Potjaman Shinawatra

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Khunying Potjaman Shinawatra (born Potjaman Damapong) (born November 22, 1956) is the wife of former Thai Prime Minister Thaksin Shinawatra. Potjaman played a key role in the development of Thaksin's commercial enterprises in the 1980's. After Thaksin was deposed by a military coup, the junta-appointed Assets Examination Committee accused her of irregularities in the purchase of government-owned land. However, the Bank of Thailand, which supervised the sale of the land, claimed that the sale was conducted properly.^[1] The case is currently in court. She has one son, Panthongtae, a businessman, and two daughters, Pinthongta and Paetongtarn, both students.

1 Sale of Shin Corp
2 Ratchadapisek land purchase controversy
3 See also
4 References

[edit] Sale of Shin Corp

On January 23, 2006, the Shinawatra family sold their entire stake in Shin Corporation to Temasek Holdings. The Shinawatra and Damapong families netted about 73 billion baht (about US$1.88 billion) tax-free from the sale, using a regulation that made individuals who sell shares on the stock exchange exempt from capital gains tax.^[2]

The Thailand Securities and Exchange Commission investigated the transaction and cleared the entire family from wrongdoing, except for Potjaman's son, Panthongtae.^[3] The SEC did find that Panthongtae committed minor infractions with regard to information disclosure and public tender offers in transactions between 2000 and 2002. He was fined 6 million THB (about 150,000USD).^[4] Allegations of insider trading by Potjaman, other Shinawatra family members, Shin Corporation Corp executives, and major shareholders were also investigated. No irregularities were found. On 21 September 2006, the Revenue Department sent a letter to the Shinawatras advising the Shinawatra family not to pay taxes on the transaction. Also in 2006, Revenue Department Director-General Sirot Sawadpanish testified to the military junta's Assets Examination Committee that the transaction was not taxable.^[5] The junta investigated Sirot and 6 other senior Ministry of Finance officials for their role in dispensing legal advice regarding the transaction.^[6] The AEC demanded that Potjaman testify to the Committee, and threatened to jail her if she did not.^[7].^[8]

[edit] Ratchadapisek land purchase controversy

In January 2007, the Financial Institutions Development Fund complied with an Assets Examination Committee request to file a charge against Thaksin and his wife over their purchase of four 772 million baht plots of land from the FIDF in 2003. The charge was based on alleged violation of Article 100 of the National Counter Corruption Act, which specificies that government officials and their spouses are prohibited from entering into or having interests in contracts made with state agencies under their authorisation. However, Article 4 of the Act indicates that persons committing malfeasance must be direct supervisors of the damaged party - in this case, the FIDF. At the time, Bank of Thailand Governor Pridiyathorn Devakula directly supervised the FIDF, not Thaksin.^[9] Article 29 of the Bank of Thailand Act of 1942 stated that the Prime Minister did not have jurisdiction to oversee the FIDF, because those managing the fund had sole authority for policies, control, oversight and regulations governing the agency.^[10] Pridiyathorn's testimony to the court occurred in secret - Thaksin's legal team was not allowed in the room. The FIDF later noted that the land was sold to the Shinawatras at a price greater than its appraised value.^[11] The case went to the Supreme Court 10 July 2007.^[12]