February 2010 : Court seized 46 billion from Thaksin Court seized 46 billion from Thaksin Cabinet end use of GT 200 More time to study constitutional amendment Legislative reform started Measures to assist property development ended More Government bonds to be issued Seven Map Ta Pud projects get green light Measures to stimulate tourism extended Public areas to become smoke-free zones Suvarnabhumi paid more compensation for noise pollution BMA University approved Another 400 MB to tackle drug problems Court seized 46 billion from Thaksin On 26th February 2010, the Supreme Court's Criminal Division for Political Office Holders ruled that the State can seize 46,373,687,454 Baht, out of the total of 76,621,603,06 frozen in bank accounts of Thaksin Shinawatra and his former wife, Pojaman. The Court ruled that during his premiership, Thaksin and his wife concealed their ownership of shares in Shin Corp., and therefore breached the following laws: Articles 110, 208, 291 and 292 of the 1997 Constitution, The Cabinet’s Share Holding Act of 2000, Articles 4, 5 and 6 of the 1999 Anti-Corruption Act, and Articles 119 and 122 of the Criminal Act. These laws were enacted to guard against conflict of interest by limiting the number of shares allowed to be held by Cabinet members and holders of political positions. The 76 billion baht frozen in bank accounts are held in the names of Thaksin’s nominees. They represent funds paid on 24th January 2006 by Temasek Holdings, an investment vehicle of the Singapore Government, for 1,149,490,150 shares in Shin Corporation or 48 percent of the total. The share purchase was concluded three days after the enforcement of the Telecommunication Amendment Act, allowing a foreign company to hold a maximum of 50 percent shares in any Thai company. Thaksin argued that the Shin shares were not his as they were sold to members of his family before he became prime minister. Nevertheless, the Court took into account the fact that dividend from the shares were paid into the couple’s bank accounts. The nine-member Supreme Court also found that while in office, Thaksin abused his position by expanding his telecommunications business through the following methods: The revision of the Excise Tax Act in 2003 increased tax rates for telecommunication businesses from 20 to 50 percent. An amendment was also made to Shin’s mobile phone concession contract, allowing it to deduct excise tax against concession fees owed to the State. This resulted in the mobile phone company being relieved of paying concession fee and reducing State’s revenue. High excise rate also barred competitors’ entry into the market and prevent free competition. An amendment to the contract with Advanced Info Services (AIS), which is owned by Shin, for pre-paid services, changed the structure of fees payable by AIS to the State from progressive rates of 25-30 percent to a fixed rate of 20 percent. This caused a loss of 5,000 million Baht to the State telephone enterprise. Amendments to mobile phone networking contracts between AIS and State agencies resulted in roaming fees being reduced and AIS allowed to deduct roaming fees before calculating tax. These caused a loss to the State of more than 18,970 million Baht. In the telecommunication satellite business, amendments to contracts caused a total loss to the State of 4,000 million Baht and saved Shin Corp., the parent company and Shin Sat., the operating company, of 16,000 million Baht. The amendments were: a. The amendment of the Thai Com’s contract: the provision that the company was to provide 2 operating satellites and 2 reserves was changed. Reserve satellites became IP STAR which was used for broadband high speed internet, not as reserves. b. The amendment of the domestic satellite contract allowed a reduction in Shin Corp.’s holding in Shin Sat. c. The approval for Shin to retain insurance premiums of 26 million USD for the cancellation of two reserve satellites. The Export-Import Bank was required to extend a 4,000 million Baht loan to Myanmar at lower than cost rate of interest, with losses to be covered by the Finance Ministry. Starting re-payment period was also changed from 2 to 5 years. The loan was used to purchase Shin Sat.’s goods and services in developing telecommunication system in Myanmar. Cabinet end use of GT 200 The Cabinet resolved to end the use of GT200 explosion detector after the Science and Technology Ministry found that it is not effective as claimed. However, where there is no other detecting device, users of GT200 must be informed of the risk. Global Technical Co. Ltd., a British manufacturing and marketing company, claims that GT200 works on a principle of ‘molecular magnetic resonance’ that could detect with different sensor cards, explosive, weapons and drugs. The device, purchased at an average price of 950,000 Baht, had been used by the Thai Army since 2004. A total of 757 units: 59, 107, 44 and 547 were purchased during the Surayut Chulanont, Samak Sundaravej, Somchai Wongsawat and Abhisit Vejjajiva Administrations respectively. Many more were planned to be used particularly in the four southern provinces. A car bomb in Sungai-Kolok District of Narathiwat Province on 6th October 2009 which caused death and injuries created a suspicion of GT200’s effectiveness. This led to the appointment of the Science and Technology Ministry’s ad hoc testing committee. Previously, the BBC tested an ADE 651 device, which is almost identical