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Published on October 25, 2007

The court yesterday dismissed the case filed by special prosecutors accusing Prachai, Prateep, Pramual, Prayat and Malinee Leophairatana as well as Pornchai Wisahakit Co of jointly violating Articles 311, 313 and 315 of the Securities and Exchange Act by embezzling and siphoning off money by entering into four leasing agreements with an advance lease payment for 90 years.

The lease and premium for the advance payment was Bt956.84 million.

The plaintiff claimed that the advance payment exceeded the terms limited by law. Besides, Prachai and the other TPI (Thai Petrochemical Industry) executives were accused by the prosecutors of conducting an inappropriate act to seek benefits, as the landlord and the tenant are the same group of people.

The plaintiff filed the case on August 31, 2006, accusing Prachai and the other TPI executives of committing the wrongdoing from February 1, 1995 to May 1999 by entering the lease agreement with Pornchai Wisahakit Co. TPI leased the space, totalling 10,000 square metres, from Pornchai Wisahakit and agreed to make an advance payment for 90 years.

TPI agreed to pay the advance lease payment to Pornchai Wisahakit worth Bt877.303 million, as well as a premium worth Bt79.538 million.

The plaintiff claimed that the deal was not appropriate because the executives of TPI and Pornchai Wisahakit were the same group of people.

However, the court ruled yesterday that such actions are considered a normal business practice and that TPI shareholders had not been affected by the lease agreement.

Prachai said after the ruling that the charge had been raised during the previous government because of political motives.

"Today, I receive justice from the court," he said.

Suthas Ngernmuen, a lawyer for Prachai, said he was considering whether to file a countersuit against the plaintiffs.

TPI is now run by different management as IRPC.