FM Nitya dismisses allegations of business stake

Matichon online reported earlier that Nitya held a 25 per cent of stake in Piyabutra Plt. This would go against the 2007 Constitution which prohibits officials from holding a business stake of over five percent.

The Constitution does not apply to the current Cabinet members but critics called for resignations on the grounds of higher morality and many ministers have quit their positions, including Nitya's deputy Sawanit Kongsiri.

Piyabutra was set up by the Pibulsonggram family in 1975 with registered capital of Bt100,000 and was dissolved in 1994 as four out of five shareholders had passed away.

Nitya's cousin Pradap Pibulsonggram, a deputy permanent secretary of the Foreign Ministry, informed the Commerce Ministry's Business Development Department about the dissolution in 1994.

"I have never realised the company retained its legal identity as the dissolution made by Khun Pradap was not completed," Nitya told reporters accompanying him to the US. 

"On top of it, I have never received any benefits from the company," he said.

According to Commerce Ministry regulations, a company which fails to submit financial reports for three years will be removed into the inactive category.

Piyabutra has no financial records in the Commerce Ministry since 1999.   Actually, the company had not been active years earlier but the Commerce Ministry has used computers to record business data in 1999 so that's why the last record was in 1999, an official said.

Nitya said he reported his status to Prime Minister Surayud Chulanont who said the case was nonissue.

by Supalak G Khundee

The Nation, Washington DC