlong

[COLOR="Blue"]Chamlong Srimuang [/COLOR]- the controvertial Thai politician who toppled an unpopular military government in 1992 - on Tuesday told Prime Minister Thaksin Shinawatra to beware of the power of street politics in Thailand.

"I have told the prime minister not to be too confident just because he has 375 seats in parliament, because in the past government changes (in Thailand) haven't come from the parliament but from the streets," said Chamlong, recalling the mass demonstrations he led on Rajdamnoen Avenue in Bangkok that toppled General Suchinda Kraprayoon from the premiership in May, 1992.

"This is still recent history," said Chamlong, a maverick former Bangkok governor who, ironically, helped Thaksin on his road to the premiership.

The former leader of the Phalang Dharma (Dharma Power) Party, which launched Thaksin's political career, has fallen out with the billionaire prime minister.

Chamlong on Tuesday joined a growing chorus of Thais expressing disappointment with the last week's 73.3 billion baht (1.9 billion dollar) sale by Thaksin's family of its 49 per cent stake in the family empire - Shin Corp - to Singapore's public investment arm Temasek.

The massive sale has drawn criticism because it was carried out in such a way that Thaksin's family avoided paying any taxes on the spectacular 1.9 billion dollar transaction.

"Politicians are supposed to work for the people, not just for their own families," said Chamlong, before reading out a public letter to the prime minister at Rajdamnoen Avenue.

Chamlong faulted Thaksin's family for not selling Shin Corp to Thai investors and also called on the prime minister to donate 26 billion baht (666 million dollars) to charity to compensate for the lost taxes on the Shin Corp stock sale.

Thaksin, a billionaire businessman who made his fortune off lucrative state concessions in Thailand's telecommunications sector, has promised to explain all details behind his family's share sale at a press conference on Wednesday.

The Security Exchange Commission (SEC) has also requested that Thaksin's son and daughter, Pantongtae and Pinthongta, clarify details behind the sale, such as the ownership of Ample Rich Investment Company, an offshore vehicle that sold them a 10 per cent stake in Shin Corp three days prior to their resale to Temasek.

[KatoeyLover69]

Report from The Nation dated Tuesday 31 January 2006 :-

HARD TALK: Shin sale: the straw that broke the camel’s back?

There could not have been a bigger contrast. Two weeks ago, Prime Minister Thaksin Shinawatra was in At Samat district of Roi Et trying to offer villagers lessons on how to deal with poverty. A week later, he was back in Bangkok relishing the fortune his family reaped from the biggest business deal in Thai history.

The two events were anything but a coincidence. Thaksin knew long before anybody else that the Shin Corp deal with Temasak Holdings of Singapore was on the horizon, and he was shrewd enough to foresee the publicity it would generate.

It’s notable that the sale of Shin was sandwiched between his much-publicised anti-poverty drive in At Samat and his hastily called Cabinet meeting on Sunday to discuss strategies for a nationwide campaign to reach out to people on the lowest rungs of the social ladder.

And in between was his pledge to donate a portion of the billions of baht of revenue from the sale of the country’s biggest telecommunications company to charity, including to foundations conducting poverty research.

So what we have here is a political leader holding the country’s largest cash reserve but wanting to be seen as a champion of the poor.

But in the realm of political reality, having the best of both worlds is, at best, wishful thinking. That the Shinawatra family is one of the richest in Thailand is indisputable. But using the plight of the poor as a smokescreen to cushion criticism of impropriety and conflict of interest arising from the mega-billion-baht stock sale just doesn’t work.

The overly self-confident Thaksin certainly underestimated the backlash from the Shin deal. His attempt to distance himself from it by claiming it was done at his children’s initiative held little water and bordered on being a lie.

The circumstances surrounding the sale also put Thaksin directly on the spot. And instead of clarifying matters, he made it worse for himself by hitting back at his critics, calling them “half-witted” and “envious”.

Now we have a prime minister who pretends to know nothing about a business deal that has far-reaching ramifications for the future of Thailand’s telecommunications sector and beyond. Thaksin will definitely go down in history as the first Thai political leader who offered what was considered a national asset to foreigners on a golden platter.

