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Published on September 29, 2007

Thanong, who served as finance minister in the Chavalit government before the 1997 financial crisis, said that only three people had known about the devaluation decision beforehand, himself, prime minister Chavalit and Bank of Thailand governor Rerngchai Marakanond.

The AEC source also said Thanong had been asked about his relationship with Thaksin and Shin Corp, to which Thanong said that he had been made a Shin Corp director to help with fund-raising and foreign affairs. He was also quoted as saying that while serving as TMB Bank president, he had approved huge loans for the company.

Thanong, however, refused to answer reporters' questions. He emerged after eight hours and left without saying anything.

Meanwhile, AEC subcommittee chairman Viroj Laohapan said the panel would decide what to do about Thaksin's daughter Pinthongta's fourth no-show yesterday to testify over the Shin Corp share sales.

In a related development, PM's Office Minister Khunying Dhipavadee Meksawan, in testimony before the AEC, said the Transport Ministry had included a clause in the contract saying that the state had to pay insurance to Shin Satellite in case of accident.

Dhipavadee was answering an AEC summons about her approval of a US$33-million (Bt1.13-billion) insurance payment to Shin Satellite for an accident involving the Thaicom 3 satellite when she was permanent secretary of the Information and Communications Technology (ICT) Ministry.

According to what she told reporters before leaving the AEC office, Dhipavadee testified that she had handled the matter with care, appointed a panel of experts to scrutinise the concession contract and followed every point in the contract.

Provision 37 of the contract stipulated that if the satellite needed repair or was damaged the ministry would make insurance payments to Shin Satellite.

She also defended the ministry's decision to alter the contract and reduce Shin Corp's stake in Shin Satellite from 51 per cent to 40 per cent without seeking Cabinet approval, which violates the Public-Private Joint Venture Act 1992.

Dhipavadee said she had sought the Office of the Attorney General's opinion and the office had recommended that the Cabinet decide on the matter since it was a national project. She said she had proposed the matter to the Cabinet for consideration but the Cabinet secretary-general had said the issue did not qualify for Cabinet consideration. She said that afterwards she had been transferred from the ICT to the Culture Ministry.

Dhipavadee said she would not resign in the wake of a move by the National Legislative Assembly to grill the Surayud Cabinet over its members' ethics. She said she would stay on to carry out her duties to the best of her ability.

Budsarakham Sinlapalavan

 The Nation