Sources claim that the Business Development Department, which was the first agency to look into the contentious Bt73-billion sale of the Shinawatra family's Shin Corp shares to Singapore's Temasek Holdings, concluded that Thailand's Kularb Kaew purchased Shin Corp shares on behalf of Singapore's Temasek Holdings. This would mean that Kularb Kaew should be considered a foreign company and not entitled to the same treatment as Thai companies.

The Commerce Ministry had appointed deputy permanent secretary Yanyong Phuangrach to further investigate the case even though it had already received the findings of the Business Development Department's investigation. The ordering of a second investigation was seen as a delaying tactic by the now ousted government of prime minister Thaksin Shinawatra.

After Tuesday's coup, officials are now facing pressure to finalise the findings on the Kularb Kaew case as it was the tax-free sale of Shin Corp that sparked Thaksin's downfall.

Karun said the ministry would also decide next week whether to pass on the department's findings to the police. He also said that the investigative team of deputy permanent secretary Yanyong was to remain intact and that he had asked Yanyong to advise on whether further investigation was necessary.

Yanyong said he would respond to Karun's request on Monday, after which he would await Karun's orders.

Director-general of the Business Development Department Orajit Singkalavanich, who headed the initial investigation, said the department was ready to pass on its findings to the police.

She said the department could give evidence as to whether Kularb Kaew had breached the Foreign Business Act but it could not pass judgement. Orajit thought it likely that the police would be given the case next week, adding that the department would be willing to assist them if needed.

Previously, a high-level source at the ministry who was involved in the department's investigations said there were many unanswered questions surrounding Kularb Kaew that the department had earmarked for whoever investigated the case next.

"We have no authority to point out whether Kularb Kaew is a proxy of Temasek Holdings. A final judgement will have to be made by a court after considering our remarks," said the source, adding that some of Kularb Kaew's financial transactions and sources of capital investment might have breached the Foreign Business Act.

Petchanet Pratruangkrai

The Nation