Worse still, Thaksin seems to be at a loss as to how to explain the role of Ample Rich, an investment firm registered in the British Virgin Islands and headquartered in Singapore, in the deal. Thaksin might have forgotten that shortly before he became prime minister, Ample Rich, cited as his investment arm, took transfer of a considerable part of his shares in Shin Corp.

One of the greatest riddles of all is that the same Ample Rich sold 164.6 million Shin shares to each of Thaksin’s two children at Bt1 apiece only a few days before they were resold to Temasek for Bt49.25 apiece.

Adding insult to injury, Thaksin and family reacted nonchalantly to allegations that they exploited legal loopholes to avoid paying tax on the Bt73.3-billion deal. They were not just “playing by the rules” as Thaksin claimed, but rather the rules were bent to let them escape a heavy tax burden.

The tax-evasion charge flies in the face of the Revenue Department’s current expensive campaign to encourage citizens to pay their taxes.

If Thaksin’s reason for offloading the Shin shares was to reduce political pressure over the allegations of conflict of interest that have hounded him for the past five years, the deal with Temasek has obviously backfired.

An Abac opinion poll made it rather clear that the majority of the public believe the Shin deal has raised questions about the prime minister’s integrity. Most respondents gave it a thumbs-down and said it did not help Thaksin’s image.

Academics and the media are of one voice in criticising the deal, which they rightly point out is the most tangible example thus far of a conflict of interest. For the first time, a conflict of interest has manifested itself in figures – the money the first family and its associates made in selling the stocks and the amount of tax they dodged.

Thaksin may continue with his charm offensive to appease the rural poor and pretend that the fall-out from the controversial deal will fade away like many of his previous political troubles.

But this time, the magnitude of the disenchantment is unprecedented. Not only has the deal exposed Thaksin’s hidden agenda in defending his family’s business interests, but it has also driven home how the family has been profiting from conflicts of interest in the most concrete terms.

When the country’s top political leader is caught using his political office to help peddle his family business and endorsing what is believed to be the single-biggest tax evasion in history, his political trustworthiness has come to an end.

And Thaksin will soon learn that another dozen “At Samat publicity stunts” cannot repair the damage done to his leadership.

Thepchai Yong

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414 words
1 February 2006
The Nation (Thailand)
English

Prime Minister Thaksin Shinawatra said his family's decision to sell their stake in Shin Corp Plc was an act of patriotic self-sacrifice. They hope their deal with a consortium led by Temasek Holdings will put an end to the constant criticism about Thaksin's conflicts of interest and allow him to concentrate on running the country.

The deal was supposed to end the complaints, but instead it has only sparked more criticism, even stronger and louder than before.

The deal has drawn attention from people from every corner of the country. First, the public were amazed at the value of the transaction: Bt73.3 billion. This is the biggest deal in Thai history. It also represents 55 per cent of Temasek's foreign portfolio, which reaches to many countries outside Singapore.

Then they were caught by surprise that in selling the shares, the Shinawatra and Damapong families were not subject to taxation. Later, they learnt of secret transactions of shares on January 20, which could link the persons involved - Thaksin's children Pinthongta and Panthongtae - in a possible insider-trading case.

Newspapers dug up information about all the entities and persons involved in the deal, particularly Ample Rich Investment Ltd - a company registered in the tax-haven of the British Virgin Islands but with a correspondent office in Singapore.

Criticism has intensified as the days have passed. And adding weight to this sentiment is the emergence of prominent public organisations accusing Thaksin of shady and immoral practices.

First, it was newspapers. Then members of the Democrat Party joined the chorus. Then, on Friday, it was the Law Society of Thailand, whose voice carries moral weight since all lawyers belong to this organisation. And who should know the legal issues - whether this transaction should be taxable or not - better than lawyers?

Then, on Sunday, a consumer-protection group joined in the battle against the prime minister.

Never before have Thais representing so many different interest groups united for a single purpose. This episode reminded many of Thaksin's quote that it's time for Thais to exercise both sides of their brains.

Now, everybody is using both sides of their brains, not to understand the transaction the way the prime minister wants them to, but to ferret out what the Shinawatra and Damapong families would really gain from this deal. That is, besides the mind-boggling sum of Bt73.3 billion.

