Latest development

August 1: The Assets Examination Committee yesterday authorised its subcommittee to indict ousted premier Thaksin Shinawatra for alleged graft and abuse of power relating to the government-sanctioned lending to Burma in 2004

May 28: A sub-panel of the AEC recommended that Thaksin and others are probed over an allegation that the bank increased the amount of the loan granted by Exim bank from Bt3 billion to Bt4 billion to favour companies closely linked with the Thaksin government.

Thaksin would be investigated to determine whether he violated articles 152 and 157 of the Criminal Law for malfeasance in exploiting his position for personal gain.

Background

In 2004, the Thaksin government gave the nod to open a Bt4billion credit line at 3percent interest for Burma to improve its infrastructure and telecom sector. The condition for the loan to be repaid in 12 years was that Burma purchase materials from Thailand’s telecom equipment suppliers.
Approval of the credit line has been said to favour Shin Satellite, the firm then partly owned by Thaksin’s family. Burma chose ShinSat to be a major supplier to its Bt600million broadband satellite telecommunications project.

The AEC team has investigated the criteria for loan disbursement and found they favoured certain companies for improper spending. The investigators also disagree with charging interest at the concessionary rate of 3 per cent when the actual rate was 4.5 per cent.