PM confuses gain with public good. Shin Corp sell-off does not mean conflicts of interest would disappear. Even as ThaksinÂ’s family sold its controlling stake in telecom giant Shin Corp, which he founded, to a group of investors led by Singaporean state-owned investment firm Temasek in a deal worth Bt73.3 billion, the PM could not resist patronising the Thai citizens he swore to serve.
He said his children made the decision, so he could focus on politics and avoid criticism about conflicts of interest. Since Thaksin came to power in 2001, he has been hounded by allegations that some government policies were designed to help his family’s business empire unfairly. And the market capitalisation of Shin Corp – the parent company of the country’s biggest mobile-telephone service provider, Advanced Info Service (AIS), as well as other telecom and media firms – has tripled.
Thaksin could have been more honest about it. After all, from a strictly business point of view, cashing in all 1.5 billion shares in Shin Corp at Bt49.25 apiece was a legitimate and even shrewd deal: selling just as the competition was heating up and with global players joining in the fray, squeezing profitability.
The prime minister and his family sacrificed nothing, because their decision was based on calculated, self-serving motives, just like any other businesspersonÂ’s. But he misled the public when he said questions of conflict of interest had everything to do with him and his family controlling Shin Corp and that the question would go away once they offloaded their shares.
Thaksin has consistently shown himself to have great difficulty in distinguishing between selfish and national interests, which is why his claims of “sacrifice” for the sake of good governance rings hollow.
One does not have to look far for proof of his poor record as the countryÂ’s chief executive, who is supposed to be a facilitator of fair business competition and guarantor of a level playing field.
Thaksin has done nothing to resolve the key question of different tariff rates. AIS has enjoyed an advantage that has been factored into Shin Corp stock, the staggering capital gain of the shares and the cash that is now going into the ShinawatrasÂ’ pockets.
Examples abound that the prime ministerÂ’s family and business associates have enjoyed preferential treatment and are likely to continue to do so. Influence-peddling by politicians is a highly addictive habit.
The Shin Corp sell-off proves that sometimes, politicians can have their cake and eat it, too.