Alongkorn also accused her of submitting a false asset declaration on Monday. Yaowapa, a sister of caretaker prime minister Thaksin Shinawatra, who rarely speaks to the media, said she was confident she would be found innocent and was ready to be investigated.

"But I'd like to ask him not to discriminate and check only government politicians, and to be a gentleman. I'd like to ask him to check the Financial Sector Restructuring Authority also,'' she said.

It was unfair to drag her children into politics, she added. "Ask Komkai Polabutr [a former Chat Thai Party MP] how she would feel if her child was accused without grounds,'' Yaowapa said.

She said she had faith in politics and politicians because they volunteer to work for the country, not to destroy colleagues.

"It is cruel. Many people want to enter politics, but if they do they have to be dragged into injustice,'' she said.

Yaowapa said she did not plan to counter-sue Alongkorn and declined to discuss the issue of share transfers to her children, saying she would discuss this with the graft watchdog.

Meanwhile Labour Ministry permanent secretary Somchai Wongsawat, Yaowapa's husband, stuttered when asked about the case that he and his wife would be probed.

"My family and I correctly submitted the asset declaration so we are not perturbed by the accusation," Somchai said.

"But when Alongkorn received wrong information and spoke against us without knowing the truth, the damage has been done to us. We might have to counter-sue him. I will consult with my wife first,'' he said.

For his part, Alongkorn denied trying to harass Yaowapa's children by implicating them in the graft case, saying he would not have named them if there was no information linking them to the allegation.