Surin's indictment sought in Shin Corp shareholding case

Surin's indictment sought in Shin Corp shareholding case

Attorney-General Trakul Winitnaiyapak has ordered the indictment of Surin Upatkoon, the main shareholder of Kularb Kaew Co. 

Santhanee Disayabutr, deputy spokesman of the Office of the Attorney-General, said the indictment order was issued on Jan 21.

Mr Surin is accused of being a nominee of Singapore's investment arm Temasek Holdings in the telecom firm Shin Corp, later renamed Intouch Plc.

He is alleged to have violated the Foreign Business Act that limits foreign shareholding in businesses in Thailand to 49%.

The case concerns Shin Corp, the company founded by ousted prime minister Thaksin Shinawatra and owned by his family. It was sold to holding companies linked to Temasek Holdings in January 2006.

When the shares of the holding companies and Kularb Kaew are combined, they exceeded 49% in Shin Corp. Ms Santhanee said public prosecutors would ask investigators to find Mr Surin for indictment in the Criminal Court.

The 49% Shin Corp stake sale, worth more than 70 billion baht, occurred on Jan 23, 2006, just after a telecommunications act took effect on Jan 20, 2006, when Thaksin was the prime minister.

The act increased the ceiling of foreign shareholdings in a Thai telecoms business from 25% to 49%. The sale caused a stir with critics claiming the Shinawatra's holdings created a conflict of interest for Thaksin.

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