Thailand Politics News w/o Aug 20 2008

[BahtandSold]

POLITICS
Samak vows to defend Thaksin
source: The Nation August 20, 2008

Prime Minister Samak Sundaravej told a People Power Party meeting yesterday he shared Party MPs' sympathy for former premier Thaksin Shinawatra, who was put on the police's wanted list - along with his wife Pojaman - after they skipped bail.

Samak told his colleagues he had always protected Thaksin and would never stab him in the back or try to damage his reputation, a party source revealed.

"I will speak here [about the matter] for the last time. I want to ask for your understanding that I am working for the benefit of the country and for our former prime minister," he was quoted saying.

"My party colleagues want me to explain to the party and I'm ready to talk to everyone. If you see that I can no longer do anything to help the former prime minister, I will do whatever you like. And I will consider my political future," Samak reportedly said.

Samak spent about 20 minutes addressing the meeting. After, some MPs including Wasit Payakabutr raised their hands to ask questions. However, Samak excused himself and left the meeting room immediately.

Samak's remarks came in response to a written request by some 200 party MPs and candidates upset by police issuing wanted notices for Thaksin and Pojaman and distributing them to stations throughout the country, according to PPP spokesman Kuthep Saikrachang.

The Supreme Court's Criminal Division for Political Office Holders earlier issued arrest warrants for the couple after they failed to show up in court last week for a hearing in a corruption case involving the Ratchadaphisek land deal.

PPP deputy leader Somchai Wongsawat, who is Thaksin's brother-in-law, mediated at yesterday's meeting between Samak and party members. Copies of the letter sent to Samak were distributed to participants yesterday.

When Samak arrived, he complained about the heavy presence of reporters and cameramen.

MP Wasit, who is close to Thaksin's politician sister Yaowapa Wongsawat, was heard saying: "They just want to photograph someone who rarely attends party meetings."

Most of the participants looked stunned at Wasit's comment, the source said.

Before the meeting, Yaowapa yesterday called on Samak to protect Thaksin's dignity and honour, as a former national leader.

Yaowapa, who holds no official executive post in the ruling People Power Party, still has good connections with many of its MPs, who come from the disbanded Thai Rak Thai Party, in which Yaowapa served as an executive.

Before the meeting, she met with many People Power MPs who are still loyal to Thaksin, PPP's Suthin said.

Yaowapa said the politicians were not pressuring the PM but simply acted on concerns by people in their electorates.

"People were really upset when an arrest warrant was issued for Thaksin. They asked the MPs, who simply relayed this concern to the party leader," Suthin quoted Yaowapa.

"The MPs just want to ask the party leader to protect Thaksin's human dignity and his status as a former prime minister - it is not for Thaksin himself," she was quoted saying.

Thaksin's sister said he did not deserve such "humiliating" treatment from the police, as there had been no court ruling condemning him.

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Student protesters caned by teacher
source: Bkk Post Aug 20 2008

Pupils marched against their school's eviction

A teacher at a school facing relocation to make way for the new parliamentary site has been accused of caning eight students, including a girl who was allegedly struck 18 consecutive times.

They were accused of skipping classes to attend a protest against the relocation of Yothinburana school in Dusit district, Bangkok, to clear the land for construction of the new parliament.

They were allegedly caned by a teacher identified as Suwattana Permpool as punishment for the apparent truancy, but their parents complained the punishment was too harsh.

Speaking on condition of anonymity, the aunt of a Mathayom 2 - grade 8 student said her niece was caned 18 times by Ms Suwattana on Monday for attending Friday's protest.

More than 500 students from the school had joined the protest march to Government House.

But the student who was allegedly caned 18 times said she had not even joined the protest march.

She said the teacher struck her 18 consecutive times in full view of other students in the classroom, but the other alleged truants _ who she said had joined the protest _ were caned only a few times each. They would apparently receive the remainder of their canings at a later date, in ''installments''.

The girl's parents took her to Vichaiyut hospital in Phaya Thai for a physical examination and presented the results to police at Tao Poon station yesterday as evidence of their complaint.

They also called on the school director to take responsibility for the alleged misdemeanour and to launch a disciplinary investigation of Ms Suwattana.

The girl's mother said a deputy director at the school had offered to mediate the complaint, but she refused.

She accepted that teachers were within their rights to discipline children who misbehaved, but also said teachers who went beyond acceptable levels of punishment should be held to account.

The mother backed up the girl's claims that she had not participated in Friday's protest.

On that day, lessons were proceeding as usual, but the school later dismissed classes because hundreds of its students were planning to join the march.

The parents of the eight students will seek an explanation from the school director today.

Neither the school director nor Ms Suwattana could be reached for comment yesterday.

Khunying Kasama Voravarn na Ayutthaya, secretary-general of the Office of the Basic Education Commission, said regulations do not permit corporal punishment of students, such as caning. Instead, teachers must use verbal reasoning to discipline students.

She said the Education Ministry will set up an inquiry panel to look into the matter.

The contentious new parliamentary site will occupy a 130-rai plot by the Chao Phraya river in Kiakkai, Bangkok.

The land is currently occupied by agencies under the Defence Ministry, Yothinburana School and residential communities.

The cabinet last month approved a compensation package of four billion baht for state-run agencies and communities to be affected by the construction of the new parliament.

Students from Yothinburana school, which occupies eight rai of the 130-rai plot, oppose the change.

The 73-year-old school has about 3,700 students.

Yothinburana school will be relocated only after a replacement institution near Wat Soi Thong in Bang Sue district is completed. Construction should take about two years.

Prime Minister Samak Sundaravej earlier said the school would be relocated to a 16-rai plot of the Defence Ministry, only 1.7 kilometres away from its present location.

The government would give one billion baht for construction of the new school, he promised

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Ed Note: Are grade 8 students now subject to caning for 'political incorrectness'? Also, with a BILLION baht dangling for a new school, one wonders if the teacher's aren't somewhat 'motivated' (also wonder if the Billion includes 'rewards' for team-players?)...

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Extraditing Vatana could be a tough task
source: Bkk Post Aug 20 2008

Graft occurred before treaty with Cambodia

Bringing convicted one-time deputy interior minister Vatana Asavahame back from Cambodia could be difficult because his offences were committed before Bangkok and Phnom Penh had an extradition treaty.

Pol Gen Jongrak Juthanont said the Thailand and Cambodia extradition treaty came into force on April 1, 2001.

Vatana was convicted in his absence on Monday of corruption in the Klong Dan wastewater treatment project, with the offences occurring between Aug 10, 1988, and Feb 23, 1991, and between April 12, 1992, and June 15, 1995.

The Supreme Court's Criminal Division for Holders of Political Positions sentenced him to 10 years in jail.

The former Samut Prakan MP had jumped bail and was thought to be hiding in Cambodia.

The national police chief said because the treaty took effect after the offences were committed, this could be a basis for contesting the extradition application.

''Vatana has done business and invested in Cambodia for such a long time that he enjoys close ties with politicians and businessmen there,'' Pol Gen Jongrak said.

''Negotiations for his extradition are expected to be difficult.''

Police would ask that the Office of the Attorney-General explore other avenues to negotiate with Cambodia for getting Vatana back.

The Supreme Court also issued a warrant for Vatana's arrest with a validity of 15 years under the statute of limitations.

Pol Gen Jongrak said Vatana might now be away from Cambodia, at least for the time being, as he was seen in Macau two weeks ago. However, it was believed he would remain largely in Cambodia where he had businesses to attend to.

Vatana runs two resort casinos in the border town of Poi Pet, opposite Sa Kaeo's Aranyaprathet district.

Information and Communications Technology Minister Mun Patanotai said he had been in communication with Vatana and he was philosophical about his fate.

Mr Mun is deputy leader of the Puea Pandin party and is known to be a close associate of Vatana.

He said Vatana, 71, had come to terms with the fact that he could go to jail over the Klong Dan scandal.

''He is now old. He might think it better to leave and go somewhere else, rather than stay in jail,'' Mr Man said.

The 15-year provision would naturally force Vatana to retire from public life, he added.

Mr Mun said Vatana's sons, Chonsawat and Poolpol, were not likely to follow in their father's footsteps into national politics. Both were more enthusiastic about local politics.

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Ed Note: Fugitive Vatana's son Chonsawat (whom alegedly assaulted a traffic cop and refused to take a breathalizer recently) was appointed as the ICT minister's deputy secretary yesterday by the Samak Govt.

