Kasikorn Asset Management chairman Piyasvasti Amranand told a seminar organised by the Economic Reporters' Association that the Supreme Administrative Court may have to think hard about revoking PTT's privatisation.

"If the court says yes to the revocation, what would be done with PTT shares that have been traded since 2001?" said the former director-general of the National Energy Policy Office.

He pointed out a difference in the cases of PTT and Egat: after privatisation, PTT does not have the right to expropriate private land, a right that remains under the jurisdiction of the Energy Ministry.

Still, he backed the civic groups' move, saying it would end confusion over future PTT operations.

The seminar was organised a day after the Federation of Consumers Organisations announced its plan to file a petition with the court next month, asking it to revoke the privatisation of the state energy enterprise.

Due to certain similarities in the PTT and Egat cases, the federation hopes the court will nullify the two decrees that allowed the state-asset sale. The civic groups also vowed to revoke the privatisation of other state enterprises, including MCOT Plc.

Yesterday, PTT's share price ended Bt2 lower at Bt232.

Thammasat University law lecturer Janjira Iammayura said even if the court did revoke the decrees, Thai Rak Thai would definitely find renewed strength after Sunday's election and proceed with the privatisation.

"Still, it would be more careful in avoiding a conflict of interest," she said.

She agreed with Piyasvasti that it would be difficult to revoke the privatisation of PTT, which has already floated shares in the stock market.

"It's very unlikely the court would repeal the entire process and return PTT to being the Petroleum Authority of Thailand," she said.

More likely would be the court ordering PTT to separate its natural-gas-pipeline business, even though this could affect PTT share prices, and investors might sue the government for compensation, she said.

She asserted this was a lesson the government must learn: it should have passed a law protecting public interest and been more precise about future state holdings in privatised agencies before proceeding with privatisation.

Piyasvasti said if the government wanted to go ahead with Egat's privatisation, it should start with restructuring the enterprise's business and appoint an independent regulatory board.

"This is normal practice by countries around the world. They restructure the state enterprises first and wait for the formation of an independent regulator. Then parts of the state agencies are sold. Here, the government just rushed into the stock market," he said.

Duenden Nikomborirak, an economist at the Thailand Development Research Institute, said the Supreme Administrative Court's Egat ruling had set a benchmark for future privatisation of state enterprises.

She said PTT, MCOT and Airports of Thailand Plc had been privatised and made into monopolies in their respective spheres, which did not constitute a level playing field.

"Their monopolistic power must be recalled," she said, adding that PTT should guarantee the public interest and that of its shareholders.

She also doubted PTT privatisation would be revoked, but agreed certain problems could be corrected.

Wichit Chaitrong

The Nation