Wealthy families backing main parties

With an election expected in the middle of the year, political parties are planning campaigns to woo votes and they need a lot of money to do the job effectively. And we are not talking about vote buying!

All political parties have occasional donors and regular financiers, although larger parties tend to have more of the latter. While many of the larger donors - most of them wealthy families and leading businesses - are proud to be associated with certain political parties, others often prefer their donations to be kept from the public - for fear of possible reprisal if the rival party rises to power.

The ruling Democrat Party - at 65, the country's oldest political party - has attracted many generous donors, particularly over the past two years it has been in power.

Records by the Election Commission show that last year the party received Bt1.38 million in donations from 197 people. Most are regular donors such as Democrat MPs, Cabinet members, executives and ordinary members.

Earlier this month, the party reported to the political party registrar that so far this year it had obtained Bt33.15 million from wealthy families connected to the Democrats, such as the Sophonpanichs (major shareholders of the Bangkok Bank), the Bhirombhakdis (who own the company that makes Singha Beer), the Chaisongkhrams, the Srivikorns, the Lamsams, the Thanadireks and Jirakitis.

There have also been donations of about Bt50 million from many of the country's leading businesses. They include Benchachinda Holding, Yip In Tsoi, Mitr Phol Sugar, and even Advanced Info Service - which was previously owned by the family of fugitive ex-premier Thaksin Shinawatra, the de-facto leader of the Democrats' rival party Pheu Thai.

Some businesses are not just donors; relatives of their owners are in the Democrat Party. These include the Charoen Pokphand Group, Metro Machinery, and Singha Corp. Young members of some of these families are expected to contest the upcoming election as candidates of the main ruling party.

On March 8, the Democrats held a high-profile fundraising event to mark the party's 65 years. The party has yet to report to the Election Commission about the sum raised but early reports put the figure over Bt700 million.

For the Democrats' arch rival Pheu Thai Party - which is expected to fight with the Democrats for the most House seats and the right to form the next government - it has been assured by Thaksin of his full financial backing. However, many wealthy individuals and businesses are ready to give him a hand - although some of them prefer to remain anonymous.

Last year, Pheu Thai got donations of Bt15 million, according to the EC. Among the major donors were wealthy people close to Thaksin, including Virun Tejapaiboon, Ong-art Ua-apinyakul, and Pichai Naripthaphand.

There are only a handful of regular financiers, such as Pongsak Raktapongpaisal and Songkhram Kitlertpairoj, who were key figures in Pheu Thai's "former lives" - Thai Rak Thai and People Power parties, which were both dissolved by court order. Wealthy businessman Paiwong Techanarong, owner of the Bonanza Khao Yai Resort, is also generous to the opposition party - providing his vast resort as the venue for regular gatherings of the pro-Pheu Thai red shirts.

Moreover, there is a group of businesses registered on the stock market, and from the textile and car industries that have contributed financially to Pheu Thai but whose bosses have been reluctant to be identified. They fear being viewed as siding with the party may bring adverse impacts to their businesses. In particular, a car-part business owner reportedly warned Pheu Thai the firm would withdraw support if it was named publicly as a major donor.

Moreover, important hotel businesses like Hyatt Erawan and Siam Intercontinental - both "luckily" escaped arson attacks in last year's riots although they are located near the burnt Central World - have retained strong ties with Pheu Thai.

Meanwhile, the coalition Bhum Jai Thai Party - which is expected to be a deciding factor in the two larger parties' fight for political power - has also attracted much financial backing.

According to EC records, the party got donations of almost Bt10 million last year, compared to as much as Bt35 million in 2009.

Among the generous donors are Chiang Mai Construction - which is owned by the father-in-law of banned politician Newin Chidchob, who is regarded as the party's de-facto leader - Sino-Thai Construction (owned by the family of party leader and Interior Minister Chaovarat Chanweerakul), and King Power.

The party is also close to such businesses as entertainment giant company GMM Grammy and East Water and wealthy figures with political backgrounds such as Somsak Thepsuthin, Sonthaya Khunplume, Sora-at Klinprathum, Suchart Tancharoen, and Teerapol Noprampa - who all are "political comrades" of Newin, who is believed to be pulling strings behind the party.