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Thaksin takes legal action against PAD
source: Bkk Post Aug 20 2008

Deposed prime minister Thaksin Shinawatra ordered his team of legal advisers to take legal action against the five core members of the People’s Alliance for Democracy (PAD) for libel and falsifying the government document, according to one of Mr Thaksin's lawyers, Mr Watchara Seangprathum.

He claimed that the anti-government group was editing the arrest warrant document and attached it with the images of Mr Thaksin and his wife Khunying Potjaman. He said the group was displaying the images in different areas.

Mr Watchara said he will file a lawsuit at Dusit Police Station on Wednesday evening.

Mr Thaksin is not very happy with the PAD’s action, and he could even accuse the Royal Thai Police for letting this incident to take place, Mr Watchara added.

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Ed Note: Amazing, a fugitive whom has run from facing the law he 'fears' uses the very same system from afar for his benefit...

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Court summons convicted lawyer of Thaksin
source: The Nation Aug 20 2008

The Supreme Court issued a summons on for a former defence lawyer, of ex-premier Thaksin Shinawatra, who is serving a six-month jail term for contempt to testify as a witness in the Ratchadapisek land case.

Presiding judge Thonglor Chomngam exercised his judicial discretion to hear the testimony of Pichit Chuenban on his involvement to defend former prime minister Thaksin Shinawatra and his wife Khunying Pojaman, both codefendants and fugitives living in exile in London.
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Thaksin to seek asylum, says his lawyer
source: The Nation Aug 21 2008

Citing malicious treatment as well as a lack of security and freedom in Thailand, ousted premier Thaksin Shinawatra will be asking for political asylum in Britain, one of his Thai lawyers said yesterday.

"At this moment, Thaksin's legal team is proceeding to ask for political asylum for Thaksin and his family in Britain," said Watchara Seangprathum.

The request will refer to "malicious treatment in Thailand, where they lack security and freedom", Watchara said.

Thaksin, 59, his wife Khunying Pojaman, 51, and their three children fled to London last week soon after Pojaman was convicted of tax evasion.

Thaksin issued a statement from London a day after his arrival accusing the Thai judicial system of treating him unfairly. He asked his supporters to maintain their loyalty but fell short of saying when he would return to Thailand.

The Supreme Court is trying Thaksin and Pojaman in absentia on corruption charges, accusing him of using his political influence as premier to help his wife buy a plot of prime Bangkok real estate on Ratchadaphisek Road from the central bank at a bargain price.

They each face up to 13 years in prison if convicted. Since the case is before the Supreme Court's Criminal Division of the Political Office Holders, they would have no avenue of appeal. Authorities have already frozen Bt69 billion of Thaksin's assets pending resolution of the case.

In related development, the Supreme Court yesterday issued a summons for a former defence lawyer who is serving a six-month jail term for contempt to testify as a witness in the Ratchadaphisek land case.

Presiding judge Thonglor Chomngam exercised his judicial discretion to hear the testimony of Pichit Chuenban on his involvement in defending Thaksin and Pojaman, both co-defendants and fugitives living in exile in London.

Pichit is expected to take the witness stand tomorrow. His summons was served at the remand prison where he is serving time in connection with a Bt2-million bribery attempt, ruled by the high court as contempt and interfering with the judicial proceedings on the case.

Lead defence lawyer Kamnuan Chalopatham said that following the contempt conviction, the defence had removed Pichit from the list of defence witnesses although the judge deemed it necessary to hear his testimony.

"At this juncture, I am not sure whether Pichit's statement would be in favour of the defence," he said, arguing that everything would depend on the nature of the questions posed by the presiding judge.

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Thaksin calls long distance for 'peace'
source: The Nation August 21, 2008

Ousted premier Thaksin Shinawatra phoned different groups in the ruling People Power Party on Tuesday calling for unity and continued support for Prime Minister Samak Sundaravej, key figures in various factions said yesterday.

Thaksin made his calls from Britain from Monday night up till the start of the PPP meeting on Tuesday, according to key faction members.

Suthin Klangsang, a northeastern MP close to Thaksin's former aide Newin Chidchob, said the former PM called Newin just before the PPP meeting began on Tuesday afternoon.

Thaksin said he was aware of MPs' love for him but he wanted them to remain united and to support to Samak, the party leader, Suthin said.

"Don't blame the party leader. He has done his best. Please help stabilise the party," Thaksin was quoted as saying.

The former premier also called MPs in other groups loyal to him, such as those from the North, Northeast and Central region.

Paijit Sriworakhan, an MP from Nakhon Phanom who leads the Isaan Pattana (Developed Northeast) faction, said Thaksin phoned "all groups" in the party, calling for "things to be settled peacefully".

"He wants stability to allow the government space to run the country. If the conflict continues, the problems won't be over," Paijit said.

MP Natee Sutinphuak, from Samut Prakan, said Thaksin also talked to MPs in his group about the matter on Monday night.

Meanwhile, a source from Newin's group said Newin would fly to Britain in a few days to talk to Thaksin in a bid to clear any infighting within the ruling party.

An MP loyal to Thaksin said that Prime Minister Samak's explanation to People Power Party MPs about the police wanted posters for the ex-PM and his wife had restored unity within the ruling party.

Surapong Tovichakchaikul, a People Power MP for Chiang Mai, said Samak's remarks at the party meeting on Tuesday had helped MPs' understand the situation.

He said party MPs agreed to continue supporting the government and would still back Samak as premier.

"It seems our party is even more united now. In the past, Samak didn't come to offer his explanation [at party meetings] because he was too busy with work solving the country's problems. I believe that after the prime minister's comments on Tuesday, we will have more unity," Surapong said.

Samak insisted on Tuesday he was sympathetic to Thaksin and said he would never stab the ex-PM in the back.

Surapong said party MPs from the North had agreed to remain together even if the PPP was dissolved over the electoral fraud case involving Yongyuth Tiyapairat.

"I believe that will also be the case for party MPs from the Northeast and Central region," he said.

The MP, who chairs the House committee on finance, banking and financial institutions, said he and six or seven other MPs in his group would travel to Britain to meet Thaksin.

"We will certainly go", after passage of the 2009 Budget Bill in mid-September, he said. "We will offer him moral support and tell him some facts."

Meanwhile, PPP deputy Somchai Wongsawat said his wife Yaowapa, who is Thaksin's sister, did not attend the party meeting on Tuesday. He said Yaowapa went to the IFCT Building, which houses the PPP headquarters, simply to pay respect to a Buddha statuette she inherited from her parents.

"She knows people in the party, so it's not unusual for her to talk to her friends there," he said.

Some PPP MPs said earlier that Yaowapa, a banned former executive of the disbanded Thai Rak Thai Party, called on Samak to defend Thaksin's human dignity and his honour as a former national leader.

In a related development, lawyers for Thaksin yesterday threatened to sue the People's Alliance for Democracy for "wrongfully circulating" photos of Thaksin and his wife depicting the two as wanted fugitives.

Lawyer Watchara Saengpratoom claimed the PAD defamed and violated the privacy of Thaksin and Pojaman by "falsifying" the warrants to look like a wanted list before putting them on public display.

He said he would lodge a complaint with Dusit police to pave way for criminal and civil lawsuits.

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Ed Note: Satirical translation? 'Now, now, stop all this in-fighting khrap, let's keep our eyes on the REAL prize'... Constitution change to exonerate all- Oh, and 70 billion baht (must make the payroll at Man City among other pressing matters upcoming;)

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Asylum bid
source: Bkk Post Aug 21 2008

Former prime minister Thaksin Shinawatra and his wife are seeking political asylum in Britain, just 10 days after fleeing to London from Beijing.

Mr Thaksin also has called for unity within the People Power party, urging PPP members to stand behind their leader, Prime Minister Samak Sundaravej.

His lawyer Watchara Sangpratum yesterday confirmed Mr Thaksin and his wife Khunying Potjaman were applying for asylum and that the couple will not show up at the Supreme Court tomorrow to defend themselves in the Ratchadaphisek land case.

The last defence witness is scheduled to testify tomorrow, and Khunying Potjaman is due to appear in her defence.

On Tuesday, thousands of supporters of the People's Alliance for Democracy (PAD) rallied outside the British embassy, demanding London deny the pair political asylum and extradite them to face criminal charges in Thailand.

The Shinawatra family was photographed shopping in Guildford, Surrey on Aug 12 after the pair jumped bail in the Ratchada case. They flew to London from Beijing after attending the opening ceremony of the Olympic Games, instead of returning to Bangkok as required by their bail conditions.

Mr Thaksin is accused of abusing his authority as prime minister to aid his wife's purchase of 33 rai of prime land in the Ratchadaphisek area from the Financial Institutions Development Fund with a bid of 772 million baht, far lower than the market price of about two billion baht.

