PTT Plc is ready to present documents to the Supreme Administrative Court to counter demands by consumer groups that the company's privatisation be nullified, its president Prasert Bunsumpun said yesterday.

"We're still a state enterprise, of which a 68-per-cent stake is owned by the state directly and indirectly," Prasert said.

"Throughout the past five years that we have been a public company, the company has been managed with efficiency and transparency, in line with good corporate governance practices, with concern for stakeholders."

Prasert said the company was preparing documentary material to explain its case to the court.

Consumers groups yesterday submitted a petition to the Supreme Administrative Court asking the court to nullify two Royal Decrees that supported the privatisation of the oil and gas state enterprise in 2001. One of the decrees specifies the rights and benefits of PTT Plc, and the other specifies the conditions to terminate the law governing the Petroleum Authority of Thailand.

"In asking for the nullification, we do not want PTT to become a state enterprise again. Everything depends on the court's judgement," Sairoong said.

The court will decide whether to prosecute the case, which consumer groups filed after successfully calling on the court to nullify the two decrees that supported the privatisation of Electricity Generating Authority of Thailand (Egat). After 10 months as a private company, Egat returned to state-enterprise status in April, following the court's ruling.

A lawyer who asked not to be named said that if PTT were ordered to resume state-enterprise status, the state would need to hold a tender for all the shares that had been sold to investors.

"The question is, at what price the government would buy back the shares. Investors bought shares for Bt35, but now the price is over Bt200, exclusive of future gains," he said.

Appearing on the petition were five plaintiffs: Saree Ongsomwang, on behalf of the foundation for consumers; Rossana Tositrakul, a director of the Federation of Consumer Organisations; Sairoong Thongplon, manager of the federation; Phinant Chotirosseranee, chairman of Kanchanaburi's natural resource conservation group; and Boonyuen Siritham, a coordinator of Samut Songkhram's consumer protection club.

Caretaker Prime Minister Thaksin Shinawatra, the Cabinet and Energy Minister Viset Choopiban were highlighted as defendants.

The petitioners argue that the caretaker prime minister and the Cabinet had violated the Constitution and the Corporatisation Act BE2542 by privatising PTT. They said the privatisation had created a private monopoly on the oil and gas industry, and that the government had failed to establish an efficient regulatory framework, which had put the nation and consumers at a disadvantage.

Rossana said the Cabinet had abused its power, which had enabled a group of people to benefit from the privatisation.

"They also failed to follow key parts of the law, particularly when they appointed the committee that prepared for the formation of PTT Plc, as well as the public hearing process," Rossana said.

The consumer groups argue that the decrees permanently eliminated the state's control and bargaining power over PTT, which is against the law governing PTT. The law states that the objective is to ensure national security and the common interest through the control of oil and gas prices. Oil and gas are used to produce electricity, which is basic infrastructure.

The decrees also created a monopoly, which is against the Constitution because it affects public freedom. In addition, the decrees placed state assets in the hands of a public company. The groups also argue that the public hearings were not conducted properly.

"We have spent five months collecting evidence. We have filed this petition in the hope that it will set a standard on which all agencies and involved individuals will stick to," said Sairoong.

"We don't know the magnitude of the damage … When they said this petition would affect the economy, it could have just been a threat because if the economy depends solely on PTT, that means there is no equality in the economic system," he added.

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