Published on February 01, 2006

WAS IT TYCOON’S INTENTION: to exploit Thailand’s natural resources? If you believe the sky belongs to Shin Corp and the land belongs to Charoen Pokphand, then you should believe that the underground belongs to Yian Pin, or Chanchai Ruayrungruang. Yian Pin is the foreign affairs adviser to the prime minister who is being accused of reaping what others have sown from a joint-venture project, Asean Potash Mining Plc.

Democrat MP Thaworn Senniam alleges that Yian Pin has injected just Bt26 million, but has been able to acquire a 49 per cent stake in a company in which more than Bt1.1 billion has been invested.

However a former chairman of Asean Potash Mining, Sommai Phasee, denies the allegation, insisting that the Finance Ministry still holds 71 per cent in the business. The Finance Ministry has not yet allowed Yian Pin to increase his shareholding from the current level of 2.24 per cent, despite the company’s directors from Asean countries having approved the increase in his shareholding.

Asean Potash Mining manages a giant project in Chaiyaphum province conceived and endorsed by members of Asean. The potash mine has an estimated value of Bt300 billion. Thailand holds 71 per cent of the company, Indonesia and Malaysia hold 13 per cent each and Brunei, the Philippines and Singapore, 1 per cent each. Potash is a key raw material of chemical fertiliser and industrial salt is a by-product.

With the help of certain powerful government figures, the door has been opened for Yian Pin to amass an interest in Asean Potash Mining.

Yian Pin first established his name in the real estate business of the Ban Chang group, then moved to operate a steel and infrastructure business, which eventually led to close ties with Pongsak Ruktapongpisal, who has since joined the Cabinet and is now transport minister. It was Pongsak who introduced him to Prime Minister Thaksin Shinawatra.

Yian Pin was appointed adviser to the Parliament president in October last year and was made chairman of the Thai Rak Thai Party’s branch in China. When his close friend Pongsak was appointed industry minister, Yian Ping sought a licence to operate a mining business.

He followed a plan to acquire a significant stake in Asean Potash Mining by registering the Sino-Thai Potash Development Group in Singapore in September 2004, with registered capital of Bt3 billion, of which only Bt50 million was paid-up. When he bought a stake in Asean Potash Mining, the transaction was carried out in the name of Ruaychai Inter National Group Co, which operates rented apartments in the Klong Toey area.

Advisers to Asean Potash Mining had earlier proposed six experienced companies for the Industry Ministry to select as partners for the mining firm, but former minister Pinij Charusombat declined to choose any of them.

When the ministry sought a partner in a second round, two companies were proposed: one was Yian Pin’s and the other was Sinochem Corporation.

Asean Potash Mining, led by Sommai as chairman, picked Yian Pin’s company even though he had never operated a mining business.

The company restructured its ownership with Yian Pin holding 49 per cent, even though he paid only Bt10 million for his initial 2.24 per cent stake, purchased in February last year. After the restructuring, Thailand will see its ownership fall to 36 per cent. The country has already spent more than Bt700 million investing in Asean Potash Mining.

Two questions arise from this run of events: was it Yian Pin’s intention to exploit Thailand’s natural resources, or is there someone in his shadow?

The man who has admired Yian Pin all along is Industry Minister Pongsak, who complimented him by saying: Yian Pin is a Thai citizen, but he could not find success in Thailand, so he moved to China. However, he is grateful to Thailand. Why do we dispel people who have shown gratitude to Thailand?

Indeed, Thai Rak Thai should give him The Most Grateful Person of the Year award.

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