A deciding factor for the asylum seekers is thought to have been the three-year jail term the Criminal Court handed down to Khunying Potjaman on July 31 for tax evasion in another case.

Mr Watchara said Mr Thaksin had assigned a legal team to file libel and document forgery charges against five PAD leaders, for posting arrest warrants for him and his wife at various locations.

Mr Thaksin might also sue the Royal Thai Police Office for overstepping its authority, he said.

The publicity surrounding the arrest warrants sparked a rift in the PPP, with 200 party MPs and candidates on Monday sending Mr Samak an open letter criticising him for failing to stop police distributing wanted notices for Mr Thaksin and Khunying Potjaman to police stations around the country.

A source close to Mr Thaksin said the prime minister had called him by phone and explained that the police were just doing their job.

Mr Thaksin himself called key faction members in a bid to put the issue to rest, several key members confirmed yesterday.

Nisit Sinthupai, a PPP executive member and MP for Roi Et, confirmed Mr Thaksin called for unity within the party. He said Mr Thaksin urged party members to support Mr Samak, saying the prime minister had done his best.

News of Mr Thaksin's call was passed to him by Newin Chidchob before they attended the party meeting on Tuesday, Mr Nisit said.

The leader of PPP's Isan Pattana faction, Nakhon Phanom MP Paichit Sriworakhan, said Mr Thaksin phoned every faction.

"He wanted calm, so that the government can continue to administer the country," he said.

Northern PPP MPs said Mr Thaksin called during their discussion on Monday. They quoted Mr Thaksin as saying he had passed through many troubles, but the warrants caught him by surprise.

A group of northern MPs is planning to visit him in London in September after the 2009 budget is passed. Mr Newin will fly to London to meet Mr Thaksin in the next few days to clear misunderstandings over the "gang of four", a close aide to Mr Newin said.

The gang's existence was alleged by MPs of the Isan Pattana faction, who said top people in the party were trying to cash in on state projects.

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Ed Note: This makes it clear Mr. Thaksin wants PM Samak to remain at the helm of the PPP (for now). Despite Mr Newin's powerplays and the other NE factions threats, plus PPP members 'outrage' over Thaksin arrest warrants, Mr Thaksin is subtlety reminding all, unity is needed to achieve 'their' goals and the clock is ticking...

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PPP in defence of Thaksin
source: Bkk Post Aug 21 2008

People Power party-list MP Chaowarin Latthasaksiri believed ousted prime minister Thaksin Shinawatra has already applied for political asylum in Britain because he fled to Britain on August 10.

Thaksin's lawyer Watchara Seangprathum earlier said his client and wife, Khunying Potjaman, were still seeking asylum abroad.

According to Pol Lt Chaowarin, Britain would grant asylum to Mr Thaksin as the country provides full liberty and rights for everyone, adding that the ousted prime minister did not receive fair treatment from Thailand’s legal process.

On Thursday afternoon, People Power party MPs are scheduled to submit an official document to the British Embassy to Thailand, asking the British authority to grant asylum to Mr Thaksin because of the unjust laws introduced during the Council for National Security (CNS)’s period in office.

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POLITICS
Students caned for absence, not protest
- No political motive for pupils' punishment
source: Bkk Post Aug 21 2008

The caning of eight students at Yothinburana school was unrelated to their attendance at a protest against the relocation of the school to make way for a new government building, deputy secretary-general of the Basic Education Commission Mangkorn Kullavanich said yesterday.

The commission asked school heads and the Office of Bangkok Education Zone 1, which supervises the school, about reports eight students were caned after they took part in the protest.

The school said they were caned as punishment for their unexplained absence from class.

The punishment had nothing to do with the students' participation in the protest last Friday, said Mr Mangkorn. School director Manop Noppasirikul reported the incident to the commission.

According to the school, in Bangkok's Dusit district, only five were caned by physical education teacher Suwattana Permpool on Monday. The other three were not punished after providing sound reasons for their absence.

Parents of the students withdrew their complaints against the teacher filed with Tao Poon police after receiving explanations from the school director, said Mr Mangkorn.

Earlier, the aunt of a Mathayom 2 Grade 8 student said her niece was caned 18 times by Mrs Suwattana on Monday for attending the protest march. Her niece was among eight students who were caned, she said.

More than 500 students from the school had joined the march to Government House to demonstrate their opposition to the relocation plan, which would clear land for the new parliamentary site.

Kotchawan Pipatbundit, mother of a Yothinburana school student, said a group of parents whose children study there would join the anti-government People's Alliance for Democracy's march to the school tomorrow to give moral support to students.

She had not yet met parents of the caned students, but those parents had joined their children in Friday's protest march to Government House.

The new parliamentary site will occupy a 119-rai plot on the Chao Phraya river in Kiakkai. The land is currently occupied by agencies under the Defence Ministry, Yothinburana and residential areas.

The school, which occupies eight rai, opposes the change.

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Ed Note: NO political motive? One must assume it's therefore mandatory for ALL Thai students to be caned for absenteesim... It would be interesting to follow-up at the end of the semester to see if some students grades drop dramatically... perhaps the 'Physical' Education teacher/caner could supervise...

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No changes in 6 economic measures: Surapong
source: Bkk Post Aug 21 2008

The government will not adjust its six six-month economic relief measures, particularly the subsidisation of oil, according to Deputy Prime Minister and Finance Minister Surapong Suebwonglee.

He said the global oil price remains under downward pressure, but it climbed up by one dollar a barrel on Wednesday. He said there will be no changes to the six short-term economic measures because the government wants to monitor the situation further.

Commenting on the baht, which hit a nine-month low to stay at 34.15 per dollar Wednesday, the minister said the depreciation would benefit Thai exporters. However, he said the government does not look forward to the baht’s devaluation to help expand the export sector because prices of imported oil would also be higher.

The government is trying to improve the economy and boost the confidence of investors by creating transparency in the mega-projects and promoting investment in basic infrastructures, the minister concluded.

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Ed Note: The Govt apparently fails to realise, by infiltrating 'independent' agencies, watchdogs, etc, with cronies and team players and by it's MP's demanding warrants for the Thaksin's are rescinded and by cynically using public funds to offer potential voters 'free rides' (or Govt popularity assistance?) these are hardly the hallmarks of a Govt bent on transparency or inducing foreign investor confidence.

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PAD wants Thaksin passport revoked
source: Bkk Post Aug 21 2008

Hundreds of People's Alliance for Democracy (PAD) protesters marched to the Foreign Ministry on Thursday morning to call on Foreign Minister Tej Bunnag to consider revoking diplomatic passport of ex-premier Thaksin Shinawatra.

PAD core leader Sondhi Limthongkul spoke to the supporters before the march that the protest is done peacefully and without violence.

On Wednesday, thousands of PAD supporters marched to the British embassy, demanding that London deny political asylum to Mr Thaksin and allow his extradition so he can face criminal charges in Thailand.

The move came after media reported that Mr Thaksin and his wife Khunying Potjaman plan to seek asylum in the United Kingdom.

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THAI POLITICS
Autonomy is imperative for Bank of Thailand
source: Bkk Post Aug 21 2008

The Bank of Thailand's new 12-member Monetary Policy Committee approved last month by Prime Minister Samak Sundaravej's cabinet is conspicuously political.

Half of the new board comprises current or former bureaucrats closely aligned with the prime minister's ruling People Power party.

Moreover, the recent cabinet reshuffle has brought in two new faces, the chief economic adviser and deputy finance minister, who have openly called for looser and "growth-targeting" monetary policy.

With inflation running at more than twice the current benchmark rate of 3.5%, the BoT is biased towards inflation-targeting in the face of the government's preference for lower interest rates.

The long-running conflict between the BoT on one hand and the government and finance ministry on the other, is likely to intensify for the rest of this year and beyond.

However, the BoT's functional autonomy and its "inflation-targeting" objectives are likely to be maintained, owing to sustained pressure by the anti-government movement both inside and outside parliament.

If it had its way, the government would prefer to replace BoT Governor Tarisa Watanagase, who was appointed during the coup period. But this would be a huge gamble and would give virulent anti-government groups, revolving around the People's Alliance for Democracy (PAD), ample ammunition in their efforts to topple the Samak administration.

Instead, Finance Minister Surapong Suebwonglee has gone through the back and side doors by reshaping the MPC's composition and by appointing Deputy Finance Minister Suchart Thadathamrongvej to do the government's bidding.

