The agency has informed the Assets Examination Committee (AEC) about the report it received from the Bangkok Bank's Rattanatibet branch, which was compulsory for transactions exceeding Bt2 million, according to the source.

The suspicious transactions were discovered before news broke this week about Watana's involvement in the scandal. The AEC said on Monday Watana and his accomplices had been implicated for abuse of power and receiving kickbacks in Ua Arthorn Project I.

The case against Watana will hit the previous government of Thaksin Shinawatra. Watana, an in-law of CP Group boss Dhanin Chearavanont, was seen to represent the nepotism involved in Thaksin's selection of his Cabinet members. And the Ua Arthorn project was one of the previous government's populist policies.

Rice-trading company President Agri Trading was found to have withdrawn Bt18 million from the bank branch via 11 cheques on March 15, 2004, the source said.

The firm has been accused of helping Watana launder illicit funds into his accounts. He served as the social development and human security minister in the previous government.

Four days later on March 19, the source said another company, Pastiya Thai, transferred Bt63 million into an account of President Agri Trading - which withdrew the whole amount on the same day.

The Bt63 million was divided and deposited in five bank accounts: two in the name of President Agri Trading; one in the firm's executive's name, one in his wife's name, and one in the name of the firm's car driver, the source said.

Meanwhile, a legal adviser for deposed PM Thaksin Shinawatra said yesterday he believed Thaksin's wife Khunying Pojaman and her brother Bhanapot Damapong would be released on bail after being charged with tax evasion.

Noppadon Pattama said Pojaman and Bhanapot would report to public prosecutors by the deadline on Monday to hear the indictment against them, as recommended by the AEC.

They have been charged with filing false income-tax returns in relation to a stock transaction between them in 2000. The prosecutors ruled that the defendants unlawfully claimed tax exemption.

Following normal legal procedures, the prosecutors will spell out the charges when the pair arrive, then take them to the Criminal Court.

Noppadon said his clients were preparing to file a motion for bail.

Based on the AEC's report, Pojaman and Bhanapot were liable for Bt500 million in unpaid tax. If convicted, they will have to meet their tax liabilities and pay a fine of up to Bt400,000 on top of any time served in jail.

The Attorney General's prosecution team, meanwhile, insisted it would file a complaint against Pojaman and Bhanapot even if they failed to report on Monday, spokesman Attapol Yaisawang said.

If the pair asked for bail, however, the team would not oppose it, he said.

Pojaman and Bhanapot each face a maximum jail term of up to 14 years for tax evasion if they are found guilty.

Budsarakham Sinlapalavan,

Piyanuch Thamnukasetchai

The Nation