Ministry denies 'cover-up' over Burma loan details

The Foreign Ministry was in a defensive mode yesterday following a claim that senior officials were covering their tracks to distance themselves from the Thaksin government's controversial loan to Burma.
Officials at the ministry have allegedly hidden and reclassified documents related to loan funds extended to Burma by the Export-Import (Exim) Bank, according to a former ambassador to the United Nations Asda Jayanama. He made the allegations on ASTV on Wednesday. The officials' alleged cover-up came after news the junta-installed Asset Examination Com-mittee (AEC) would scrutinise suspect and allegedly corrupt deals undertaken by Thaksin's administration. Officials at the ministry who have close connections to former minister Surakiart Sathirathai, tried to cover some irregularities due to fears of being dragged into the case, according to an official who spoke on condition of anonymity. But ministry spokesman Kitti Wasinondh rejected the allegation, saying they were aware of no such acts at the ministry. No official could remove any document without permission, he said. However, the ministry's permanent secretary, Krit Garnjana-Goonchorn, had told officials to prepare a report on relevant issues for when the new minister is appointed, Kitti said. "But the instruction was not made for the purpose of hiding anything on any particular projects," he said. An official at the ministry said officials who oversee Burma affairs were ordered to remove a number of exchange notes between the ministry and the bank over a Bt600 million loan for the Burmese government. The key document contained a recommendation that the bank extend the loan, he said. The loan was extended during Thaksin's government for Rangoon to buy the broadband satellite system from Shin Satellite, a firm previously owned by the Shinawatra family. The project was proposed as part of the Bt4-billion credit line Thailand extended to Burma to help develop its infrastructure, with the condition that materials be purchased from the Kingdom and loans be repaid within 12 years at 3 per cent interest. The loan project has been scrutinised since 2004, when the chairman of the Senate Foreign Affairs Committee Kraisak Choonhavan, summoned an executive of the bank to explain various irregularities in the project and possible conflict of interest in Thaksin's administration. Krit was appointed as permanent secretary at the Foreign Ministry in the middle of 2004, long after the Burma loan was approved, spokesman Kitti said, so Krit had nothing to worry about in regard to the Burma project. Thus, it was unnecessary for him to instruct officials to hide or remove any document related to the project. Supalak Ganjanakhundee The Nation
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