Temasek Holdings of Singapore continues to demonstrate a stark naivete in its handling of the Shin Corp deal, with MR Tongnoi Tongyai becoming the latest casualty in its failed public relations campaign.

On Saturday, the Personal Affairs Office of HRH Crown Prince Maha Vajiralongkorn issued a strongly worded statement, distancing itself from MR Tongnoi, a former royal aide, who was earlier approached by Temasek to be its adviser in Thailand.

In the statement, the Crown Prince's Personal Affairs Office said the reports had "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".

This rare statement from the Crown Prince's office was stunning and unprecedented.

It reflects the magnitude of the problem MR Tongnoi could have brought to the monarchy by becoming an adviser to Temasek.

It could be seen that MR Tongnoi, who had served as a translator in the Crown Prince's Personal Affairs Office, might have been tempted to rely on his connections to help Temasek in the controversial Shin Corp deal.

About two weeks ago, a news story was leaked that Temasek had approached MR Tongnoi to be its local adviser.

As Temasek had planned to set up its Bangkok representative office before the end of this year, it wanted MR Tongnoi as its adviser.

It was expected to later appoint MR Tongnoi to sit on the Shin Corp board and, eventually, make him chairman, replacing Pong Sarasin.

Temasek had reportedly not been happy with Pong as throughout the Shin Corp ordeal he had done little to defend the deal.

However, a source said Pong's family members, particularly his son-in-law, had been disturbed by the turmoil surrounding Shin Corp and wanted him to step down.

When news broke that MR Tongnoi might replace Pong, Temasek tried to save face by issuing a statement to assure parties concerned that it still had full confidence in Pong.

But it was Temasek who had leaked the story that Tongnoi would be its white knight and replace Pong.

Tongnoi had been a director of Total Access Communications (TAC), the country's number two mobile-phone operator, when Temasek approached him.

He joined the board of TAC on the recommendation of a phuyai (a person of power and influence). He then abruptly informed TAC's board that he would be resigning, without giving any reason.

The following day, his name appeared in the Bangkok Post, saying that as Private Secretary to HRH Crown Prince Maha Vajiralongkorn, he would be joining Temasek.

"Do you think Temasek knows what it is doing?" said one Thai official, who said he frowned upon reading the story of Tongnoi's appointment as Temasek adviser.

Most Thais who had read the story would understand the serious implications of Tongnoi's acceptance of the Temasek offer.

The Shin Corp deal has become such a full-blown political controversy that it has cost Thaksin Shinawatra his premiership and his family has come under investigation over their wealth.

Moreover, Temasek's purchase of Shin Corp's assets are considered as having national security implications due to the satellite and television systems involved. This has also touched a nerve with many people, suspicious of the island state's intentions.

"I don't know who advised Temasek about MR Tongnoi. In Thailand, when you mention the name of someone, we know where the connections are and where they will lead. But the Singaporeans don't get it," said one person who has been following the Temasek deal closely.

The Tongnoi episode further exposed Temasek's thinking: that it is willing to forge illusionary connections to high places to build its business. This goes beyond Singapore's claim that Temasek's purchase of Shin Corp was mainly based on "commercial judgement".