As a host of critical judicial cases await court verdicts, Mr Samak and his cabinet ministers are in all kinds of legal trouble, and the PPP could end up being dissolved by the Constitution Court for vote fraud.

A looming general election appears on the near-term horizon, probably in the first half of 2009. The government thus wants to boost GDP growth to around 6% to lay the electoral groundwork and shore up its popularity.

In fact, Mr Suchart has blatantly called for the benchmark rate to climb down to 2% to prop up growth.

Virabongsa Ramangkura, the prime minister's new chief economic adviser, echoes a similar line.

Taking pressure off from Finance Minister Surapong, who is being investigated for legalising the underground lottery from the time he served under former prime minister Thaksin Shinawatra's tenure, Mr Suchart and Mr Virabongsa have argued that inflationary pressure will be well over the average in any event, and thus becomes secondary to addressing the people's hardship by lowering rates and bolstering economic growth by boosting investor and consumer confidence.

Their posturing has not affected the BoT's integrity and position. What will be crucial, however, is the MPC board. Half are ex-officio members from the BoT, economic planning agency and budget bureau. But the other half are holdovers and associates from the Thaksin era and from within the PPP's inner circle, including a former Thaksin adviser as MPC chairman and the current national police chief as a board member.

These six PPP-associated appointees are expected to exert pressure to bring down the benchmark rate.

But the anti-government groups, led by the PAD in the streets and the Democrat party in parliament, are on to the new MPC's vested interests.

Already the Democrats have asked the Administrative Court to annul the new MPC board. The PAD and certain segments of the press have attacked the government for endorsing the new MPC.

The government is too weak in credibility and popularity to reply forcefully, and is expected to rely on its quiet penetration and meddling with the BoT through its MPC appointees.

As a result, the face-off and stalemate in Thai politics has entered the BoT, with the MPC as yet another battleground.

The anti-government groups have become the unwitting guardian of central bank autonomy, indirectly shielding Mrs Tarisa and the BoT's monetary policy autonomy by their sheer animosity towards Mr Samak, Mr Thaksin and their allies. This stalemate at the national level can be expected to be at work at the BoT's MPC in a proxy fashion when it meets to discuss macroeconomic conditions next week.

As long as BoT officials can make their case convincingly for fighting inflation rather than pumping growth, the MPC will be divided and under pressure to go with sound macroeconomic analysis.

As the global economic downturn deepens and oil prices ease at least in the short term, price instability may not be as an immediate a concern as previously. The merits and imperatives of macroeconomic stability, not the electoral cycle, should underpin monetary policy.

Time and again, it has been shown that the BoT lacks the mandate to effectively carry its inflation-targeting policy regime. Explicit legal independence from the cut and thrust of Thai politics, rather than unreliable functional autonomy, is needed at the central bank, despite the twin shortfalls of democratic accountability and coordination with fiscal policy.

Until then, public pressure in the streets and elsewhere is needed to prevent the Samak government from ramming its "growth-targeting" goals through monetary policy.

The writer is Director of the Institute of Security and International Studies, Faculty of Political Science, Chulalongkorn University.

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Ed Note: IF this Govt had an actual economic plan at the outset, it might not feel it neccesary to 'artificially' pump up growth. The 'take-over' of the BoT board with Thaksin/PPP cronies is riddled with conflicts of interest. Also, propping-up growth by forcing down interest rates in an inflationary cycle is a dangerous 'strategy'. However, dramatically lowering the central bank rate to just 2% would certainly assist the various business-interests of the handlers of the appointed cronies...

Last, the BoT appointees were SUPPOSED to be selected from expert outsiders, ensuring a broad cross section of business and society representation and IMPORTANTLY, they were SUPPOSED to be impartial for transparency...

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HM the King offers encouraging words to BOT
By The Nation August 21, 2008

His Majesty the King offered encouraging words to Bank of Thailand Governor Tarisa Watanagase and her team in the central bank's monetary policy and reserves management.

"I wish that you could manage the money to billion or 10 billion without depleting it, so that the country has money to spend," said the King.

"I wish you achieve success for your hard work. I also wish you manage it well to prevent the country from disaster. Now we're almost facing calamity because we're not careful with our spending."

The King was speaking to Tarisa and her delegation, who presented to him the surplus income from the sale of a special banknote to commemorate His Majesty's 80th Birthday Celebration on December 5, 2007.

"I know that you're tired from your work and even get criticism that you don't do it right. I would like to thank all of you for coming here today and work hard so that the country has money to spend. Anybody who is in charge of the country's fiscal management must understand what is important for the country."
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Thai PM says Thaksin can keep passport
source: Channel News Asia 22 August 2008 1303 hrs

BANGKOK: Thailand's Prime Minister Samak Sundaravej said Friday his government would not revoke ousted premier Thaksin Shinawatra's diplomatic passport.

Foreign Minister Tej Bunnag earlier said his ministry was in the process of invalidating Thaksin's red diplomatic passport, given to former Thai leaders, after he skipped bail and fled to Britain last week to evade graft charges.

Anti-government protesters have called for stripping Thaksin of all his travel documents.

But Samak, whose party is closely allied with Thaksin, told reporters that he had no plans to take away the billionaire tycoon's passport.

"The government has no policy to revoke Thaksin's red passport," Samak said.

Thaksin's lawyer says he and his wife Pojaman would apply for political asylum in Britain, claiming that they cannot receive a fair trial in Thailand and that they feared for their safety.

Pojaman has already been convicted of tax evasion but has appealed.

The Supreme Court announced Friday that it would hand down its verdict on September 17 in a separate corruption case accusing Thaksin of using his political office to win Pojaman a sweetheart deal on prime Bangkok property.

Prosecutors and anti-corruption officials have already announced that they will ask the Supreme Court to confiscate US$2.2 billion worth of the family's assets, saying only that Thaksin was "unusually rich”.

The money has already been frozen by investigators appointed by the generals who ousted Thaksin in 2006.

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MPs to reinstate Samak if he is disqualified
source: The Nation Aug 22 2008

MPs from the ruling People Power Party said that they would vote to reinstate Prime Minister Samak Sundaravej if the Constitution Court rules to remove him from office for hosting TV cooking shows.

They said that they viewed Samak as the best qualified person from their party and that he deserved the post of government leader.

Some of the MPs pointed out that even if Samak would be disqualified by the court, there was no law to prevent him from assuming the prime ministerial post again.

The court yesterday began its hearing in a case against Samak, who is accused of violating the Constitution for hosting the two TV shows while holding the PM office.

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Defend country's reputation not Thaksin, Abhisit tells Samak
By The Nation August 22, 2008

Prime Minister Samak Sundaravej should personally intervene to restore international confidence in the Thai judicial system tarnished by the planned asylum of former premier Thaksin Shinawatra in London, Democrat Party leader Abhisit Vejjajiva said yesterday.

"The government has a direct responsibility to safeguard the country's reputation and I believe the prime minister must step in to reason with the international community," he said.

Abhisit voiced concern that Thaksin would mount a publicity campaign to smear the country by citing issues relating to justice and safety in order to boost the chance for him and his family to secure asylum.

To counter the anticipated publicity offensive, the government need to put national interests above lingering ties between coalition politicians and Thaksin, he said.

Reacting to reports Thaksin had called on supporters to help him sway the judicial review, he said leading figures should not set a bad example by undermining their own country.

Meanwhile, a group of six MPs from the People Power Party lodged a declaration at the British Embassy arguing that Thaksin faced unfair judicial proceedings and that this had driven him into exile.

Group leader Surapong Tovichakchaikul MP said he outlined how and why five laws were enacted or amended to frame Thaksin.

"I did not try to fault the judiciary but point out flawed proceedings at the level of the Office of the Attorney General and the National Counter Corruption Commission," he said.

Thaksin had no chance of being acquitted under unfair provisions, he claimed, referring to the five laws, which include the junta's announcement to form the Assets Examination Committee and amendments of the anti-graft law "tailored" for lawsuits involving Thaksin.

He said he and a number of fellow lawmakers would go to England next month to pay a visit to Thaksin for moral support.

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Ed Note: Very fitting - Samak refuses to rescind Thaksin's passport(s), PPP MP's lodge a petition with the British Embassy in SUPPORT of Thaksin and the PAD are left to protest as no one in the Govt appears wanting or willing to do so. Meanwhile, the well-intended Democrats are apparently left to alone defend Thailand's dignity from the back bench, as the Govt assists the exact opposite. In a nice touch, PPP MP's are going to the UK next month to offer Thaksin 'moral support'... Begs the question: Can a group clearly lacking morals offer moral support? Ans: Only to those of similar stripes...
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Fugitive Vatana's son says he'll do his best
source: The Nation August 23, 2008

Chonsawat Asavahame, the newly appointed secretary-general to Deputy Premier and Information and Communications Technology Minister Mun Patanotai, said yesterday that his fugitive father Vatana had advised him to do his best in the job.

