BANGKOK - A Thai court on Friday seized $1.4 billion worth of assets belonging to former premier Thaksin Shinawatra's family, about $900 million less than the maximum in a decision that could appease some anti-government forces.
Thailand's Supreme Court ruled that the self-exiled Thaksin had concealed his shareholdings in his family telecommunications conglomerate, Shin Corp while in office from 2001-2006 and some of his government's policies had favoured the business.
It was unclear if the $900 million not confiscated would be returned to the twice-elected Thaksin, who was ousted in a 2006 coup and later convicted of graft in absentia
Judges reading a lengthy verdict said his policies benefited his family business.
Authorities say major violence is unlikely but have mobilised thousands of police and troops to pre-empt any backlash by supporters of the 60-year-old fugitive at the centre of a 5-year political crisis in Southeast Asia's second-biggest economy.
"The partial seizure of the assets should be what financial markets prefer because both sides can claim victory," said Prapas Tonpibulsak, chief investment officer at Ayudhya Fund Management.
Prosecutors say Thaksin and his former wife, Potjaman na Pombejra, concealed ownership of shares in his family business Shin Corp SHIN.BK while in office from 2001 to 2006, and that he abused power by tailoring policies to benefit the company.
Thaksin, ousted in a 2006 coup and convicted in absentia of graft, has denied the charges from self-imposed exile in Dubai.
One judge said a Thaksin-era government policy to convert part of a telecommunications concessions fee into an excise tax "favoured Shin Corp at the expense of the state".
A judge also said Thaksin concealed his ownership of stock in Shin Corp, an argument seen as a main precondition for deciding there was a conflict of interest in government policies benefiting Shin Corp, a major telecommunications business.
Security was tight around Bangkok's Supreme Court on what has become known as "Judgment Day", with cellphone signals jammed to prevent remote-detonated bombings and judges ferried to the courthouse, some from safe houses, in bullet-proof cars.
Six-hundred police guarded the court. Security agencies said thousands of riot troops were on standby in case of unrest.
Political uncertainty has subdued Thailand's benchmark index in recent weeks, with many traders waiting to see what the ruling will bring. But foreign investors were net buyers for four straight days this week, drawn to bargains in Thailand where stocks are trading at just 10.6 times forecast 2011 earnings, Asia's cheapest after Pakistan, Thomson Reuters data shows.
The pro-Thaksin "red shirt" movement, which last April forced a regional summit to be abandoned and staged demonstrations that sparked Thailand's worst street violence in 17 years, plans a mass rally in Bangkok on March 14 but says it will not protest on Friday whatever the verdict. [ID:nSGE61N09L]
The delay was widely seen as a move to distance the movement from any groups that might seek to stir up trouble. A splinter pro-Thaksin group, "Red Siam", rallied close to the court on Friday, but has vowed to remain peaceful.
The "red shirts" accuse authorities of playing up the risk of unrest. Security agencies have said they are most concerned outside agitators, or a "third hand", will trigger violence.
The twice-elected Thaksin says he will fight any seizure of the assets from exile.
© 2010 Reuters. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters.
|
