The Securities and Exchange Commission has given Prime Minister Thaksin Shinawatra and his daughter Pinthongta a clean bill of health after investigating alleged irregularities related to the offshore company Ample Rich Investments Ltd.

SEC secretary-general Thirachai Phuvanat-naranubala said Thaksin and Pinthongta had properly filed reports to comply with disclosure rules.

However, the commission has found that Panthongtae, the prime minister's son, violated disclosure rules and takeover codes in his accumulation of Shin Corp shares.

At a press conference yesterday, Thirachai said the investigation had been conducted within the framework of the Securities and Exchange Act. Therefore the securities watchdog did not determine if there was actual payment for the transactions involving Thaksin and his children.

On June 11, 1999, Thaksin sold 32.92 million shares of Shin Corp to Ample Rich. These later multiplied tenfold when Shin split its par value from Bt10 to Bt1 per share. On December 1, 2000, Panthongtae bought Ample Rich, which then had only US$1 (Bt40) in capital, from his father.

"Under Article 246, the SEC focuses solely on acquisition reporting and not if there was any payment or when [the transactions took place]," Thirachai said. "Finding that out has no weight on the investigation whether the securities law is violated."

He also pointed out that in the investigation, the SEC did not set out to discover if Ample Rich was Thaksin's nominee because Panthongtae, who claimed ownership of Ample Rich, was an adult and not an under-aged child. Therefore, there was no reason to assume that Ample Rich held Shin shares on behalf of other individuals.

"This has nothing to do with the securities law," he said. "But if any state agencies have doubts, or want to investigate if there is a violation of any other laws, they can press for documents from the individuals involved."

The nominee issue has been the subject of intense speculation. If it was proven that Ample Rich was Thaksin's nominee, the prime minister could be charged with violating Article 209 of the Constitution, for failing to report the assets, as required, when he took office.

Meanwhile, Panthongtae Shinawatra faces penalties for violating the Securities and Exchange Act. Under the relevant provisions of the law, he is liable to imprisonment for a term not exceeding two years, or a fine not exceeding Bt500,000 and a further fine not exceeding Bt10,000 for every day during which the contravention continued, or both.

According to The Nation's calculations, Panthongtae could be fined about Bt20.3 million for failing to launch a tender offer. For failing to disclose Ample Rich's holding of Shin shares, he could be fined another Bt20.3 million and, for a third offence committed in September 2002, he could face an additional penalty of Bt13 million.

Panthongtae and Pinthongta were also cleared of charges of insider trading in their purchase of Shin shares for Bt1 each three days before reselling them to Temasek Holdings at Bt49.25. Thirachai said that as they owned Ample Rich and as the transactions were done out of the market, the buyer and the seller had not caused advantage or disadvantage to others.

However, Thirachai said the Stock Exchange of Thailand was still investigating alleged trading irregularities involving the Shin subsidiary, Advanced Info Service Plc (AIS).

Executives of AIS, including Thaksin's sister Yingluck - the company's president - are reported to have sold AIS stock ahead of the Shin sell-off to Temasek Holdings of Singapore.

"We have not yet received the SET's investigation result," he said.

Commenting on the recent change in Shin holdings of Aspen Holdings Co Ltd and Cedar Holdings Co Ltd - the Temasek nominees that bought 49.6 per cent of Shin and are tendering for its remaining shares - Thirachai said the companies were not obliged to report the change because they identified themselves as a single group of investors in the tender offer proposal.