The Council of State has indicated that former prime minister Thaksin Shinawatra was authorised to oversee the Financial Institutions Development Fund (FIDF) as it is considered a state agency, a source from the Assets Examination Committee (AEC) said yesterday.

The FIDF's status has bearing on the legality of a purchase of land from the institution by the former premier's wife, Khunying Pojaman. Article 100 of the Counter Corrup-tion Act prohibits state officials or their spouses from engaging in contractual agreements with state agencies under their supervision.

The source said the AEC team investigating the Bt772-million land deal had been reviewing information received from related agencies, which included a document signed by the Council of State's former secretary-general Chaiwat Wongwat-tanasan in May 2000 indicating the FIDF's status as a government organisation established under special laws. It was considered a state enterprise as it was a legal entity established by the government for business purposes.

The FIDF was also considered a state agency because it is under the Bank of Thailand (BOT), which is a state agency, the source said. The prime minister is the highest official to watch over state agencies.

AEC chairman Nam Yimyaem is to ask the National Counter-Corruption Commission (NCCC) whether it will follow the previous commission's interpretation of Article 100, which was that it applied only in the case of corruption or irregularities, the source said.

The NCCC's interpretation of the Article 100 of the Counter Corruption Act might affect the AEC's investigation into the land purchase, the source said.

However, Udom Fuangfoong, an AEC member investigating the deal, said the committee would take other agencies' opinion on the case into consideration, but these would not affect its investigation or conclusions.

He said the AEC would also seek information from former prime ministers Banharn Silapa-archa, Gen Chavalit Yongchaiyudh and Chuan Leekpai regarding the deal.

The Pojaman land purchase had seen the most progress among the AEC's various investigations, he said.

Udom said the AEC would continue investigating whether the Government Lottery Office's spending of revenue from the two- and three-digit lotteries was legal, regardless of whether the lotteries themselves were legal.

"Police Maj-General Surasit Sangkhapong, former director of the Government Lottery Office, has said the GLO made losses nine times from issuing these lotteries. He said he would find out the actual amount of the loss and inform the AEC later," Udom said.

Meanwhile, the AEC will meet today to determine whether Pojaman's brother Bhanapot Damapong should be taxed for the Shin Corp shares he received from his sister as a gift. Bhanapot might have to pay tax of more than Bt1.66 billion plus fines over the transaction.

The AEC will also consider the appointment of a subcommittee to investigate alleged irregularities in the procurement of fire trucks and fireboats for Bangkok city.

Nerisa Nerykhiew

The Nation