A murky stock deal between Ample Rich Investments Co and two of Prime Minister Thaksin Shinawatra’s children has become a political hot potato for the Finance Ministry, the Bank of Thailand, the Securities and Exchange Commission, and the Stock Exchange of Thailand.

“I don’t know, I don’t know,” said Finance Minister Thanong Bidaya in response to a question whether the Finance Ministry would probe the suspicious deal between Ample Rich Investment – allegedly a nominal offshore company of Thaksin – and Pinthongta Shinawatra and Panthongtae Shinawatra.

Last Friday, Ample Rich, registered in the British Virgin Islands and headquartered in Singapore, sold 164,600,000 shares in Shin Corporation to Pinthongta and another 164,600,000 shares to Panthongtae for Bt1 apiece.

The following Monday, Pinthongta and Panthongtae resold their newly bought stocks to Tamasek Holdings of Singapore for Bt49.25 a share as part of a Bt73.2-billion takeover of Shin Corp. Pinthongta and Panthongtae earned a profit of Bt48.25 a share on this deal, totalling tax-exempt proceeds of Bt7.94 billion each.

Financial sources questioned yesterday whether the transactions had violated the securities law relating to insider information, or Article 241.

“They had to know the deal would take place on January 23, otherwise they would not have bought the shares on January 20 from Ample Rich,” a financial source said.

In answer to a request from the SEC, the Stock Exchange of Thai-land yesterday confirmed there had been no transaction conducted on the exchange between Ample Rich and Pinthongta and Panthongtae as had been reported by Karnjanapha Honghern, a secretary for Khunying Pojamarn Shinawatra.

On Monday January 23, Karnjanapha informed the SEC that Ample Rich had sold 164,600,000 shares of Shin Corp to Pinthongta and Panthongtae each, totalling 392,200,000 shares. She also acted on behalf of Pinthongta and Panthongtae by informing the SEC that the two shareholders had bought the stocks from Ample Rich through the Stock Exchange on Friday January 20.

As it has subsequently transpired, however, there is no report at all about the transaction between Ample Rich and Pinthongta and Panthongtae allegedly conducted on the exchange either through the foreign board or through big-lot transaction.

“The SET has told the SEC that there has been no transaction of this deal. It is the responsibility and authority of the SEC to investigate [Karnjanapha’s claims] further,” a SET source said.

Chalie Chanthanayingyong, an assistant secretary-general of the SEC, said the SEC was looking to the matter.

Questions have also been raised about the ownership of Ample Rich.

Experts cannot help wondering if it is owned by the Shinawatra family. Financial sources note that no other explanation would account for the highly questionable decision by Ample Rich to offload its Shin stocks to Pinthongta and Panthongtae at a mere Bt1 per share just when the stocks were trading at Bt47-Bt48.

However, Thaksin’s declaration of his assets to the National Counter Corruption Commission does not mention Ample Rich on the list of his assets.

Apparently, Thaksin set up Ample Rich Investments Ltd on 12 April 1999 in the British tax haven of the Virgins Islands ahead of his plans to enter politics in full force.

On 11 June the same year Ample Rich Investments Ltd bought 39,260,000 shares, about 10.97 per cent, of Shin Corp Thaksin 1999 through big-lot transaction at the Stock Exchange of Thailand. There was no evidence that Thaksin received any money from selling the big-lot stocks to Ample Rich.

Boonklee Plangsiri, chief executive of Shin Corp, notified the Stock Exchange that there would be no change in the ownership structure of Shin Corp with Thaksin’s reduction of his stake from 23.75 per cent to 11.88 per cent. The reason was that the balance of 11.88 per cent had been transferred to Ample Rich Investments, which was fully owned by Thaksin, Boonklee explained in his notification to the Stock Exchange.

The Ample Rich transaction was publicised after the deal had been done, raising suspicions that Thaksin’s son and daughter had taken advantage of inside information and violating market rules. The issue was being investigated by the SEC, Chalie said on Thursday.

Korn Chatikavanij, a Democrat MP, said he wondered how Thaksin had managed to siphon money out of the country in the first place in order to set up Ample Rich in the British Virgin Islands. Korbsak Sabhavasu, another Democrat MP, called on banking authorities to investigate the cash flow of Ample Rich.

When MR Pridiyathorn Devakula, the central bank’s governor, was asked about the allegation, he replied: “I don’t know because it happened before my tenure.”

According to central bank regulations, a commercial bank may execute a transaction worth up to US$10 million for a client who wishes to invest in more than 10 per cent equity of a foreign company. If the transaction is more than US$10 million, the client must get special permission from banking authorities.

This rule is imposed in order to manage capital movements, preventing them from affecting the Thai exchange rate.

Meanwhile, Krirk Vanikkul, assistant central bank governor, said it was not the duty of the central bank to trace the flow of money in the Shin deal. If this were to be done, it would be the responsibility of the Money Laundering Office or the Revenue Department, he said.

Anoma Srisukkasem,
Wichit Chaitrong
The Nation