"He didn't go into too many details but as his son, I know what must be done. As for his health, he told me not to get worried," Chonsawat said.

When asked if his position would be affected by his father's fleeing the clutches of the law, Chonsawat said: "My father's case is over. As his son, I am concerned for him."

He was referring to Monday's ruling by the Supreme Court's Criminal Division for Political Office Holders that sentenced Vatana to 10 years in prison for corruption over involvement in the Klong Dan wastewater-treatment project.

Vatana was found guilty of abusing his power as deputy interior minister by forcing the Land Department to issue title deeds for plots that overlapped a public area.

The plots were later sold to the Pollution Control Department to house the wastewater-treatment project.

Chonsawat yesterday arrived at his new office in Government House with Mun, whom he also regards as an uncle. Apparently Chonsawat did not see his previous boss, former deputy interior minister Sithichai Kowsurat, with such affection because he quit shortly after being appointed as secretary.

He explained yesterday that his decision had been influenced by Sithichai's concern about "all the news surrounding me".

"I was not prepared at that time, but today I'm ready to work", he added.

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Ed Note: Just can't make this stuff up - Fugitive Vatana's son (whom recently allegedly assaulted a policeman and refused a breathalizer) is appointed secretary-general to a Ministry... Certainly hope his 'concern' for his father (in hardship self-exile/hideout at his Cambo casinos) doesn't interfere with his duties to serve the PPP, er, the people...

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Court schedules land-graft verdict on Thaksin
source: Bkk Post Aug 23 2008

The Supreme Court Criminal Division for Holders of Political Positions on Friday wound up its hearings on the Ratchadaphisek land purchase case against fugitive ex-premier Thaksin Shinawatra and Khunying Potjaman, and said a final verdict would be handed down on Sept 17.

Presumably, the couple will not be present when the verdict is read. The court verdict cannot be appealed.

Ex-prime minister Thaksin and his wife jumped bail and fled to Britain from Beijing after attending the opening ceremony of Olympic Games.

They did not return to Thailand to appear at a court hearing Aug 11, and the court on the same day issued arrest warrants for them and also confiscated bail totaling 13 million baht.

The couple was charged with purchasing the property at the questionably low price of 772 million baht (US$26 million) from the Bank of Thailand (BoT) Financial Institutions Development Fund (FIDF) in 2003 while he was in office.

Ousted in a bloodless coup on September 19, 2006, Mr Thaksin was subsequently charged with alleged corruption and abuse of power.

Both Mr Thaksin and his wife have denied any wrongdoing. Khunying Potjaman was convicted on July 31 on a separate case of tax evasion and released on bail.

In wrapping up the case, the Supreme Court said it now had sufficient evidence to issue the verdict and asked both the Attorney General's Office, which is the plaintiff, and the defendants to attend or send in writing to the Court within Sept 10 for the case closure.

Soon after the couple fled to Britain, Mr Thaksin asked his team of lawyers not to present on his behalf in the court but it ordered the lawyers to continue performing their duties. (TNA)

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Thaksin offers to resign from Man City board
source: The Nation Aug 23 2008

Fugitive ex-premier Thaksin Shinawatra has offered to quit as chairman at Manchester City.

Thaksin fled Thailand where he is supposed to be facing corruption charges from his time as the country's Prime Minister.

It has put his position in jeopardy under the Premier League's Fit and Proper Persons Act. Thaksin denied all the charges but feared the controversy is affecting the Club and has offered to quit.

UK-based tabloid, the Sun reported Saturday that the club's new executive chairman Gary Cook has talked him out of it, believing they can ride the storm.

The paper quoted Cook as saying "Dr Thaksin is embarrassed about the indignity brought on all the entities — the club, the Premier League — he never intended this.

"I didn't realise the impact this situation would have. I feel it's a little embarrassing and the owner thinks it's embarrassing. Dr Thaksin has been really open about this.

"He has said to me, 'if you need me to resign from the football club as a director, because it would serve the needs of the Premier League, then I'm fine with that as long as that doesn't change any other thing.'

"I think there is a very loose term about what is 'fit and proper.' It is almost a tongue-in-cheek term that you would use for Premier League football over the last 10 years. There are plenty of unfit and improper individuals.

"But what I want to do is make sure we get it cleared up. We are restructuring the board.

"I would like to bring in some non-executive members from industry — captains of industry, who can help the football club move to its long-term vision."

But Cook admits if the Premier League find Thaksin is not fit and proper they will have to take him off the board.

He said: "That is one of the reasons why we would look to maybe take him off the board as a director. We're talking about a lot of different things right now."

Thaksin may then have to transfer his stake in the club. he took over a year ago for 81.6million pounds.

Since then City have invested nearly 80m pounds on players, although only a quarter of that has been paid.

The club are looking for extra investment as he has had his assets frozen in Thailand and that is restricting his investment.

Cook said: "His lawyers are working through everything. We have talked about selling part of his stake to an equity partner who would come in and take a little bit of the pressure away from him so the Premier League would get more comfort out of the restructuring of the board.

"We've talked about so many different options. But one thing we are adamant about is not to give up the majority stakeholding.

"Dr Thaksin is in a political situation and a case that affects his assets, so that's well documented. So that's a hurdle.

"So the hurdle is, is there never going to be any more money? The challenge is, 'Dr Thaksin, what are we going to do?' He says, 'Well here's what we are going to do and here's how we are going to do it, because this will all resolve itself. But I need some time. OK, great'.

Thaksin felt so bad about what has happened that he is avoiding Eastlands — including tomorrow, when Mark Hughes' side clash with West Ham.

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Ed Note: More likely avoiding being jeered and booed by Man City fans... Of course, Mr Thaksin has a 'fix' for all this, simply 'pretend' he's gone away but is still in-effect 'running' the team via proxies - he may have had some practise at this (sounds familiar?)

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Eyebrows raised over 'specialists'
source: Bkk Post Aug 23 2008

Civil servants in the Justice Ministry threw up their hands in frustration when the names of the newly-appointed nine specialists to the Department of Special Investigation's (DSI) special litigation committee were announced recently.

When they looked at the list, they realised that political influence had surfaced everywhere.

One of the new specialists is Chaiyawat Wibulsawat, the former central bank governor. His economic expertise is indisputable and he is said to have won praise from former prime minister Thaksin Shinawatra.

After stepping down as central bank governor, he was appointed chairman of the board of the Krung Thai bank after serving as board chairman of SC Asset Corporation, a property development company established by the Shinawatra family.

Audit commissioner Raweeporn Kuhirun is the only woman among the specialists. She was nominated by DSI chief Pol Col Thawee Sodsong.

Mrs Raweeporn was a classmate of former transport minister Suriya Jungrungreangkit and Education Minister Somchai Wongsawat at the National Defence College.

She once disagreed with the tax audit on the sale of shares in Shin Corp to Temasek Holdings via Ample Rich by the Shinawatra family.

It is not hard to see why Pol Gen Luan Panrosthip, the former chief of the Central Investigation Bureau, made it as one of the committee members.

Being the former boss of the present DSI chief as well as enjoying close ties with Pol Gen Sombat Amornwiwat, another former DSI chief who is the younger brother of the present justice minister Sompong Amornwiwat, speak volumes about his appointment.

Former attorney-general Rewat Chamchalerm was also appointed as a member of the committee. After retiring, he served as state broadcaster MCOT board chairman with Mingkwan Sangsuwan, now the commerce minister, in charge as president.

But the new special litigation panel is not without some good names. Vasit Dejkunjorn, a former police chief, and Pradit Ekmanee, a former Criminal Court chief justice, are included.

Pol Gen Vasit was pivotal in the reform of the police force, while Mr Pradit spearheaded efforts to oppose the plan to move the Administrative Court to the control of the Council of State during the Chavalit Yongchaiyudh government. Former judge Sawat Chotipanich is another new committee member.

The DSI's 21-member special litigation committee has the prime minister as chairman and the justice minister as deputy. Other members include the heads of civil service agencies.

The panel's task is to decide whether a criminal case should be treated as a special case and be taken over and handled by the DSI.

A vote requiring two-thirds of the panel members' approval is required for a criminal case to be taken up by the DSI.

But whether the committee as a whole will be free of political meddling remains a big question.

