The Supreme Admi-nistrative Court agreed yesterday to prosecute a petition by consumer groups against the privatisation of the Petroleum Authority of Thailand (PTT) and ordered three defendants, including caretaker Prime Minister Thaksin Shinawatra, to submit their explanations within 30 days.

The court also ordered all parties involved to refrain from commenting on the case to avoid interfering with the legal proceedings.

The order followed the filing of a petition by several consumer groups on August 31 that accused Thaksin, caretaker Energy Minister Viset Choopiban and the Cabinet of failing to follow the proper process for privatisation when privatising PTT in 2001. The groups were encouraged to push the case after successfully overturning an earlier privatisation plan for Electricity Generat-ing Authority of Thailand (Egat).

Sairoong Thongplon, manager of the Federation of Consumers Organisation of Thailand, cheered the court's decision to prosecute the case.

"We're confident that our evidence, which we have been gathering for four of five months, is sound. We're confident that the government has failed to follow through with the privatisation process," she said.

Sairoong said once the three defendants submit their explanations to the court, the plaintiffs will consider how to strengthen the charges.

Unlike in the Egat case, in which the initial public offering was halted in November ahead of the hearing, the consumer groups did not ask the court to stop any transaction involving PTT.

"However, in the future, if villagers complain about PTT's land expropriation, they could ask for a court order to have the transaction frozen. Or who will be responsible for the possible damage?" she said.

In their petition, the consumer groups asked for the nullification of two laws that supported the PTT privatisation. In support of their case is the argument that members of the committee charged with setting up PTT Plc were illegitimately appointed. Both Manoo Liewphairote and Viset Choopiban held shares in PTT while sitting on the committee.

Moreover, they said, the public hearing process was not properly carried out, which is against the Corporatisation Act. In the last count, the groups argue that PTT, though now a private company, still holds some assets that belong to the entire nation.

A lawyer who asked not to be named said the nullification of the two laws would lead to a share buy-back by PTT.

"The question of the price the shares should be repurchased at is problematic because shareholders could seek extra gains. But it looks certain that PTT will need to set aside a provision for this purpose," the lawyer source said.

Earlier this week, caretaker Finance Minister Thanong Bidaya, Stock Exchange of Thailand chairman Vijit Supinit and SEC secretary-general Thirachai Phuvanart-naranubala warned that if the court ruled against the privatisation, PTT would have to buy back all of the shares it had sold, which would place a heavy burden on public finances.

Brokerage houses said in research notes that the buy-back would have a negative impact on the overall sentiment in the Stock Exchange of Thailand. They also said they expected the court to consider other possible economic effects arising from the case.

It is estimated that PTT would need Bt200 billion to buy back the shares it has sold, though the company raised only Bt28 billion from the initial public offering in 2001. PTT offered IPO shares at Bt35 apiece, but its share price ended yesterday at Bt238.