Thaksin's judgement day

Wed, Jan 13, 2010
The Nation/Asia News Network

Former information and communications-technology (ICT) minister Sitthichai Pookaiyaudom and Thailand Development Research Institute (TDRI) vice president Somkiat Tangkitvanich told the court the excise tax policy on telecom services implemented by Thaksin as prime minister prevented fair competition and benefited his family's telecom business.

He said state-owned TOT and CAT Telecom also suffered from the policy, under which telecom concession fees paid to the state enterprises was converted into excise tax. This meant both agencies became financially weak and could not serve the public efficiently.

Sitthichai, who reversed the policy after taking up the ICT portfolio in Surayud Chulanont's government, said the excise tax measure effectively discouraged new competitors, especially foreign giants, from entering the Thai telecom market. The excise tax ceiling was as high as 50 per cent, which could be adjusted by the Cabinet.

"Foreign investors could not come here, because the measure was meticulously designed to prevent competition," he said.

In this landmark case, prosecutors have accused Thaksin and his ex-wife, Pojaman na Pombejra, of hiding their massive wealth illegally during the ex-PM's time in public office. In addition, they alleged Thaksin had abused his power for the benefit of Shin Corp, the parent company of Advanced Info Service, Shin Satellite (ShinSat) and other units, before selling the conglomerate off to Singapore's Temasek Holding in 2006.

Regarding the iPSTAR satellite owned by ShinSat, Sitthichai said a panel set up by his ministry had found it was not a "reserve" satellite as stipulated in the concession contract between the state and ShinSat.

However, iPSTAR could have been regarded as the main satellite, so it would have required a new concession before it could be launched into orbit.

The other prosecution witness, the TDRI's Somkiat, told the court that excise tax collection on telecom services was inconsistent with the master plan on telecom-sector development. He believes the policy helped existing private telecom firms boost their profits, because new competition was curbed.

Meanwhile, a source close to Thaksin said a team of lawyers was preparing a closing statement in which the fugitive ex-premier and his family would defend the integrity of the source of their Bt76-billion assets.

The lawyers will insist that prior to assuming the premiership on February 9, 2001, the assets had been transferred to Thaksin's children and other relatives.

The source said the former premier was worried about the outcome of this case, because there was political pressure during the investigation by the Assets Examination Committee installed after the September 19, 2006 coup.

Given that the court has set February 26 for delivering a verdict, Pojaman and other members of Shinawatra family are thinking about whether they should attend the session in person.

-The Nation/Asia News Network