Commerce Ministry officials involved in the investigation of Kularb Kaew Co Ltd last week reiterated their belief that the company was a nominee, and that a ministry decision reflected this.

"The process of passing on the investigation results for further study by police is initial proof that the company is a nominee," a high-level official said.

Kularb Kaew is believed to be a nominee of Temasek Holdings, which in January took over Shin Corp. Kularb Kaew's stake in Shin Corp has helped the latter's foreign ownership remain below the statutory limit of 49 per cent.

According to the official, the coup paved the way to wrap up the months-long investigation. Without the military intervention, the case would have dragged on as a result of political interference. Shin Corp was formerly the flagship business of ousted prime minister Thaksin Shinawatra's family.

The Business Development Department started investigating the case in February and was finished in July. The results were withheld due to political pressure. Then the ministry set up a second investigation team, chaired by Yanyong Phuangrach, deputy permanent secretary of commerce, apparently to prolong the investigation. Following the coup, the ministry said it would pass the results of its first investigation to police.

The official said that before the coup, former Cabinet members and members of parliament from the Thai Rak Thai Party called the officials involved and ordered the investigation team to delay the announcement of their findings.

"We are officials and we have to base our work on information and evidence. We've not taken sides but have adhered to righteousness and principles," the official said, hinting at the discomfort they felt under political pressure.

Another source commented that if the first investigation results by the department had been announced in July, the case would have been sent to court.

The department's preliminary probe found that Kularb Kaew violated Thailand's alien business law. If the police uphold the results, the Shin empire could fall apart, as its subsidiaries own concessions or licences from the government - from a television station (iTV), a mobile-phone service provider (Advanced Info Services), a satellite company (ShinSat), through to a commercial aviation firm (AirAsia).

"Kularb Kaew has breached the alien business law, but the police will decide if it should be charged," the source said.

According to article 36 of the alien business law, any firm or individual breaching the regulations is subject to a maximum three-year prison term or Bt1 million in fines, or both. There should also be more stringent conditions to prevent the country from falling into foreign ownership and to make it harder for people in authority to take advantage of legal loopholes, the source said.

Achara Pongvutitham,

Petchanet Pratruangkrai

The Nation