PM admits government is vulnerable

Prime Minister Abhisit Vejjajiva yesterday admitted to the possibility of his government being short-lived because of the looming legal problem involving questionable shareholdings by many Cabinet members, including deputy premier Suthep Thaugsuban.

Abhisit said that he would treat a possible negative result as a normal political development in line with democratic principles.

Abhisit made his remarks ahead of next week's ruling by the Election Commission (EC) about MPs accused of violating equity rules.

The Democrat Party leader said he had learned that between 20 and 30 party MPs were among those accused of holding shares not allowed by the Constitution, which prohibits public office holders from holding stocks in media businesses and companies that are state concessionaires.

The EC on Thursday ruled to disqualify 16 senators for violating the ban by having equity stakes in enterprises granted state concessions. Its ruling will have to be endorsed by the Constitution Court before taking effect.

The commission is scheduled to issue a similar ruling on ministers and MPs next week.

Abhisit said his government would abide by the outcome of the judicial review but would not remove any disqualified office holders based on the EC decision alone. He also ruled out a Cabinet reshuffle before the judicial proceedings were exhausted.

When asked about his shareholdings, the premier said he had opted not to hold any stocks long ago as he believed shareholdings would pose a problem for him.

"I myself have no equity stake in any companies. But individual ministers have the discretion to hold shares and may have erred without wrongful intent. It's best for politicians to refrain from investing in the stock market," he said.

Meanwhile, Deputy Prime Minister Suthep yesterday insisted that his investment in certain stocks was purely honest and that he was unaware the listed companies were awarded state concessions.

"If this case is brought to the Constitution Court, I will have no choice but to fight the case," Suthep said.

When asked if the matter would undermine the government's stability, as many coalition MPs would be affected, he said the government could do nothing as it was a matter of law.

Meanwhile, Election Commission member Prapun Naigowit said yesterday that the EC based its decision about the 16 senators on the Constitution's Article 265.

"Article 265 directly prescribes the ban for MPs and senators holding equity stakes linked to state concessions before and after assuming office," he said in reference to Thursday's ruling.

He said he expected the EC ruling next week for 28 MPs would be based on the same legal interpretation as the decision on the 16 senators.

Prapun said the majority of EC members made a strict legal interpretation of the ban while the dissenting opinion ruled for acquittal on the ground that the stakes in question did not constitute controlling interests.

He explained that, according to the EC investigation, there were 14 listed companies linked to state concessions. The investigation report excluded shares from Thai Airways International since the national carrier has no monopoly in the market, he said.

Prapun admitted there was intense debate on whether to penalise for equity violations that did not constitute controlling interests. He said he sided with the minority to prescribe no punishment.

He said the National Anti-Corruption Commission once explained the equity rules to lawmakers, saying they did not need to relinquish their stakes in such listed companies as PTT Plc, THAI Airways and Bangkok Expressway.

The NACC said the retail transactions of the equity stakes could not be construed as having control nor influence over the business, he said.

In a related development, Senate Speaker Prasobsuk Boondech said he would spend about a week studying the EC decision before forwarding it to the Constitution Court for a ruling on the case involving the shareholdings of the 16 senators.

The 16 targeted senators were to meet yesterday to discuss about their action in response to the EC decision, some of them said.