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398 words
1 February 2006
The Nation (Thailand)
English

After a report broke that a major owner of Bangkok Bank, the country's largest bank, might sell shares to an offshore outfit, the bank's senior executive vice president came out yesterday to deny the story.

Deja Tulananda, said that the bank doesn't need a foreign partner because it already has a strong financial position. His comment was in reaction to a local newspaper report on Monday that the Sophonpanich family, the major shareholder of in the bank, is in talks with an Arab bank about selling the bank's shares.

"Our capital-adequacy ratio is very strong. The bank does not need to increase capital or to look for a foreign partner. We will maintain Bangkok Bank as a Thai bank," he said.

He said the bank's capital base is more than sufficient to cover the requirements of the international banking standard (Basel II), which will be implemented in 2008.

The bank must also have enough funds to cope with more competition in the banking sector due to an industry-wide financial liberalisation.

Deja said he had not heard about any sale of shares to an Arab bank. That said, Bangkok Bank conducts general banking with Arab banks in addition to other overseas banks.

The bank has many foreign shareholders, but they only hold small stakes.

This is reflected in the bank's board of directors, on which no foreigners sit, he added.

He said that if foreign banks wanted to buy shares in Thai banks they could do so in the stock market.

However, if they want to buy large amounts, which could be interpreted as a hostile takeover, it would be difficult because of regulations and a requirement that they would need the Bank of Thailand's blessing.

If there is a merger between a local bank and large foreign bank, Bangkok Bank could loose its number-one ranking in terms of asset value.

Another recent report had it that GE Money Retail Bank and Bank of Ayudhya, the country's sixth biggest bank, would merge.

In addition, Deja predicted that lending and deposit interest rates would increase by 200

basis points this year in line with global trends and that the US Federal Reserve would raise interest rates by 25 basis points to 4.5 per cent at its January 31 meeting.

Somruedi Banchongduang

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494 words
1 February 2006
English

BANGKOK POST:

- Norahuch Ployyai, an executive vice-president at Thai Airways International (THAI), is tipped as the front-runner among the four candidates shortlisted to seek the president's post at the national carrier.

- Thai Beverage Plc is unlikely to be able to list on the Stock Exchange of Thailand if it goes forward with a Singapore listing, said Democrat MP Korn Chatikavanij.

- Economic growth for 2005 is estimated at 4.5 per cent, well down from 6.2 per cent the previous year, according to the Bank of Thailand.

- Yingluck Shinawatra, the prime minister's youngest sister, yesterday brushed aside mounting criticism of possible insider trading of shares in Advanced Info Service.

- BT Asset Management, a subsidiary of BankThai, aims to raise assets under its management to 47 billion baht by the end of this year from 30 billion baht now.

- Japanese businesses in Thailand expect to increase the amount of capital investment in the country by 15.7 per cent this year, according to the Japan External Trade Organisation (Jetro).

- PTT Exploration and Production Plc has decided to split the par value of its stock to one baht from five baht, resulting in a sharp increase of its share price on the Stock Exchange of Thailand yesterday.

- After keeping a low profile for two years, Keppel Thai Properties Plc (KTP) plans to launch at least three residential projects and acquire an office building to sell to a property fund established in Singapore.

THE NATION:

- Prime Minister Thaksin Shinawatra did not ask for the Bank of Thailands permission to take money to the British Virgin Islands when he set up Ample Rich Investment Co Ltd in the tax haven, the central bank chief said yesterday.

- The Bt1 hike in public bus fares approved for next week will add 0.3 percentage points to inflation, the Bank of Thailand said yesterday.

- Siam Commercial Bank (SCB) will not help finance Temasek Holdings tender offer for the remaining outstanding shares in Shin Corp Plc and Advance Info Service Plc, bank president Jada Wattanasiritham said yesterday.

- Fried-chicken fast-food chain KFC yesterday said it would spend Bt500 million this year on new restaurant formats in its expansion upcountry, while simultaneously enlarging its Bangkok market.

- Former commerce minister Narongchai Akarasnee is on the governments short list for a new head for the Thai-US free-trade negotiations and it looks like he will be tapped before the seventh round of talks start in the US start later this month.