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Ed Note: So goes another supposedly 'independent' agency... The seemingly hapless DSI were very useful to Mr Thaksin in 'taking over' several key cases which might implicate senior Govt figures and then NOT finding any suspects, or, helpfully chasing endless dead-ends whilst 'appearing' to be actually doing something... However, the DSI is seemingly quite adept at resolving cases against Govt opponents...

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MEKONG DEVELOPMENT
Irregularities suspected over push for dam
source: Bkk Post Aug 23 2008

Senators and environmentalists suspect irregularities involving the planned construction of the 120-billion-baht hydro-power dam on the Mekong river being pushed by the Samak Sundaravej administration.

Their focus is on the signing of the Memorandum of Understanding (MoU) between former foreign minister Noppadon Pattama and the Laotian deputy prime minister and foreign minister in March to jointly build the dam on the world's 12th longest river.

They say the signing of the MoU bypassed parliamentary approval and the government had failed to take into account public participation, particularly villagers affected by the dam construction.

Mr Noppadon also agreed with the Laotian proposal to commission Italian-Thai Development Plc to conduct the feasibility study of the project without holding a proper bidding contest as required under Thai law.

Senator Prasarn Marukpitak, who chairs a senate panel probing alleged irregularities involving the Ban Koum dam project, yesterday submitted a motion against Foreign Minister Tej Bunnag, asking him to explain why the government had signed the MoU so hastily with Laos.

The MoU was signed on Mar 25_less than two months after the Samak cabinet took office.

Mr Tej said the project was in line with the two governments' previous agreement to develop hydro-power plants in the Mekong river basin which would help secure economic development in both countries.

''The electricity produced by the dam would help boost Laos' income, and at the same time, increase Thailand's energy supply,'' he said.

Regarding the selection of Italian-Thai Development Plc to conduct the feasibility study without following state regulations and procedures laid down for contracting private firms, Mr Tej said this should not cause any damage to the country because the firm agreed to conduct the study free of charge.

The foreign minister, however, said the two countries were still a long way off from deciding whether the dam should be built. The final decision, he said, would be made after the firm completes its feasibility and environment and health impact assessment studies, expected to take around 30 months.

The dam, if built, would be the first on the lower Mekong river.

Villagers living along the Mekong river banks in Ubon Ratchathani's Khong Chiam district, where the dam would be built, have protested against the construction for fear it would destroy their livelihood and the fragile ecology of the river.

Proposed by the Department of Alternative Energy Development and Efficiency in 2005, the dam will be built on the Mekong river in Thalong village of Khong Chiam district, opposite Koum Noi village in Champassak province of Laos.

It is expected to produce 1,872 megawatts of electricity.

The dam's reservoir is expected to inundate over 84,000 rai of farmland and Mekong riverside communities in Khong Chiam and Khemarat districts.

Some riverside areas in Laos would be submerged as well.

According to Pitpibul Lakhonwong, deputy headman of Thalong village, the dam would uproot everything they have if the project is implemented.

The villagers might face forced relocation as the village would be turned into a huge construction site.

The dam will completely destroy the Mekong river, which means the destruction of the villagers' livelihood as they were dependent on fisheries and riverside agricultural activities, he said.

''We are very happy with our life today. We are not rich, but we have abundant food. Our village is small, but it is peaceful. We don't want the dam,'' he said.

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Ed Note: Wot? MoU's bypassing parliamentary approval, no public input, no bidding as required by law... all hallmarks of this Govt's 'building investor confidence'.... The pre-chosen contractor doing the assessment for free won't expect anything in return, nor ally the specs to self-suit? Ah well, a friend from the UK is currently building a home near the Mekong in Khemarat - perhaps he may not need to drill a well...

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New bid for Thaksin cash
source: Bkk Post Aug 23 2008

Bank told to hand over B12bn from his account

The Revenue Department is seeking a transfer of 12 billion baht from the frozen accounts of former prime minister Thaksin Shinawatra in an alleged move to have the money returned to his two adult children later.

Siam Commercial Bank (SCB) confirmed it had received a letter from the department demanding it transfer the money to the department yesterday.

The letter was sent to the bank as the Office of the Attorney General is due to ask the Supreme Court's Criminal Division for Holders of Political Positions on Monday to order the seizure of the 76 billion baht assets of Mr Thaksin's family. The assets were frozen following the Sept 19, 2006 coup that toppled his government.

Ongorn Abhakorn na Ayuthaya, SCB's executive vice-president for corporate communication, said the bank was instructed by the department to transfer money kept in two Shinawatra family accounts at the bank.

Of the 76 billion baht of Shinawatra assets ordered frozen by the Assets Scrutiny Committee (ASC), about 39.63 billion baht was deposited with the SCB.

The bank's executive board met to discuss legal implications immediately after receiving the letter.

The bank, however, did not transfer the money to the department as requested since the meeting was held past office hours.

A high-ranking official at the Revenue Department has ordered Mr Thaksin's son and daughter, Panthongtae and Pinthongta Shinawatra, to pay income tax of 12 billion baht from their earnings from Shin Corp share transactions between themselves and Ample Rich Investment Co.

The Shinawatra siblings have been accused of evading tax payments for their estimated earnings of 15 billion baht from the transactions.

The estimated earning was calculated from the fact that the Shinawatra family's British Virgin Islands-based Ample Rich Investment Co sold 329.2 million of Shin Corp shares to the siblings at one baht per share on Jan 20, 2006, when the market price was then 47.25 baht per share.

The official said that because the siblings have not paid the 12 billion baht tax money, the Revenue Department has ordered the siblings' assets to be frozen. However, the order could not be enforced as the siblings' assets have already been frozen by the ASC.

Once the SCB handed the 12 billion baht to the Revenue Department, the department's appeal panel could rule on an appeal from the Shinawatra siblings that the siblings were not required to pay the 12 billion baht tax.

Depending on what the panel decides, the department could be then required to return the 12 billion baht in frozen money to the Shinawatra siblings.

Jitmanee Suwannapool, director of Regional Revenue Office 1, denied the department planned to return the 12 billion baht to the Shinawatra siblings.

She said her department is considering whether the department could enforce Article 12 of the Revenue Act, which allows the department to seize or freeze and sell assets of tax-evaders.

Mrs Jitmanee said the ASC has higher authority than the Revenue Department in terms of asset freezes. For this reason, the Revenue Department decided not to seize the 12 billion baht in unpaid tax from the Shinawatra family at present, but would wait until the Supreme Court rules on the ASC's request to seize the family's assets.

Mrs Jitmanee said the department could get into trouble if it enforced Article 12 right now. If after seizing the 12 billion baht, Mr Panthongtae and Ms Pinthongta paid the unpaid tax, the department would have to immediately release the frozen assets.

Then, if the Supreme Court ruled that the family's 76 billion baht assets must be seized, the department could be held responsible for its decision to unfreeze the 12 billion baht which is part of the 76 billion baht in frozen assets.

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Ed Note: This may seem a bit confusing but the bottom line appears to be - the Govt's team-players over at the Revenue dept snatches Thaksin's kids frozen 12 billion from the ASC freeze, alegedly for not declaring or paying tax - THEN the 'poor' kids launch an appeal and PRESTO, 12 billion or so is returned (and not likely to remain in Thailand for even milli-seconds;)

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Democrat Party says Revenue Department's release of Shinawatra assets worth THB 12 Billion suspicious
source: PRD Aug 23 2008

The Democrat Party is calling attention to the incident in which the Revenue Department unfroze more than 10 billion Baht in assets belonging to the Shinawatra family.

Democrat Party Deputy Secretary General Korn Jatikawanit (กรณ์ จาติกวณิช) said that the Revenue Department's release of 12 billion Baht in assets frozen by the Asset Examination Committee, and belonging to Mr. Panthongthae and Ms. Pinthongta Shinawatra (นายพานทองแท้ และ นางสาวพิณทองทา ชินวัตร), the children of former Prime Minister Thaksin Shinwatra, was suspicious.

Mr. Korn said that the Revenue Department's claim that the assets were being unfrozen for fines and tax purposes was unusual, as the department had no authority over the assets, and only a court of law could authorize their release.

The Democrat Party Deputy Secretary General believes that the assets were released in order to allow the Shinawatra family to reclaim them. Mr. Korn is urgently calling on the Director-General of the Revenue Department to explain the matter and to address the news.

He said that calls to the office of the Revenue Department's Director-General and Deputy Director-General have so far been unanswered.

