Top court sentences Surapong to one year in jail over 2004 Thaicom contract

The Supreme Court’s Criminal Division for Political Office Holders ruled that Surapong was guilty of changing the multi-billion-baht contract to ease the financial burden of Shin Corp, the parent company of Thaicom Satellite. It held a concession granted by the Thai government for its investment in a number of communication satellites.
Former ICT permanent secretary Kaisorn Pornsutee and Chaiyan Peungkiatpairote, a former chief of the National Aerospace Agency, were given suspended jail terms of one year as the court reasoned that they both acted on the orders of the ICT minister.
The court ruled that Surapong violated Article 157 of the Criminal Code for negligence of official duty by approving the concession contract amendment for the benefit of a private company.
The amendment allowed Shin Corp to reduce its shareholding in Thaicom Satellite to a minimum of 40 per cent from the previous requirement of at least 51 per cent as stated in the original concession contract.
As a result, the private firm benefited from selling 11 per cent of its shareholding to the general public in the Stock Exchange of Thailand, while reducing its investment risks. In addition, the Cabinet did not endorse the contract amendment.
ICT Minister Uttama Savanayana yesterday declined to comment on the court’s verdict.
However, an ICT ministry source said the ministry was preparing a new master plan on satellite communications and would enforce the previous requirement for the private firm to increase its shareholding in Thaicom to a minimum of 51 per cent.
In addition, the ministry will probably include the related IP Star satellites in the concession contract.
In July 2013, the National Anti-Corruption Commission ruled that Surapong and two other former officials were guilty of helping the private firm to benefit from the concession by amending its contract with the government.
The controversial Thaicom Satellite issue emerged following the previous coup that overthrew the Thaksin government in 2006.
Former premier Thaksin Shinwatra previously owned the majority shareholding in Shin Corp, whose shares were later sold to Temasek Holding of Singapore. Shin Corp was renamed Intouch Holdings, which remains the major shareholder of AIS, the country’s largest mobile phone operator, and Thaicom.