Another Battle Lost by Thaksin

The case, in which Thaksin and his son Panthongtae are accused of being the influence behind illegal loans extended to affiliates of the Krisada Mahanakhon Group, had seemed to be going nowhere due to reservations from the public prosecutors. The impasse fuelled suspicion about connections between the fugitive former prime minister and the Office of the Attorney-General.

Last June, the Assets Examination Committee (AEC) submitted more than 50,000 pages to the Attorney-General's Office seeking to indict Thaksin, son Panthongtae, and some former board members of Krung Thai Bank (KTB) over the alleged loan irregularities involving the Krisda Mahanakorn Group. The prosecutors' reservations stalled the case, and when the AEC became defunct and taken over by the National Counter Corruption Commission, it was tabled for a joint review by the sceptical prosecutors and the NCCC.

So, the most significant thing about the latest development is the prosecutors' greenlight, after the joint review found enough grounds and additional evidence to pursue the AEC's case. The review process has been overshadowed by other major political developments including Thaksin's conviction in the Ratchadapisek land case, which, in fact, was a lesser case compared to this one.

The charges involve using political influences to grant massive bank lendings to unqualified recipients already plagued with non-performing loans. Among suspicious activities are:

1. A loan of Bt500-million extended to RK Professional on September 11, 2003.

2. A loan of Bt9.9-billion extended to Golden Technology Industrial Park on Sept 11, 2003.

3. A total of 118.5 million preferred shares worth Bt1.1 billion issued by Krisada Mahanakorn which ended up in KTB's hands saw a big drop in value.

The first complaint was lodged by the Bank of Thailand and some KTB executives were implicated. Later, the KTB, under pressure, lodged own complaint with the AEC against Thaksin but sparing its own executives and officials.

In an initial probe by an AEC sub-committee, 32 people and five companies were found to be involved in the alleged fraud which reportedly cost the state up to Bt4.5 billion.

It might be unnecessary to call this the "last nail in Thaksin's coffin". However, this development only ensures that he will remain on the run, with the chances of getting at least some of the frozen assets back remaining as remote as ever.