Ousted premier Thaksin Shinawatra ordered the Foreign Ministry to help Burma get an additional Bt1-billion loan from the Export-Import Bank of Thailand (Exim Bank) despite the ministry's strong objection, Bt300 million of which might have been used to buy equipment from his telecom empire, former foreign minister Surakiart Sathirathai testified yesterday.
Surakiart, who was foreign minister in the Thaksin government from 2001-04, told the Supreme Court that Thaksin personally intervened in the total Bt4-billion loan deal with Burma back in 2003-04.
Surakiart and graft-buster Klanarong Chantik yesterday testified before the court to wrap up the prosecution's case to seize Bt76 billion from Thaksin and his former wife, Pojaman.
In cross-examining Surakiart, the defence surprisingly asked if he had knowledge of Burma using Bt300 million of the loan to buy equipment from ShinSat.
It was unclear why the defence raised the issue when it could reflect poorly on Thaksin.
Surakiart replied that he was only aware of such a purchase during the investigation by the Assets Examination Committee.
The former premier has been accused of hiding his assets illegally and abusing his office by implementing at least five government measures to benefit his family's vast shareholdings in Shin Corp, which was eventually sold to Temasek Holdings of Singapore in 2006.
The court yesterday asked for more documentary evidence and witnesses for two more hearings, scheduled for January 12 and January 14.
In his testimony Surakiart said he recalled that Burma's foreign minister, in October 2003, had officially asked for a low-interest Exim Bank loan of Bt3 billion to buy machinery, building materials and other products from Thailand.
Later on, Surakiart said, Burma sought an additional US$24-million (Bt798 million) credit line to develop its telecom infrastructure.
"As the foreign minister, I raised my objection because the government could face criticism due to the fact that the Shinawatra family was a major shareholder of Thailand's telecom giant [Shin Corp].
"At the time, several countries had also imposed trade sanctions on Myanmar [Burma]. Initially, there was no reaction from PM Thaksin until Myanmar's officials asked Thai counterparts at a regional meeting in Phuket if it's possible to increase the loan from Bt3 billion to Bt5 billion."
"In writing, Myanmar said it would also want to buy asphalt and building materials from Thailand. Afterwards, PM Thaksin asked the Foreign Ministry about its position. I said I'm against it.
"Then, PM Thaksin suggested that we should meet half-way. Myanmar had asked for Bt5 billion so we should give them Bt4 billion. That's the deal," recalled Surakiart, who was also deputy premier in the final year of the Thaksin government.
Meanwhile, Klanarong, a former member of the Asset Examination Committee, told the court there were at least five policy measures executed during Thaksin's tenure which caused public damage of Bt70 billion.
First, state-owned TOT lost a big chunk of revenue when the Thaksin government issued an executive decree to convert the telecom concession fees into an excise tax.
Second, TOT lost an estimated Bt60 billion in revenue after a concession contract with Advanced Info Service (AIS), a unit of Shin Corp, was amended to reduce the concession fee from a progressive rate of 20-30 per cent of revenue to a flat rate of only 20 per cent.
Third, the telecom concession contract was amended to help AIS reduce its investment requirement by Bt10 billion, thus boosting its profits.
Fourth, the satellite concession contract was amended to help ShinSat, another unit of Shin Corp, make money from the iPSTAR satellite rather than investing in a back-up satellite.
Fifth, state-owned Exim Bank was ordered to provide the Bt4-billion loan to Burma to buy services from ShinSat.
Altogether, the government's measures helped boost the share price of Shin Corp and benefited its major shareholders, he said.
Thaksin insisted last night that he was unfairly charged of being "unusually wealthy" by the post-coup Assets Examination Committee and said he had some Bt60 billion in assets before entering politics many years ago.
In his weekly Internet-based radio broadcast, he said the value of Shin Corp shares held by his family rose and fell naturally, without his political influence.
Meanwhile Thaksin insisted last night that he was unfairly charged of being "unusually wealthy" by the postcoup Assets Examination Committee and said he had some Bt60 billion in assets before entering politics many years ago.
In his weekly Internetbased radio broadcast, he said the value of Shin Corp shares held by his family rose and fell naturally, without his political influence.