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Ed Note: Reading the above, it would appear the transfer has already taken place then? IF so, this would really 'fire-up' the PAD moms n pops (at least the Thaksin's can do more than window-shop in Guilford this weekend;)

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Puea Thai party in talks on new home - Shinawatra Thai Silk building eyed as HQ
source: Bkk Post Aug 23 2008

The Shinawatra Thai Silk building has started clearance sales to make way for the Puea Thai party, a new political party registered by a group of People Power party (PPP) MPs, who want to move in.

The ground floor of the building on Rama IV road, where silk products are sold, will be used as the headquarters of the Puea Thai party, a back-up for the ruling PPP, said a source. Clearance sales have been started to sell off stock, by September this year.

Songkhram Kitlertpairoj, a PPP MP for Samut Prakan and one of the people who registered the party, said negotiations were being held with the building owner over rental fees.

Puea Thai would not occupy the whole building, he said. The party would rent some parts of the building for its headquarters.

The party was set up as PPP members prepare for the expected dissolution of their party.

Mr Songkhram refused to confirm that former permanent secretary of the interior Sudjarit Patchimnand would be chosen to lead the party, saying Mr Sudjarit was one of several choices.

The new party would hold its general assembly within 1-2 months to elect its executives. Former PPP candidates and former party MPs have applied for party membership.

Surawit Khonsomboon, a PPP MP for Chaiyaphum, said several party MPs had visited their constituencies and told local residents that the PPP, if dissolved, already had a new home in the Puea Thai party.

Sakda Khongphet, a PPP MP for Roi Et, said Puea Thai was ready to enter the political race as the Election Commission had already endorsed the party.

He said all factions of the PPP, including veteran politician Newin Chidchob's faction, would move to Puea Thai if the PPP was dissolved.

''Mr Thaksin earlier told me the PPP would not survive. However, we are not worried as some phuyai [senior figures] in our party have already prepared the Puea Thai as a new home.

''Those who see the abbreviations or the logo of the new party will understand that it is Mr Thaksin's party. Thor means Thaksin and Phor means Potjaman [Mr Thaksin's wife],'' said Mr Sakda.

Boonjong Wongtrairat, a PPP MP for Nakhon Ratchasima, said he would seek a party resolution over whether to continue supporting Samak Sundaravej as the party leader and the prime minister during the party's meeting on Tuesday.

The PPP would collapse if there were rifts among party members, he said. To protect the party, he would ask party MPs to continue to support Mr Samak.

Meanwhile, a group of PPP MPs said they would not vote for two draft amendments involving the Constitution Court's handling of cases and the court's consideration of criminal cases against political office holders.

Sunai Jullapongsathorn, a list MP for PPP, said the many PPP MPs disagreed with the draft amendments as the drafts went against democracy, which promotes the balance of the legislative, executive and judiciary branches. However, the draft amendments, proposed by the judiciary branch, had bypassed the executive and legislative branches, he said.

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Ed Note: Thus, it appears likely the 'new' TRT/PPP party may find a home office in a Shinawatra building, not surprisingly (also quite touching the RESCUE-party is named after Mr Thaksin and the missus;)
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PAD plans 'largest ever rally' on Tuesday
source: The Nation August 24, 2008

Chamlong Srimuang, a core leader of the anti-government People's Alliance for Democracy (PAD), said yesterday the group would stage its "largest ever rally" on Tuesday.

It wants to oust the Samak Sundaravej administration, which it regards as corrupt and a proxy of ousted PM Thaksin Shinawatra.

Chamlong urged PAD supporters to join the protest on Tuesday morning at 7am but refused to say to where the demonstrators would march. He insisted the PAD was not calling for a coup and added that even if it did the military would not comply.

The PAD leadership will inform demonstrators on Tuesday morning where they will march. Sites have been targeted, especially the proposed Parliament building at Kiak Kai, a project that he described as "a waste of money".

He insisted that the demonstrators would not besiege Government House. The march will be peaceful and will not destroy public property.

Chamlong denied that Tuesday's gathering was a way to end the marathon rally, now reaching 90 days. He added that the group's leaders were not seeking any political gain either, because "we're not politicians".

The rally, he said, would continue until the government resigned. He defended the move as better than "analysing politics on a daily basis".

Chamlong denied a claim by deputy government spokesman Nattawut Saikua that there had been conflict within the PAD, saying the rally would not have lasted 91 days if conflict truly existed.

He added that he was confident police would keep pro-Thaksin supporters - who will also hold a rally on the same day at Chatuchak Park - at bay.

Meanwhile, Pracha Prasopdee, People Power party MP for Samut Prakan, questioned the PAD's motive, saying that perhaps Chamlong or Sondhi Limthongkul wanted to become prime minister.

Pracha added that if the PAD wanted to support opposition leader Abhisit Vejjajiva as PM, then Abhisit should appear at the PAD rally.

Many pro-Thaksin, anti-coup groups such as Saturday People Against Dictatorship, taxi-drivers and White Doves, will meet, discuss the situation and hold a press conference on Tuesday. They expect to hold their own rally at Sanam Luang on Friday.

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Reinstatement of Duang Yubamrung is lawful: PM
source: Bkk Post Aug 24 2008

Prime Minister and Defence Minister Samak Sundaravej criticised the National Counter Corruption Commission (NCCC) for setting up a panel chaired by its spokesman Klanarong Chanthik to probe the transparency of the reinstatement of Sub-Lt Duang Yubamrung, the son of former interior minister Chalerm Yubamrung.

The premier insisted Sub-Lt Duang’s recall into the military service was transparent and lawful, and asked the NCCC what damage had been done to the country after he, as the Defence Minister, approved his reinstatement in compliant with the law.

Commenting on the People’s Alliance for Democracy (PAD)’s plan to hold another major rally on Tuesday, he said the country would not be at peace if this continues.

Mr Samak also said he does not understand why the anti-government group is protesting against the new parliament construction project, but he plans to explain the matter again.

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Ed Note: REFRESHER - Duang Chalerm (son of ex-Interior Minister Chalerm) was accused of murderering a policeman in a nightclub in 2001 but after 'escaping' to Cambodia (sound familiar?) all the witnesses suffered sudden memory-loss syndrome, thus Duang returned, changing his name and eventually re-instated as a military attache to the political division - by Mr. Samak. The PM may be wondering what all the fuss is about, afterall, with his cabinet and party coalition already riddled with alleged criminals, however, one suspects some may find these ongoing appointments morally repugnant.

Mr Samak also states he 'doesn't understand' the opposition to building a multi-billion baht NEW Parliament, all proceeding without debate, or over-sight, or checks-balances, pushed as a sudden top priority project, all at a time when the country is facing multiple pressing issues (many of which originate from his Govt)

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THAKSIN'S SAFETY FEARS AT MAN CITY
source: The Star Uk Aug 24 2008

"He wants to be at this ground on Sunday but he is hearing advice from many others about being in a public space" (City executive chairman Garry Cook)

Thaksin Shinawatra has been advised to stay away from Eastlands tomorrow because of fears for his safety.

The Manchester City owner has not returned to the club since he fled Thailand where he faces fraud and corruption charges.

The former Thai Prime Minister is currently in exile in Guildford but had planned to watch City’s first home league game of the season — against West Ham.

But Thaksin’s case has caused deep divisions in his homeland where demonstrations took place in the capital Bangkok this week demanding his return.

And the City supremo has opted to lie low in the face of security threats — and to avoid turning the game into a focus for political unrest.

City executive chairman Garry Cook said: “He wants to be at this ground on Sunday but he is hearing advice from many others about being in a public space for various reasons.

“People may want to come and show their support from his country and he doesn’t want to use this as a political platform.

“He doesn’t want to ostracise City fans. He doesn’t want them to think that he is using it for the wrong reasons.”

And Cook added: “There has been a threat to his safety worldwide and he has to be conscious of that. But I think one of the safest places for him to be right now would be in this stadium.”

Thaksin’s ongoing court case means £800m of his personal fortune remains frozen in Thailand.

That has created cash-flow problems and Cook admits the owner is trying to attract new investors to fund Mark Hughes’s remaining summer buys.

But the money man is adamant there is no cash crisis.

He insists Thaksin has no intention of selling up although he would step down as chairman if he falls foul of the Premier League ‘fit and proper person’ regulations.

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Democrat wants PM to lift Thaksin's passport
source: The Nation Aug 24 2008

Democrat party deputy secretary-general Thepthai Senpong called on Prime Minister and Defence Minister Samak Sundaravej to consider lifting the diplomatic passport of deposed premier Thaksin Shinawatra to draw a distinction between the democratically elected government and the coup installed government.

Mr Thaksin’s diplomatic passport was previously revoked by the military installed government following the September 2006 coup led by the Council for National Security (CNS).

