The committee was unable to agree over the legal technicalities involved, a panel member said.

Kaewsan Atibodhi said there were "problems involving the complexity of relevant laws".

This prevented the AEC establishing the subcommittee.

According to a source, AEC members yesterday raised legal questions regarding Article 100 of the National Counter Corruption Act. This prohibits government officials - including prime ministers - and their spouses from entering into or having interests in contracts made with state agencies under their authorisation.

Some panel members questioned if Thaksin and his wife Khunying Pojaman had violated this provision, and if so, could the AEC investigate the matter if no complaints had been made, the AEC source said.

A committee member looking into the land transaction, Udom Fuangfung, will report on the legal issues next week, the source said.

The transaction involves Pojaman's Bt772-million purchase in 2003 of four plots in the Ratchadaphisek Road area.

The land was put up for auction by the Bank of Thailand's Financial Institutions Development Fund.

Thaksin's chief lawyer Noppadon Pattama insists the deal does not breach Article 100 because the ex-prime minister did not directly control the fund.

The Udom subcommittee has completed its investigation into the controversial deal.

Meanwhile, the AEC yesterday agreed to investigate a Cabinet resolution made during Thaksin's tenure that issued an executive decree that required mobile-phone operators to pay excise tax instead of concession fees, Kaewsan said.

Some considered the resolution favoured a particular company.

The AEC also rejected a petition filed by a lawyer for Pojaman opposing the appointments of Sak Korsaengruang and Klanarong Chantik as members of a sub-committee investigating a tax-free transfer of shares worth Bt738 million by Pojaman to her brother Bhanapot Damapong in 1997.

Budsarakham Sinlapalavan

The Nation