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Published on September 27, 2007

Dhipavadee Meksawan, when permanent secretary of the ICT Ministry, and Surapong approved a US$33 million (Bt1.13 billion) insurance payment to Shin Satellite for an accident involving the Thaicom 3 satellite.

The money should have gone to the ICT Ministry as the satellite is regarded as a state asset, an anonymous source said.

The Assets Examination Committee (AEC) yesterday summoned Surapong to answer whether his decision violated the Public-Private Joint Venture Act 1992.

Surapong said he had requested the Office of the Attorney General to decide the insurance payment, but the office said the ministry should seek the Cabinet's decision.

Then Cabinet secretary-general Bowornsak Uwanno rejected his proposal, saying it was not a matter that needed Cabinet approval.

The ICT ministry had the right to decide, Surapong quoted Bowornsak as saying.

Asked why the insurance payment was paid to Shin Satellite and not to the state, since Thaicom Satellite belonged to the state, Surapong said the contract stated that if there was an accident to the satellite, the state would receive the insurance compensation - which must then be given to the concessionaire to buy a new satellite.

Surapong was also questioned why the Thaksin government issued the excise tax law.

He reasoned that the government did not want part of the income that the private sector paid to state enterprises going to the stock market, as the CAT and ToT Plc were being listed. The state still received the concession fee but transformed it into excise tax. As a result, neither agency would be adversely affected by the law.

He was also asked about the ministry's decision to alter the contract to reduce the share ownership of Shin Corp in Shin Satellite from 51 per cent to 40 per cent without seeking the Cabinet's approval.

Surapong said the reason the contract stated that Shin Corp must have 51 per cent was to give the company an obligation to push for the establishment of Thaicom. When Shin Sat was listed on the stock market, Shin Corp sought the reduction of shares, but maintained its commitment to push for the satellite project, he said.

Meanwhile, the  AEC yesterday allowed Bhannapot Damapong to postpone his testimony over his request to the AEC to unfreeze his Bt20 billion to December, citing insufficient time to gather documental evidence.

Budsarakham Sinlapalavan

 The Nation