Thirachai warns against PTT's share sale to Vayupak
Former Finance Minister Thirachai Phuvanatnaranubala has issued a warning against the proposal to dilute the government's stake in PTT Plc and Thai Airways International Plc, saying that such actions are deceitful and Thailand may lose creditability.
On his Facebook page, Thirachai today reacted to the proposed selling of a 2 per cent stake in PTT to Vayupak Fund, to reduce the Finance Ministry's stake to 49 per cent. Former deputy prime minister Virabongsa Ramangkura commented that such would free the government from the obligations to PTT's debts worth about Bt700 billion and allow it to borrow more. Vayupak Fund is a vehicle to own strategic investment on behalf of the government.
Thirachai said that as an accountant by learning, he was taught to book only actual figures. Despite the transfer of 2 per cent in PTT to Vayupak Fund, the aggregate government ownership would remain above 50 per cent.
"In reality, will this reduce the government's control? Is this a self-deceiving ploy or a ploy to deceive others? To accountants, this is window dressing - when the shop windows are decorated regardless of the mess inside," he said.
He foresaw no change in government control following the transaction. Under an international accounting practice, as Vayupak is a pseudo government fund, PTT would remain a state enterprise and the government's obligations to its debts remain.
He noted that Greece committed window dressing, to have the public debts hidden. Once the fact was revealed, the country has lost its creditability.
