The main shareholder in controversial Kularb Kaew Co Ltd, Surin Upatkoon, yesterday insisted he financed his investment in the company with his own money.

Moreover, if his money, transferred from the Fairmont Investments Group, based in

the British Virgin Islands, is liable for taxation, then he is prepared to obey the law.

After testifying yesterday before the Commerce Ministry's investigative committee, he insisted he was not a nominee of the Singaporean government's investment arm, Temasek Holdings. The committee is investigating Kularb Kaew and specifically whether it is a nominee of Temasek Holdings.

"Hmm," he responded when asked if he regarded the investigation as fair. "I think I have received fair treatment."

Surin emerged as the major shareholder of Kularb Kaew, after buying a 68-per-cent stake in the company for Bt2.7 billion. Funds for the investment were transferred from Fairmont to his account. The identity of the ultimate shareholder of Fairmont is unknown. Surin's investment triggered questions about whether he was acting as Temasek's nominee.

He appeared before the committee yesterday with Jimmy Phoon, a Temasek investment director, in their capacity as directors of Cedar Holdings.

Kularb Kaew holds a 51-per-cent stake in Cedar, and Cedar now holds a 51-per-cent stake in Shin Corp Plc.

It was the first time Surin had appeared in public following speculation he had received money from an anonymous source, possibly the owner of Fairmont.

The findings of an investigation by the Business Development Department, which still have not been verified by the ministry, indicated that Surin received the money from Fairmont to finance his investment in Kularb Kaew. Surin himself ordered the money transaction on behalf of Greenland Co Ltd, which delegated power over Fairmont to Surin. To date, the identity of Greenland's ultimate shareholder remains unknown. Surin declined yesterday to comment on the issue.

Democrat MPs have pointed out that if Fairmont was not his company, then the money should be deemed Surin's income and be liable to income tax. And if Fairmont is not his company, then the big question is: who does own it?

Temasek's Phoon said he was ready to work with the Commerce Ministry committee.

"We are not at liberty to discuss the details of our discussions. But we'll work with the committee and go forwards with the investigation," Phoon said.

The committee also heard testimony yesterday from Siam Commercial Bank official Sirichai Sombatsiri. Commerce Ministry deputy permanent secretary Yangyong Phuangrach, who chairs the investigative committee, said all three witnesses made statements about the money trail and stock holdings. It was the committee's fourth meeting.

"We're clearer on their investment motives, but not yet 100 per cent clear. We still have to verify the facts," said Yangyong, adding that the committee had no reason to stall the investigation results.

Next Tuesday, Pong Sarasin and Suphadej Poonpipat - Kularb Kaew's original main shareholders and who sold most of their stakes to Surin - will testify to the committee. Next in line are officials from the Bank of Thailand and the Securities and Exchange Commission

Petchanet Pratruangkrai

The Nation.