The Ministry of Information and Communications Technology was also in discussion with Temasek Holdings on the possible back-buy of the satellites.

Surayud asked the DSI to look into the case during the Cabinet meeting yesterday when the options to take back Shin Satellite from Singapore's Temasek Holdings were discussed.

Council for National Security (CNS) chairman General Sonthi Boonyaratglin said yesterday he wanted the satellite operator Shin Satellite bought back from Temasek, but he insisted the military would not seize the company.

"The only likely and possible way is to buy it back, but we have not yet decided on the matter," he told reporters after yesterday's meeting of the CNS.

Sonthi started the satellite debate last Friday when he said he wanted the national assets sold to Singapore, including satellites, to be returned to the Kingdom.

Temasek bought telecom giant Shin Corp, the parent company of Shin Satellite, last year from the family of ousted prime minister Thaksin Shinawatra. ShinSat operates four satellites owned by the Thai government under a concession that has 10 years remaining.

Information and Communica-tions Technology Minister Sitthichai Pookaiyaudom yesterday informed the Cabinet of the ministry's decision to take back Shin Satellite from Singapore.

He said that the ministry was acting "in good faith" and didn't intend to bully anyone.

"The government has followed the rules in approving the concessionaires to others. But since a Thai company sold out [the assets] to foreigners, they violated the law," he said.

However, Sitthichai added: "We have to determine first whether Kularb Kaew is a nominee. If the company is proved to be a nominee, we can take back our concession. The Commerce Ministry once looked into the case and submitted its report to the police. But we have to be thankful to the Justice Ministry for sending officials to help us to look at the case."

Sittichai said that the ministry was informally talking with Temasek on the issue but they hadn't reached a conclusion yet.

"Temasek representatives indicated that if they can get a good price, they might sell it back. But everything depends on the agreement."

He said the government would have to spend around Bt10 billion to buy 100 per cent shares. "But we have to ask either the public or private sectors to buy the shares."

Sittichai said it would take about a month to study the poll to see whether the public would support the government taking back the satellites.

Meanwhile, the Commerce Ministry's Business Development Department pointed out the government had the right to withdraw the licence of Shin Satellite if the company was found to have violated the Telecommunications Act, its director-general Kanissorn Navanugraha said.

According to the law, the concessionaire to operate the satellite business in Thailand should be a Thai-owned firm. Thus, if the major shareholders of Shin Corp, who own Shin Satellite - Kularb Kaew - are found to be the nominees for Temasek, the company will be punished and its licence to operate the satellites recalled for a business licence, he said.

The telecommunications business is listed in Annex III of the Foreign Business Act - which includes services and businesses subject to protection. Therefore, foreign investors who hold more than 50 per cent of a company's stake, cannot operate telecoms in the Kingdom.

The Central Investigation Bureau (CIB) is still investigating Kularb Kaew - one of three cases involved in last year's Shin Corp takeover.

Although Kularb Kaew might plan to restructure its shareholders, if it was found to have violated the nominee law at the time of the takeover, all parties involved should be punished and foreign shareholders would need to lower their stakes in Shin, Kanissorn said.

The department is cooperating with the CIB to provide information about the case to the police to conclude the investigation.

Meanwhile, Kanissorn said the government should finish amending the Foreign Business Act within a month before passing it to the Cabinet for approval. He said the government would consider the appeal made recently by foreign embassies in Bangkok in considering the amendment act.

Petchanet Pratruangkrai,

Piyanart Srivalo

The Nation