• 
• 

Published on December 4, 2007

Matchima Thipataya Party leader Prachai Leophairatana's hope of becoming the next prime minister was hit hard by yesterday's ruling by the Criminal Court, which found him guilty of violating stock-market regulations and sentenced him to three years in jail.

Election Commissioner Prapun Naigowit, citing the Constitution, said Prachai was now disqualified from becoming a Cabinet member, but was still able to run for an MP's seat in the December 23 election.

Article 174 of the charter prohibits anyone who serves a prison term from assuming a Cabinet post within five years of their being released from jail. It excludes offences committed unintentionally and people who receive light punishments.

Prapun said, however, Prachai could still contest the election as long as he was not jailed.

If a candidate is allowed bail by a court, he or she can continue political activities, he explained. And the candidate can still become an MP if elected, until he or she is finally receives a jail sentence by the Supreme Court.

In its ruling, the Criminal Court found TPI Polene Plc (TPIPL) and Prachai guilty of violating the Securities and Exchange Act of BE 2535. TPIPL was fined Bt6.9 billion and Prachai sentenced to a three-year jail term without probation.

The court found that Prachai, the company's founder and a major shareholder, had released sensitive information about TPI Polene ahead of its Bt11.1-billion share offering in January 2004. He was the company's chief executive and debt plan administrator at the time.

TPI Polene stock was temporary halted from trading yesterday afternoon and the suspension will remain until the company clarifies impacts from the verdict to the Stock Exchange of Thailand.

The court ruled in favour of public prosecutors, who said Prachai and his stockbroker Chienchuang Kalayanamitr had conspired to mislead the initial public offering in relation to the valuation of TPI Polene at Bt91 billion, which amounted to Bt89 per share. Prachai did not step forward to clarify the questionable valuation.

Chienchuan also received a three-year jail term. TPIPL was fined Bt6.9 billion.

Following the conviction and sentencing, Prachai and co-defendant Chienchuang sought and received temporary release on bail of Bt300,000 each.

Prachai posted Bt1 million in treasury bonds as collateral, while Chienchuang put up Bt300,000 in cash.

Prachai emerged from the verdict session teary-eyed and said his political career faced a trying test.

"The verdict is a hurdle I have to overcome - as a politician I have to withstand friction and pressure," he said, vowing to appeal and overturn the guilty verdict.

While Prachai was awaiting a review of his bail application, Election Commission chairman Apichart Sukhagganond said an election candidate would be disqualified if imprisoned.

"The crucial issue for Prachai is whether he has served a jail term - just one day in jail would remove him from the race," he said.

Apichart said Prachai could be disqualified if his bail application was delayed and he had to spend a night in the remand detention centre.

Prachai narrowly avoided that - he was granted bail in the afternoon.

Matchima Thipataya secretary-general Anongwan Thepsuthin played down the impact of Prachai's legal woes.

"I don't want anyone to look at my party leader in a negative light because this might translate into sympathy votes," she said, alluding to precedents that embattled party leaders often staged a comeback.

Anongwan said the legal case started long before Prachai entered politics and was not linked to his party leadership.

"The judicial review has not been exhausted and Prachai is determined to fight his case," she said, dismissing speculation he may be forced to step down.

"Party members have not talked about the verdict and are of the opinion Prachai is still qualified to lead the party and remain in the race," she said, noting that party legal advisers were checking to ensure he fully complied with election laws.

Attayuth Butrsripoom,

 Kesinee Taengkhieo

 The Nation