The ruling Thai Rak Thai Party launched a counter-attack on the Democrats on Saturday by filing a complaint with the Department of Special Investigation (DSI) alleging that the auctioning off of bankrupt financial institutions after the 1997 economic meltdown under a Democrat-led government had been a sell-out of national assets.

Former prime minister Chuan Leekpai, who headed the government at the time, discounted the move as a mere distraction from allegations of substantial corruption under Thaksin Shinawatra, Thai Rak Thai founder and head.

Twenty Thai Rak Thai MPs led by party executive member Veera Musikaphong said at a meeting with DSI chief General Sombat Amornviwat that the auction of 56 defunct finance firms by the Financial Sector Restructuring Authority (FRA) had led to a loss of Bt600 billion.

"The charge clearly identifies people involved ... in the Cabinet and in private firms. I also want the current allegation [against Thaksin] to be taken up by the judiciary to show just how the selling of Thaksin's family shares to Temasek was a national sell-out. Let me say that whoever spread that allegation has the responsibility of proving it. The FRA sale was closer to the definition of a national-assets sell-out: it's a clearer case," he said. He added that the Democrats, media and anti-Thaksin People's Alliance for Democracy were responsible for spreading "malicious" allegations against Thaksin.

The move is not exactly new, however, as Thaksin in December 2001 ordered then-finance minister Somkid Jatusripitak to investigate the FRA, which was blamed for a collapse of Thai assets prices and a worsening of the economic downturn.

Sombat said he would have to study the case before coming to any conclusion.

Meanwhile, Chuan challenged Veera to get the case over with quickly, saying he and others involved had done no wrong and would have been prosecuted long ago if they had.

"It's the [Thaksin] administration coming under suspicion of selling off the country to foreigners that's forced them to come up with a red herring," he said.