- Brokerage houses net profits fell significantly last year, due mainly to a sharp decline in the stock markets overall trading volume. Kim Eng Securities (Thailand) saw its net profits drop 31.43 per cent year on year, from Bt1.04 billion in 2004 to Bt715 million last year, the company reported in a filing to the Stock Exchange of Thailand (SET) yesterday.

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379 words
1 February 2006
09:35

English

TOP STORIES

- Lawyer Suvarn Valaisathien will try to dispel public concerns about the Shinawatra and Damrong families' sell-off of Shin Corp by explaining the timing of the stock transactions, the role of Ample Rich Investments, the movement of Shin Corp shares and the tax implications (THE NATION)

- Prime Minister Thaksin Shinawatra is blaming his son Panthongthae, who is likely to be fined about 20 million baht ($515,000), for the Ample Rich controversy, a government source said (BANGKOK POST)

- The Democrat Party will launch impeachment proceedings against Thaksin if he is found to be the actual owner of Ample Rich Investments, which held shares in Shin Corp (THE NATION)

- Bank of Thailand Governor Pridiyathorn Devakul suggested lawmakers amend Finance Ministry rules which waive capital gains tax on stock trades in the wake of the Shin Corp sell-off (BANGKOK POST)

- Maj-Gen Chamlong Srimuang called on Thaksin to donate 26 million baht to the country's poor in lieu of the capital gains exempted in the sale of Shin Corp shares by the Shinawatra family (BANGKOK POST)

BUSINESS

- Economic growth in 2005 is estimated at 4.5 percent, well down from 6.2 percent the previous year, according to the Bank of Thailand (BANGKOK POST).

- Thai Beverage is unlikely to be able to list on the Stock Exchange of Thailand if it goes forward with a Singapore listing, Democrat MP Korn Chatikavanij said (BANGKOK POST)

- Former Commerce Minister Narongchai Akarasnee is on the government short list for a new head of the Thai-US free-trade negotiations and it looks like he will be tapped before the 7th round of talks starts in the US later this month (THE NATION)

- Siam Commercial Bank will not help finance Temasek Holdings' tender offer for the remaining outstanding shares in Shin Corp and Advance Info Service Plc, bank president Jada Wattanasiritham said (THE NATION)

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724 words
1 February 2006
Business Times Singapore
English

(BANGKOK) Amid mounting criticism about the way Shin Corp Plc was sold to Singapore's Temasek Holdings, the Securities & Exchange Commission (SEC) of Thailand on Monday gave the children of Prime Minister Thaksin Shinawatra, Panthongtae and Pinthongta, one week to clarify the share sale and transfer issue.

The Thaksin family is under some pressure to clear the air before a planned Bangkok rally this Saturday called by the prime minister's staunchest critic, media tycoon and former supporter Sondhi Limthongkul, who has pledged to topple him.

The SEC ordered Ms Pinthongta and Mr Panthongtae to clarify within seven days their relationship with Ample Rich Investments Ltd through which they admitted to having held stocks of Shin Corp before the takeover deal.

'The SEC has found that Panthongtae and Pinthongta held stocks of Shin Corp through Ample Rich (before the takeover deal). This fact has aroused suspicion as to when the two established financial relationships with Ample Rich, and whether they had ever made proper disclosures about their holdings or their tender of (Shin stocks),' the SEC said in a statement.

Ample Rich, which until Jan 20 had held the same number of shares (accounting for 10.98 per cent in Shin Corp), is a nominal company registered in the tax haven of the British Virgin Islands.

It was set up by Mr Thaksin on April 12, 2000, but he later stated that he had divested his holding in the firm.

Acting on behalf of both Ample Rich as seller and Ms Pinthongta and Mr Panthongtae as buyers, Karnjanapha Honghern, a secretary of Mr Thaksin's wife, Pojamarn Shinawatra, informed the SEC on Jan 23 that Ample Rich had sold 164.6 million shares of Shin Corp to each of the two children at a nominal price of one baht (four Singapore cents) a share, and the deal was done through the Stock Exchange of Thailand (SET) on Jan 20.

When queried, the SET said that it did not have a record of any such deal between the two parties.

