Yanyong Phuangrach, deputy permanent secretary of the Commerce Ministry, said yesterday the new firm would be an arm of the ministry to promote and distribute agricultural goods overseas. It would also operate domestic trading systems and become involved in the government's intervention programme.

"The new firm should increase income to the ministry and create more value-added components for agricultural goods," he said, adding that the budget of Bt500 million is an estimated amount, which will be used to operate both domestic and international marketing projects.

To set up a joint-venture company, the PWO and the Export and Import Bank of Thailand will hold a 51-per-cent share and allow private companies to hold the rest. Yanyong said setting up the new firm should create accountability and transparency.

Siam Cement Group, Charoen Pokphand Group, Saha Pathanapibul Plc, and companies under whisky tycoon Charoen Sirivadhanabhakdi's management have all expressed an interest.

The setting up of the subsidiary is part of a restructuring of the organisation after it became mired in rumours of graft. Early this year, 11 of its officials were investigated for alleged corruption. The case was closed after its former president was dismissed in April.

Initially, the PWO's board planned to register the company name "Thai Trade International Company (TTI)", but that name is already in use.

The PWO has operated many businesses, such as warehouses, cold-storage facilities and piers, and was responsible for the ministry's pledging programme. Its main task is to stock farm-crop surpluses which would otherwise cause falls in prices.

Yanyong said the new company will become a trader and distributor through management of its own facilities. "It will generate higher income if well managed," he said.

The new company will concentrate on marketing management of products resulting from government initiatives such as One Tambon One Product.

Meanwhile, the PWO will appoint its new president next month.

Yanyong said the board has already selected three candidates from seven applicants and will make a final decision by the end of this month. The successful candidate will be proposed to caretaker Commerce Minister Somkid Jatusripitak for approval.

The three candidates are Pisut Chalakornkul, former managing director of Lenso Paging; Wirat Thuenyuenyong, former candidate for the House of Representatives; and Jeerawat Krongkaew, an executive from private company.

Petchanet Pratruangkrai

The Nation