Thanathorn faces new complaint over 'blind trust'

Thanathorn faces new complaint over 'blind trust'

Thanathorn Juangroongruangkit gives a speech during his campaign rally in Bangkok on Feb 22. (Reuters photo)
Thanathorn Juangroongruangkit gives a speech during his campaign rally in Bangkok on Feb 22. (Reuters photo)

An activist has asked the Election Commission to probe the Future Forward Party’s leader for making a false claim that he is the first politician to transfer shares to a blind trust.

Srisuwan Janya, secretary-general of the Association for the Protection of the Constitution, filed the petition with the EC on Tuesday.

Thanathorn Juangroongruangkit told a briefing on the previous day that he would transfer his shares to a blind trust to be managed by Phatra Asset Management Co Ltd for transparency and to set standards among politicians.

Mr Srisuwan said Mr Thanathorn claimed this was the first time it was done, which was not true, since at least 15 politicians had transferred their shares to asset management companies. 

“Besides, such share transfers are a constitutional requirement. So the claim could aim to boost his popularity in himself and his party and could be considered deceiving and misleading voters,” Mr Srisuwan said.

The activist said the offence was punishable by a jail term of 1-10 years and/or a fine of 20,000 to 200,000 baht. Mr Thanathorn could also face a political ban for 20 years.

A transcript of Mr Thanathorn’s briefing on Monday showed he said no politicians had ever used a private fund and voluntarily made it blind. “This is a first in Thailand. It’s my intention to upgrade the standards of businessmen-turned-politicians, to show their intention and sincerity to the public.”

Mr Thanathorn said no law had been passed yet to support the setup of a blind trust, what he would do was to set up a private fund to be managed by Phatra. Both sides signed a memorandum of understanding to make it “blind” -- Mr Thanathorn would not know what assets Phatra would invest in on his behalf.

Mr Thanathorn said he would set a mix of asset types, citing 10% gold, 50% shares, 30% bonds and 10% property as an example, and Phatra would invest within that framework. A third-party financial institution would be hired to make sure Phatra and Mr Thanathorn act in line with the MoU.

The former auto-parts tycoon said he planned to set up the fund in May. Even though Thai laws prohibit ministers from holding shares in companies which are state concessionaires, “I will go a step further by requiring the fund not buy any Thai shares,” he said.

He added the fund would be returned to him three years after he leaves office, a year longer than international standards.

The announcement drew both praise and scorn. Isra News reported at least 15 ministers had set up private funds to be managed by asset management companies, suggesting what Mr Thanathorn claimed is not true. It did not say whether the funds were “blind” or not. 

Former finance minister Korn Chatikavanij of the Democrat Party also said Mr Thanathorn’s claim to be the first was not true since Mr Korn and other ministers had done that. He expressed concern about the “blind” part of the deal.

“When nobody knows what assets he owns, checks and balances cannot be done. The best way is to sell off all assets [but not to nominees]. If they are not sold, it should be disclosed for scrutiny and shouldn’t be transferred to an ‘invisible’ place,” he wrote on Facebook.

Sarinee Achavanuntakul, a financial academic, did not agree. She said “invisibility” does not equal “unaccountability -- it means the owner does not know what’s in the portfolio or has influence over it. “The trustee will have to report details of the fund to the National Anti-Corruption Commission,” she posted on Facebook.

Former finance minister Thirachai Phuvanatnaranubala praised Mr Thanathorn’s move but pointed out most of the shares Mr Thanathorn has might be in his family business.

He was referring to Thai Summit Group, which is not a public company.

“With that knowledge, the fund manager may not sell them even though it can, and all assets will remain within the family. Any new investment the fund makes might be only from dividends or gains, which are relatively small.

“I urge the NACC to set rules or ways to have family businesses disclose significant transactions which may constitute conflicts of interest,” Mr Thirachai wrote on Facebook.

Mr Thanathorn wrote on Facebook after the comments that he still believed he had done more than most in this respect even though no law stipulated it. " (1) What I will do is 'blind' -- I can't order it. I can't see it. (2) I insist I would not invest in Thai shares. (3) I won't get it back until three years after I leave office.

"If this is not true, please send me the details of what others have done," he wrote.  

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