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Published on April 22, 2008

The Nation

The move is aimed at determining whether the operations comply with the Foreign Business Act (FBA).

The decision was announced yesterday after discussions about Tesco Lotus's libel suits against Krungthep Turakij senior editor Nongnart Harnvilai, Krungthep Turakij columnist Kamol Kamoltrakul and Jit Siratranont, a former MP who is now vice general secretary of the Thai Chamber of Commerce.

Tesco Lotus is claiming combined damages of Bt1.2 billion. The reports in question were related to the hypermarket operator's rapid growth. They criticised alleged trouble in communities caused by Tesco Lotus's expansion, including traffic problems.

"We believe Tesco Lotus is not after the money," said TJA vice president Wanchai Wongmeechai. "Rather, Tesco Lotus is exploiting the legal system to silence the freedom of the press in presenting facts and criticisms about its business plans and effects on communities. These matters are in the public interest."

The FBA allows a foreign retailer to operate in Thailand through a Thai-registered company. However, foreign interests must not own more than 49 per cent of the company.

The TJA also invites reporters, columnists and Thai citizens facing charges by Tesco Lotus to contact the association for joint discussions on protecting freedom of speech and continuing to criticise under the framework of the Constitution.

The association said Thai journalists viewed Tesco Lotus's damage claim as an action to silence reports on its rapid expansion in Thailand and criticism of its impact on small retailers.

The TJA is also planning a public conference to educate the public on the business operations of giant foreign corporations.