by Usa Pichai
Tuesday, 02 March 2010 09:14
Chiang Mai (Mizzima) – A controversial loan between Thailand and Burma that cost the Thai government a substantial sum of money has been adjudicated as part of Thailand’s ongoing legal investigations into the actions of former Prime Minister Thaksin Shinawatra.
On Monday, Thailand’s Finance Ministry revealed it had to provide 670 million baht [20.3 million USD] over 12 years to the Export and Import Bank to cover losses resulting from a 4 billion baht [121 million USD] low interest credit line granted to Burma by Thaksin, in part to purchase equipment and services from the former Prime Minister’s Shin Satellite company, according to a report in The Nation newspaper on Monday.
The Supreme Court's Criminal Division for Political Office Holders on Friday considered several allegations that Shin Corporation, the parent company of Shin Satellite, unduly benefited from the controversial loan to Burma.
The court subsequently ordered the seizure of 46.37 billion baht [1.4 billion USD] of 76.6 billion baht [2.3 billion USD] in frozen assets, ruling that the remaining 30.2 billion baht [0.9 billion USD] would be returned to Thaksin and his family as the sum was acquired before he became prime minister in 2001.
A majority verdict determined that Thaksin had abused his power by providing 4 billion baht to Burma to buy broadband Internet to the benefit of Thaksin controlled enterprises, while simultaneously damaging the national budget and instructing the Export and Import Bank to open a credit line to Burma at a low interest rate.
The Thai cabinet initially approved a loan through Thailand’s Export and Import Bank to assist Burma’s trade, agriculture, industry and tourism development. But the Burmese government later asked for additional funds for telecom development.
The ensuing 2004 loan to Burma to facilitate the telecommunications industry was found to be in breach of the Bagan Declaration that barred Thailand from lending for telecom development in order to prevent conflicts of interest on the part of Thaksin, whose family at the time owned the country's largest telecom business.
Sak Korsaengruang, a member of the now disbanded Assets Examination Committee, said he is satisfied with the ruling.
“The verdict is clear and covers all the points, and urges all parties to respect and retain faith in the judgment,” he said.
He added that he considers the mission of the committee finished, since it had worked hard to gather evidence and file the case in clear accordance with the law.
Tuesday, March 2, 2010
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