The National Counter Corruption Commis-sion (NCCC) should consider prosecuting state officials and

former politicians responsible for the 2003 conversion of six telecom concession fees into

excise duty, researcher Somkiat Tangkitvanich told a seminar yesterday.

The research director of Thai-land Development Research Insti-tute (TDRI) said the alleged wrongdoers should face legal action because the conversion had resulted in Bt39-billion damage to two state enterprises, TOT Corp and CAT Telecom Corp.

The telecom conversion was one of the alleged policy-corruption cases cited by the Council for National Security (CNS) for staging the September 19 coup that ousted the Thaksin government.

Somkiat's suggestion came hot on the heels of the NCCC's harsh action against the Revenue Depart-ment, where the director-general and other senior officials are facing civil and criminal lawsuits for neglecting to collect billions of baht in income tax from the Shinawatra family following Shin Corp stock transactions.

According to Somkiat, the Thaksin government converted the concession fees of four mobile-phone and two fixed-line phone companies, including AIS of Shin Corp, into an excise duty of 10 per cent and 2 per cent respectively in February 2003.

The alleged wrongdoing seriously weakened state-owned TOT Corp and CAT Telecom Corp due to the hefty loss of concession fees, though it greatly benefited the private telecom firms as they could deduct the tax from the concession fees.

The Thaksin government, with its various populist policies, was among the beneficiaries due to the direct flow of tax revenue into state coffers.

Originally the Thaksin government proposed to levy 50 per cent excise on mobile and fixed-line phone concessionaires, but it later reduced the rates to 10 per cent and 2 per cent respectively.

Somkiat also accused the former Thaksin government of causing damage estimated at Bt71 billion to the public by granting undue financial support to businesses closely allied with the government.

Such crony-capitalist practises were cited as one of the key risks still hitting the Thai economy nearly a decade after the 1997 Asian financial crisis.

At yesterday's year-end TDRI seminar, Anand Panyarachun, chairman of the TDRI Foundation, said: "It would be wrong if we said that we had not learnt anything from the crisis, but the question is: have we learnt it adequately? For some of the die-hard behaviour and practices are still around."

About 600 economists, social activists and community leaders yesterday attended the annual seminar entitled "Close on a Decade after the Economic Crisis: Lessons and Reforms."

Anand, a former premier, expressed concern about crony capitalism, which he said had become widespread again in the past four or five years.

He also wondered how the current Surayud government could apply HM the King's initiatives on a sufficiency economy to correct the past mistakes.

Bank of Thailand governor Tarisa Watanagase warned that global markets had become more volatile over the past decade so the country should carefully manage its risks to prevent another economic crisis.

"We should not let down our guard. We need to pay more attention to risk management," she said.

To strengthen the financial sector, the government will continue its liberalisation programme in proper sequence to expose local financial institutions to the global market and competition, she added.

Kothom Areeya, chairman of the National Economic and Social Advisory Council, said the challenge facing Thailand was how the country could return to full democracy without losing its momentum.

Chalongphob Sussangkarn, president of the TDRI, suggested the government put in place laws that would prevent future governments from initiating "risky" projects.

Wichit Chaitrong,

Anoma Srisukasem

The Nation