Mr Thepthai said the People Power party (PPP) members should not regard the lifting of Mr Thaksin’s passport as an act of insult, but they need to understand that the ousted prime minister can make mistakes. He also criticised Mr Thaksin for making statements damaging the country.

The Democrat member added that the National Counter Corruption Commission (NCCC)’s decision to probe the reinstatement of Sub-Lt Duang Yubamrung, the son of former interior minister Chalerm Yubamrung, into the military service is an interesting matter. He believed it could be a political patronage between Prime Minister Samak and Pol Capt Chalerm.

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Abhisit believes Samak will not resign because of mass protest on Tuesday
source: The Nation Aug 24 2008

Democrat Party leader Abhisit Vejjajiva said Sunday that Prime Minister Samak Sundaravej would not resign because of a mass demonstration planned by the People's Alliance for Democracy on Tuesday.

He said he could not figure out what would the last PAD's measure to pressure the government to resign.

But he said all sides must ensure that the rally would not erupt in violence.

He said Samak had never responded to other demands of the PAD so he would definitely not resign as demanded by the PAD.
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Ed note:

In a western country, any singular aspect of the political shenanigans of just the past week would probably cause judicial enquiries, mass-resignations and public outrage...

It appears the PAD rally has predictably picked up support, not surprising given the events of just the past 4 days...

Live streaming coverage options:

PAD rally-site live feed:
http://www.manager.co.th/Home/news1/astv56k.html

English commentary (news/updates on the hour)
http://www.astv-tv.com/toc_broadcast.html


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Ed Update:

live on True Sport 1 currently, 35 mins in, Man City nil, West Ham nil and 'Chairman' Thaksin is indeed in attendance at Eastlands. Ireland had a great opportunity, no doubt continuing to increase his exit-transfer value. West Ham's Noble uncharacteristically sent off with double yellows and Cole sidelined early with an injury, it looks promising for the Blues. Moreover, with dominant possession and two goal posts struck already, City look a team devoted - deservedly to Hughes leadership. And no Thai 'flag' incidents, as yet...
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Chaiya plans early easing of foreign investment restrictions
source: The Nation August 25, 2008

Foreign businessmen should soon find it easier to invest in Thailand, as the Commerce Ministry is planning amendment of the protected sectors listed in Annexes I, II and III of the Foreign Business Act (FBA).

Commerce Minister Chaiya Sasomsap last week said he would soon ask the Cabinet to approve the setting up of a committee to consider amendment of the FBA, as a way to increase confidence among foreign investors amid the continuing political uncertainty.

The ministry plans to revise the business types listed in Annexes I to III - the list of protected businesses under the Act - by removing some businesses in which Thailand is deemed ready to compete with foreign investors.

"The ministry will also hold discussions with other agencies to ensure that, this time, amendment will create fair conditions for both Thai and foreign businessmen," said Chaiya.

However, the ministry will still reserve some business sectors for Thais if it finds there are still major concerns over low competitiveness in particular industries.

The amendments should make the Act more concise and flexible for foreign investors, enabling them to keep up the momentum of foreign investment in Thailand, Chaiya said.

The minister said there would, however, be no change in the definition of "foreign investors", who can hold no more than 50 per cent of the shares in firms in business listed in Annexes I to III unless they receive permission to do so from the FBA subcommittee.

The ministry will not introduce the concepts of "controlling voting rights" or "management control" for foreign shareholders, as such a move would destroy investor sentiment.

Last year, the National Legislative Assembly voted to tighten the scope of foreign business operations by expanding the definition of "management" and "voting rights" from simply the control by foreign shareholders of a company, as in the original Foreign Business Act of 1999. The final version of the definition was not, however, made public after the end of the assembly's term early this year.

Businesses listed in Annex III are expected to become more flexible towards foreign investment under the latest proposed changes. These include rice milling, fisheries, forestry, accountancy services, service businesses, legal services, agriculture, engineering, leasing, advertising agencies and retail and wholesale.

Chaiya said the panel that would consider amendment of the Act was expected to complete its task by the end of the year, to ensure that the new conditions can take effect next year - and that foreign direct investment will be stimulated as a result.

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Ed Note: Since enacting a 'foreign-friendly' business act has been much 'talked about' by the Govt, this is most welcomed- particularly no 'management' or 'voting rights' handcuffs. However, the headline gets ahead of itself, potentially misleading foreigners to believe all restrictions will ease. A KEY point, foreigners still to be legally restricted to 50% share of 'their' own Co, thus, the nominee shell-game and ambiguity continues. HOPEFULLY, after a certain coming political change, someone in the Govt may take a SERIOUS look at the FBA and make pro-active changes providing a win/win. This is a huge opportunity for Thailand, whenever they truly decide to take that next bold step.

ps: Blues won 3 nil

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SCB asks court to rule on B12bn
source: Bkk Post Aug 25 2008

Will keep frozen funds until 'conflict' clarified

Siam Commercial Bank (SCB) has asked the Administrative Court how it should deal with the demand by the Revenue Department to hand over the 12 billion baht it holds in the frozen accounts of the Thaksin Shinawatra children.

The bank said yesterday it will keep the disputed money until the issue has been clarified.

The bank's statement said it had petitioned the Administrative Court for a ruling.

It has also sent a letter to the National Counter Corruption Commission (NCCC) and the Office of the Attorney-General requesting their views.

The bank said it received a written order from the Revenue Department on Friday requiring that it hand over 12 billion baht frozen in accounts in the names of Mr Thaksin's adult son and daughter, Panthongtae and Pinthongta, for settlement of a tax obligation.

It acknowledged the instruction and was ready to comply, but the accounts were under an attachment order issued by the Assets Scrutiny Committee (ASC).

It was impossible to comply with both orders, which were conflicting.

''Should the bank follow one order, the bank will be subject to a criminal charge on the grounds of violation of the other order,'' it said.

The requested sum is part of the 76 billion baht of Shinawatra assets ordered frozen by the now defunct ASC. About 39.63 billion baht was deposited with the SCB.

The ASC's cases have been taken over by NCCC.

Mr Panthongtae and Ms Pinthongta are accused of evading tax on estimated earnings of 15 billion baht from the sale by the Shinawatra family's British Virgin Islands-based Ample Rich Investment Co of 329.2 million Shin Corp shares to the siblings at one baht per share on Jan 20, 2006, when the market price was then 47.25 baht per share.

''As this important and sensitive issue arises at the time the Office of the Attorney-General lodges a lawsuit with the Supreme Court to seize assets of related parties in the case, the bank is obliged to consider the order prudently,'' the statement said.

The board of directors would discuss the issue shortly.

There was speculation the Revenue Department had acted on the orders of Finance Minister Surapong Suebwonglee and the money, if transferred, might be returned to the Shinawatra family.

Mr Surapong denied the speculation on Friday, saying the ministry had nothing to do with the department's action.

It was not clear which agency had the authority to freeze or unfreeze the assets, he said.

Deputy Attorney-General Waiyawuth Lortrakul said yesterday nobody is allowed to transfer the money without the court's permission.

The prosecution team handling the seizure of the assets has finalised its 124-page indictment and will today ask the Supreme Court's Criminal Division for Holders of Political Positions to order the seizure of the assets, he said. Unless the court orders otherwise, the assets must remain frozen until the court delivers its final verdict.

Mr Waiyawuth said the assets seizure case is a civil matter. If the court accepts the case and issues summonses but the defendants do not appear in court, the trial can continue in their absence.

Democrat party deputy leader Korn Chatikavanij said the Revenue Department had no authority to unfreeze the assets.

''The department estimated the tax to be collected from them two months ago. Why did it have to rush to get the frozen money to pay the tax?'' he said.

He said the department was trying to bring the money within its authority so it can begin tax appeal proceedings.

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Ed Note: No shopping-spree at Guilford or Man City then and back to plan A? -Constitution change and NCCC/ASC/AEC along with all charges 'wishfully' disappearing, with a simple stroke of a pen...

Hang onto your hats folks, this is going to be a frantic week. With the Attorney General's Office left with no choice but to order Thaksin's 76 billion forfeited by the state (for the state?) and the EC ruling on PPP dissolution (if they haven't been infiltrated;) and the PAD promising a huge rally (to where?), plus the usual 'unexpected' events/announcements, should be a very interesting week ahead
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Finance Minister affirms orders for bank to hand over Thaksin's frozen billions

To follow all the latest NEW developments, please click continued topic HERE:

http://www.bahtsold.com/forum/viewtopic.php?t=3357



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