to the GT 200, and reported that it could not detect a bomb. The device was later banned by the British Government. More time to study constitutional amendment As proposed by the Senate and before its expiry date, the President of the National Assembly and Speaker of the House of Representatives, Chai Chidchob, agreed to extend time by another 180 days in order for the committee to study the constitutional amendment motion submitted by five coalition parties. Legislative reform started The House of Representatives, by a majority vote of 332, decided on the 3rd round to support a draft Bill on Legislative Reform and to appoint a Legislative Reform Committee with functions: to investigate, study and analyze as well as to encourage research in order to develop goals, policy and measures for legislative reform, to review and develop laws encouraging civic participation, to recommend legislative reform plan, to review and comment on bills initiated by the House of Representatives, the Courts, independent agencies and the public, and to advise and encourage bills drafted by the public. Measures to assist property development ended The Cabinet decided to end, as scheduled, measures to stimulate property development. These measures are: A reduction in specific business tax, from 3.3 to 0.11 percent, A reduction in building registration and transfer of ownership fees, from 2 and 1 percent respectively, to 0.01 percent, A waiver of personal income tax for buyers of new homes to the value of the actual cost of the property up to a maximum of 300,000 Baht. In addition, measures to provide free water supply to low income households will also end. However, three other measures: free electricity for low income households, free non-air conditioned buses within Bangkok and free third-class train fare will be extended for another 3 months, until 30th June 2010. These help low income families, especially free electricity which benefits 8 million families. More Government bonds to be issued According to the Finance Ministry, 100 trillion baht worth of Government bonds will be issued between 29th March and 2nd April. Details are: Bond period: 6 years Interest rate: Progressive Tax waiver: Maximum 15 percent Priority will be given to senior citizens who can purchase bonds on 29th -30th March, but limited to minimum 10,000 baht and maximum one million baht per person. Then the bonds will be offered to the general public during 31st March and 2nd April. Seven Map Ta Pud projects get green light On 24th February, the Central Administrative Court granted permissions for another 7 projects in the Map Ta Pud Industrial Zone to continue to build, to install equipments and to test run machinery on conditions that operations conform strictly to their Environmental Impact Assessments and other relevant laws. Now there remain 57 out of 76 projects that are still stopped under the interim injunction of the Central Administrative Court. Measures to stimulate tourism extended On 2nd March, the Cabinet approved an extension of measures to stimulate tourism for another year, until 31st March 2011. These are: Waiver of tourist entry visa, Promotion of domestic travel for state officials on study trips and seminars, Partial subsidy of electricity charges for hotels, Reduction of landing and parking fees for all aircrafts, Local entrepreneurs can claim 100 percent deduction before tax for expenses incurred in providing their employees with seminars, trainings and travel incentives in Thailand. In 2010, 15.3 to 15.5 million tourists are expected to visit Thailand, an increase from 14.4 million in 2009. Public areas to become smoke-free zones The Public Health Ministry announced that all public areas are to become smoke-free zones in accordance with the World Health Organization’s convention on tobacco consumption. These areas include all state offices, public parks, stadiums, gas stations, universities, temples and tourist areas such as Chatuchak Sunday Market and Kao Sarn Road. The regulation will become effective 90 days after gazetted, penalty for breach of the regulation is a fine of maximum 2,000 Baht. Suvarnabhumi paid more compensation for noise pollution The Airport Authority of Thailand paid another 13 million Baht to 50 households in the vicinity of Suvarnabhumi Airport. The money will be used to insulate buildings affected by noise pollution. The Cabinet resolved, on 29th May 2007, that buildings built before 2001, within the radius of 60-70 decibel of Suvarnabhumi Airport will be compensated for noise-pollution. The Authority has already paid more than 900 million Baht. BMA University approved The Senate by a majority of 64 voted, in the first round, to accept the Bangkok Metropolitan Authority (BMA) University draft Bill to establish a higher education institution under the chairmanship of the BMA Governor. Operations and budgets of the BMA Medical College, Vajira Hospital and Kaue Karun Nursing College will be transferred to the new university within 120 days after enactment. Another 400 MB to tackle drug problems The Office of the Narcotics Control Board approved a 400 million Baht budget in order to suppress drug use in Thailand. The military, police and civil officials will cooperate in this effort. Drug use in 285 districts and 5 provinces in the BMA vicinity have increased particularly in areas with high employment and high-purchasing power. Although the most popular is “Ya Ba”, there is a trend towards “ice”.