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http://www.hamline.edu/apakabar/basisdata/2001/08/03/0079.html globe
Asia Times Online [LINK]
August 4, 2001 atimes.com
[INLINE] Southeast Asia
Thaksin absolved, markets rejoice
By Tony Allison
BANGKOK - The Sword of Damocles that has been hanging over the head of Thai Prime Minister Thaksin Shinawatra since he assumed office in
January was lifted on Friday with the Constitutional Court acquitting
him of charges that he concealed assets while serving in a previous
government. Court President Prasert Nasakul said that the 15 judges voted eight to seven in Thaksin's favor, finally ending the threat of him being barred from politics for five years had he been found guilty. He now
has three-and-a-half years of his term left to run with the most
stable government in Thai democratic history.
Shares prices on the Stock Exchange of Thailand (SET) closed sharply
higher on the news, led by gains in companies connected with Thaksin,
a multimillionaire former telecom tycoon. The SET Index closed up
12.72 points or 4.19 percent at 315.95, off a low of 304.87 and a high
of 316.62.
An ABN AMRO Asia Securities official said the market rose sharply with continued heavy buying from the first session after the Constitutional
Court ruling. "Shares related to Thaksin saw sharp gains, like Shin
Corp and Advanced Info," the official said, adding that next week the
market could see a mild correction as the verdict could only support
the market up to a point, while other negative factors continue to
overhang it.
Government spokesman Yongyut Tiyapairat told a local television
station that the verdict had cleared the uncertainty hanging over
Thailand. "Today, his chance to work for the nation has been extended
and he will accelerate all his pledges and policies and their
implementation," he said.
Since taking office eight months ago after leading his Thai Rak Thai
(Thai Unity) party to the country's first-ever landslide victory,
Thaksin has pledged sweeping economic and social reforms to better
prepare the country for what he calls the "knowledge" age. However,
the constant doubts over his future have contributed to delays and at
times mixed messages over his intentions.
Thaksin had consistently denied any wrongdoing, saying his failure to
declare all his assets was an "honest mistake". The decision, however,
raises questions about the credibility of the National Counter
Corruption Commission (NCCC), a body set up under Thailand's new
constitution to help clean up politics and crack down on graft. The
NCCC indicted Thaksin in December and led the case against him in the
Constitutional Court.
The case against Thaksin, with a fortune of US$1.2 billion according
to Forbes Magazine, hinged on millions of dollars of shares
transferred to his domestic staff - including maids, a security guard
and a chauffeur - which he did not declare when he was deputy prime
minister in 1997, as required of Cabinet ministers under Thai law.
He said the declaration forms were unclear and his wife had
transferred shares to his domestic staff without his knowledge. The
head of the NCCC had argued Thaksin must have known about the share
transfers and they may have been an attempt to evade tax.
Before winning the January elections, Thaksin, 52, had enjoyed a
thriving career in telecommunications, becoming Thailand's wealthiest
man. He was born on July 26, 1949 in Thailand's northern city of
Chiang Mai. After earning a PhD in criminal justice in the United
States at Sam Houston State University in 1978, he joined the Police
Cadet Academy in his homeland.
......................
Thaksin and his wife, Potjaman Shinawatra, established a computer
dealership in 1982. It grew into Shinawatra Computer and Communication Plc, which changed its name to Shin Corp in 1999. Shin Corp now has assets of about $1.6 billion with a majority stake in the country's largest mobile phone operator, Advanced Info Service Plc. It also
holds a big stake in satellite operator Shin Satellite and has interests in the Internet, paging, television and other data communications.
..................................
Thaksin was appointed foreign minister in 1994 and resigned from every
position in the Shinawatra group before taking the position. He became
head of the Palang Dharma Party in 1995 and was appointed deputy prime
minister. He was appointed to the same position in 1997, but the
government collapsed the same year and was replaced by a coalition led
by Democrat party leader Chuan Leekpai.
In 1998, he founded the Thai Rak Thai party and won the landslide
victory in January 2001. Thaksin's support among the masses in the
rural heartlands from where power derives actually increased during
the court case. Popular support grew and the people decided Thaksin
was not guilty, opinion polls show. Thai Rak Thai alone holds almost
half the seats in the Lower House of parliament and has complete
control of all decisions with more than 300 of the 500 seats via its
multi-party coalition.
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