AEC ready to rule today on ex-pm thaksin's role

THE NATION

The Assets Examination Committee will today rule on indicting former prime minister Thaksin Shinawatra over alleged irregularities involving the Bt1-billion additional soft loan extended to Burma.

An investigative panel headed by Sak Korsaengruang would recommend Thaksin be charged with violating Article 152 and 157 of the Criminal Code by seeking to promote the vested interest of the Shinawatra family.


The AEC panel alleged that Thaksin had instructed Export-Import Bank of Thailand (Exim Bank) to extended the soft loan to Burma to enable them to buy products of Shin Satellite.


A source said the investigative panel dismissed Thaksin's defence testimony as groundless and recommended the AEC forward the case to the Attorney-General to indict Thaksin at the Supreme Court's Political Division for Political Office Holders.


The panel found Thaksin, during an "unofficial" negotiation, promised Burmese leaders to extend more soft loans. When the Burmese sought additional funds, citing the unofficial negotiation, Thaksin instructed then foreign minister Surakiart Sathirathai to respond in a letter that Thailand would increase the soft loan from Bt3 billion to Bt4 billion for Burma's telecommunication system and reduce the interest rate without Cabinet approval, the source said.


The AEC had solid testimony from Surakiart that Thaksin had verbally instructed him twice to extend loans to Burma in two instalments, Bt3 billion and Bt1 billion, the source said.


"The AEC believes the move damaged the Exim Bank. Thaksin went to Burma with Shin Sat staff to negotiate a business transaction for Shin Sat and Shin Corp both of which belonged to Thaksin's family and Thaksin himself also benefited from the companies,'' the source added.


Thaksin's testimony denied the allegations. He said he had followed the national policies declared before the House to support the economic development of neighbouring countries. Thaksin also argued that the soft loan extension was a commitment Thailand had made to Burma in accordance with the Bagan Declaration.


Thaksin said in his testimony that the AEC had made unfair allegations against him related to the loan. He reasoned that Thailand would hugely benefit from Burmese natural resources worth trillions of baht.

Thaksin also rejected the allegation that the soft loan was extended to Burma to buy Shin Sat equipment.