The transaction, therefore, provoked speculation as to whether Mr Thaksin's children had resorted to insider trading to buy the shares ahead of the sale or whether Ample Rich belonged to the prime minister and his family, and that he had not disclosed fully his assets upon taking up the top job, as required by the Thai Constitution.

Under the Constitution, ministers at all levels have to reveal their assets upon taking up their posts and within 90 days after leaving their positions.

Finance Minister Thanong Bidaya said yesterday that in his enquiry, he has not found any irregularity in the transaction concerning Temasek Holdings' buyout of Shin Corp. 'I have discussed the issue with the Securities & Exchange Commission, and there is nothing irregular about that transaction,' he told reporters.

To calm matters, government spokesman Surapong Suebwonglee on Monday said that the prime minister's children would make a clarification on trading of Shin Corp's shares with Ample Rich Investment Limited with the SEC within this week. 'Should they have to be fined on the matter, it is considered usual. No one, even family members of the premier, is above the law,' he said.

'As far as I know, persons concerned will definitely clarify within this week. It is a duty of the share traders to explain and SEC to see whether they comply with the rules,' he said.

'I think that all this will be solved within this week before the rally on Feb 4,' Mr Surapong said, referring to the Bangkok rally called by Mr Sondhi.

Mr Thaksin, whose family members sold the 49.60 per cent stake at 49.25 baht a share to Temasek just last week, has been under intense political pressure to reveal the details of the deal that transferred the control of Thailand's largest telecommunications conglomerate to a foreign partner.

Mr Thaksin told reporters ahead of the weekly Cabinet meeting yesterday that he would 'probably' clarify the family's US$2 billion sellout to the general public today.

This also follows a similar announcement by Suvarn Valaisathien, a spokesman for the Shinawatra/Damapong family, who said that he, too, would hold a press conference today to clarify the tax issues regarding the share sale.

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207 words
1 February 2006
Thai News Service
English

Section: General News - Chiang Mai Night Safari will open officially on February 6 during the mobile cabinet meeting in the province, preparing to show the rare white tigers received from China.

Director of the Chiang Mai Night Safari, Pisan Wasuwanich said that the mobile cabinet meeting will be held in the province on February 6-7. He said that the zoo believes it is a good opportunity to open the safari officially on the evening of February 6. He said the event will be presided by the Prime Minister.

Mr. Pisan said that the cabinet will be shown rare white tigers given by Pan Yu Night Safari in China to Chiang Mai Night Safari. The animals are considered the world's rare animals, as there are only 200 white tigers around the world. The cabinet will also ride electric cable cars to view the beautiful sceneries around the Chiang Mai Night Safari, before a dinner and performances organized by the zoo.

The mobile cabinet meeting will be held at Wareekunchorn room in Chiang Mai Night Safari. The zoo will close to the public on February 7 for one day to accommodate the cabinet meeting.

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270 words
1 February 2006
The Nation (Thailand)
English

Media mogul Sondhi Limthongkul will file a lawsuit against the prime minister, the Natural Resources and Environment Minister and others in the Criminal Court today over the disturbance created at his "Thailand Weekly" show at Lumpini Park earlier this month, his lawyer said yesterday.

Suwat Apaipak said minister Yongyuth Tiyapairat, plus the head of the National Park, Wildlife and Plant Conservation Department would be among nine people in the lawsuit.

The suit accuses the defendants, including a Regional Border Patrol Police commander, of mobilising 30 police volunteers from Chiang Rai to disturb and create chaos at the "Thailand Weekly" programme at Lumpini Park on January 20, Suwat said.

Moreover, Sondhi would also file a lawsuit in the Administrative Court today against the Public Relations Department and its executives for blocking ASTV's satellite television signal, the lawyer said.

CAT Plc and its executives at the state telecom agency would be among six co-defendants named in the suit.

He also plans to file a lawsuit over government officials' "malfeasance against Sondhi", and will ask the court for an emergency hearing - to issue temporary protection measures for the plaintiff, he said.

The government admitted last week that it blocked transmission of ASTV's signal from a show Sondhi put on in Hat Yai on Wednesday. PM's Office Minister Suranand Vejjajiva said ASTV did not have authorisation to operate as a TV station or to provide live coverage.

ASTV is a service of Thai Day Dot Com Company, a part of Sondhi's Manager Group.