Deputy Commerce Minister Preecha Laohapongchana said yesterday the decision followed a complaint submitted to the ministry by Surin Upatkoon's counsellor. Surin asked for fair treatment: if the four companies involved in the Shin Corp deal are investigated over the question of nominees, then other firms including United Communi-cation Industry (UCOM), which is 75 per cent indirectly and directly owned by Norway's Telenor, should also come under investigation.

UCOM was one of the 16 companies under scrutiny, according to the list  Deputy Permanent Secretary Yanyong Phuangrach distributed to reporters. Others included Ek-chai Distribution System which operates Tesco Lotus outlets, Siam City Cement, DHL Logistics (Thailand), and Hutchison-CAT Wireless Multimedia. "Like in the probe on the companies involving the Shin Corp deal, the Business Develop-ment Depart-ment will consider three main issues - the shareholding structure, share transfers, and privileges that cover the voting rights and dividend payments," Yanyong said.

Four companies are now the focus of a ministry investigative committee - Kularb Kaew, in which Surin held a 68 per cent stake, Cedar Holdings, Aspen Holdings and Cypress Holdings.

Yanyong insisted yesterday the investigation into the four companies was not yet complete, despite the leak of the Business Development Department's finding that there were direct links between Temasek and Pong Sarasin and Suphadej Poonpipat, who are shareholders in Kularb Kaew. He did not say when the ministry probe would be completed. Earlier, he said the investigation into the four companies could be finished in two months.

Meanwhile, Siam Commercial Bank (SCB) president Jada Wattanasiritham said yesterday the bank was considering selling its 5 per cent stake in Cedar Holdings, following the nominee investigation. She said the bank was conducting a legal study of its position and options in the event that Kularb Kaew is deemed by the authorities to be a nominee entity. The study will indicate to the bank what it should do with its shares in Cedar Holdings.

SCB has been in the spotlight due to the equity participation and its role as a major lender to Singapore's Temasek Holdings and persons related to the takeover of Shin. Suphadej also borrowed Bt32.86 million from the bank, guaranteed by Cypress.

Jada, however, maintained the bank had no relations with Kularb Kaew, although SCB and Kularb Kaew were both shareholders in Cedar.

"SCB is only one investor that invested in Cedar. The bank doesn't know about Kularb Kaew's investment and the company's shareholders. Even though the bank knows that Kularb Kaew has Thai shareholders, we don't know the details of each shareholder," she said.

Asked whether the money trail of the Shin-Temasek deal showed that funds had passed through SCB, she said the money for the takeover had been transferred via many banks as it was such a big deal.

Jada acknowledged SCB had provided a convenient means of money transfer, as well as supporting lending to Temasek. The Kularb Kaew investigation therefore impacted on the bank's image because SCB has been involved in the deal from the outset.

Meanwhile, Bank of Thailand assistant governor Samart Buranawatanachoke said yesterday Cypress later emerged as the guarantor for Suphadej, after the loan was extended.

Suphadej said earlier he was unaware that the loan from SCB had later been guaranteed by Cypress. However, Samart made no comment on whether it was possible for a debtor not to know that his loan had been guaranteed.

In regard to SCB having changed the interest charged on Suphadej's loan from minimum lending rate (MLR) plus 3 per cent to MLR minus 3 per cent, the bank was authorised to do so because the rate would depend on its own analysis of the situation, Samart said.

Meanwhile, according to the Straits Times, Temasek maintained it had not violated Thai law in its purchase of Shin Corp in January. In a brief e-mail, Temasek said: "We have complied with all laws of Thailand. We are fully cooperating with the investigation by the Commerce Ministry."

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