The Personal Affairs Office of HRH Crown Prince Maha Vajiralongkorn yesterday issued a strongly worded statement distancing itself from MR Tongnoi Tongyai, who was earlier named by Temasek Holdings of Singapore as its Thailand adviser.

Last Tuesday, Temasek, which has been facing sharp criticism here over its Bt140-billion acquisition of Shin Corp, was reported to have approached Tongnoi, a former royal aide, to be the chief adviser of its planned Thai office.

However, the plan was dropped two days later. According to a statement issued by Jimmy Phoon, a senior managing director of the Singaporean state investment firm, the appointment of Tongnoi had already been withdrawn.

In the statement, HRH the Crown Prince's Personal Affairs Office said the reports have "caused misunderstanding and confusion as the claims are false and intended as a means to further MR Tongnoi Tongyai's own business interests. The claims have not only damaged the country but also destabilised international investment in Thailand.

The statement further added that MR Tongnoi "is a cunning man and personally immoral".

Tongnoi, who used to be a deputy principal private secretary to His Majesty the King, was understood to have been approached by Temasek because of his background and connections, as the Singaporean firm was about to open its local office to deal with potential legal and other issues facing the Shin Corp transaction.

The Thai government is investigating whether the law on foreign ownership of Thai firms was violated as a result of the transaction in which the family of former premier Thaksin Shinawatra sold their entire majority stake to Temasek.

Chirayu Isarangkun na Ayutthaya, chairman of Siam Commercial Bank (SCB), said SCB, which had worked for Temasek in the Shin Corp deal, had no role in introducing Tongnoi to Temasek.

"I didn't know that Tongnoi was approached or that he had turned down the invitation from Temasek," said Chirayu, who is also director of the Crown Property Bureau.

Given Tongnoi's background and social connections, industry sources said Temasek might believe that his appointment as corporate adviser could help quash negative criticisms of its investment in Thailand. Public pressure against the Singaporean firm has also increased in the wake of September 19 coup, as Temasek is expected to reduce its stake in Shin Corp from the current 93 per cent to comply with Thai regulations.

Industry sources said Temasek also planned to shake up the board of directors of Shin Corp, which is chaired by Pong Sarasin, who is being investigated over allegations that he was a nominee of Temasek.

Tongnoi was also said to be a potential new member of the board.

Meanwhile, Singapore's Foreign Ministry has reportedly sought a meeting between Prime Minister Lee Hsien Loong and his Thai counterpart, Surayud Chulanont, during the upcoming Asean summit in China.

Surayud will attend the summit in Naning on Monday and Tuesday.