The Commerce Ministry-appointed committee investigating Kularb Kaew has expanded its inquiry to include Aspen Holdings, Cedar Holdings and Cypress Holdings, which have all been linked, directly or indirectly, to the Temasek Holdings-Shin Corp deal.

"The investigation will cover Aspen, Cedar and Cypress. We are looking into the shareholding structure and management control," said Yanyong Phuangrach, the ministry's deputy permanent secretary and chair of the committee.

"We're looking into whether the investment was for themselves or for others. If the investment was financed through loans, that's acceptable. And we're going to determine whether there are any agreements to represent a foreigner [in the deal]," he added.

Yanyong said that if Kularb Kaew proved to have been a nominee, the committee would consider whether the Shin takeover should be nullified.

Following the committee's first meeting, Yanyong said the duration of the investigation would depend on the evidence, although the committee would try to keep its original time frame of two months. The committee will reconvene at least once every two weeks. Once it has come to a conclusion in the investigation, it will be up to other relevant agencies to take action.

Before the end of next week, the committee will have collected all of the relevant information and question representatives of the involved parties, including the Business Development Department and the parties that called for the ministry to investigate the deal. The committee will ask the Finance Ministry to look into tax issues and financial transactions, and the Securities and Exchange Commission (SEC) will consider whether any transactions broke any securities laws.

The three parties that called for the investigation of Kularb Kaew are the People's Alliance for Democracy, the Democrat Party and a Senate committee.

Caretaker Commerce Minister Somkid Jatusripitak said he had asked his deputy, Preecha Laohapongchana, to ensure that the investigation is fair for all parties and publicly reveal as much information as possible for the sake of transparency.

Committee members are Thirachai Phuvanatnaranubala, secretary-general of the SEC; Rangsan Sriworasat, deputy comptroller-general; Achporn Charuchinda, deputy secretary-general of the Office of the Council of State; and Supaporn Jaionnom, deputy director-general of the Department of Business Development. The panel's secretary is Kajit Sukum, director-general of the Department of Intellectual Property.

Caretaker Finance Minister Thanong Bidaya yesterday said the Alien Business Law's 49-per-cent cap on foreign shareholding in local companies had discouraged foreign investment in Thailand and prompted nominee use.

"Strong demand from foreign investors who want to invest in Thailand has increased the use of nominees. They need to have a controlling stake in local companies, but they cannot do so, because their shareholdings are limited to 49 per cent," he said.

Thanong said many potential foreign investors had asked him to raise the cap. He said doing so would increase foreign investment, because foreign investors would be able to have a bigger say in the operations of the companies in which they had bought shares.

Thanong said that as far as he knew, there were many Thai companies owned by the nominees of foreign shareholders.

The Finance Ministry already sent representatives to participate in the investigation.

Kularb Kaew, Aspen, Cedar and Cypress are related companies. Cypress owns a 27.7-per-cent stake in Kularb Kaew, while wealthy Thai businessman Surin Upatkoon owns 68 per cent. Pong Sarasin and Suphadej Poonpipat own a combined 4.25 per cent. Meanwhile, Kularb Kaew owns a majority stake in Cedar, which owns 51.98 per cent of Shin. Temasek subsidiary Aspen owns 44.14 per cent of Shin.

The transaction, which took place in January, has raised questions. In addition to the questions surrounding Kularb Kaew's status, there is now an investigation into officials from the Revenue Department in regard to the tax issues governing the sale of Shin Corp shares by Caretaker Prime Minister Thaksin Shinawatra's children - Panthongtae and Pinthongta. Neither one paid taxes on the sales of their stakes in the family company.

A source in the Auditor-General's Office said two Revenue Department officials had been given subpoenas. Department director-general Sirote Swasdipanich is set to answer questions next Tuesday.

The source said the Revenue Department must also collaborate with the Auditor-General's Office by providing tax information related the Temasek deal.

"I don't have to make any orders, because it's Revenue Department's duty to provide such information to the Auditor-General's Office," the source said.