Potjaman Shinawatra
Encyclopedia
Khunying Potjaman Na Pombejra , formerly Potjaman Shinawatra and born as Soypetpotjaman Damapong , (born: November 22, 1956), is the ex-wife of former Thai
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...

 Prime Minister
Prime Minister of Thailand
The Prime Minister of Thailand is the head of government of Thailand. The Prime Minister is also the chairman of the Cabinet of Thailand. The post has existed since the Revolution of 1932, when the country became a constitutional monarchy....

 Thaksin Shinawatra
Thaksin Shinawatra
Thaksin Shinawatra is a Thai businessman and politician, who was Prime Minister of Thailand from 2001 to 2006, when he was overthrown in a military coup....

. Potjaman played a key role in the development of Thaksin's commercial enterprises in the 1980s. After Thaksin was deposed by a military coup, the junta-appointed Assets Examination Committee accused her of irregularities in the purchase of government-owned land. However, the Bank of Thailand
Bank of Thailand
- History :The Bank of Thailand was first set up as the Thai National Banking Bureau. The Bank of Thailand Act was promulgated on 28 April 1942 vesting upon the Bank of Thailand the responsibility for all central banking functions...

, which supervised the sale of the land, claimed that the sale was conducted properly. The case is currently in court. She has one son, Panthongtae
Panthongtae Shinawatra
Panthongtae Shinawatra , nickname Oak, is the only son of former Thai Prime Minister Thaksin Shinawatra.He became a billionaire after having been given a large portion of his father's stock in Shin Corporation which transferred to him shortly before Thaksin ascended to the position of prime...

, a businessman, and two daughters, Pinthongta and Paetongtarn, both students.

Sale of Shin Corp

On January 23, 2006, the Shinawatra family sold their entire stake in Shin Corporation
Shin Corporation
Shin Corporation is one of the largest conglomerates in Thailand.- History :It was founded in 1983 as Shinawatra Computer by Thaksin Shinawatra, former Prime Minister of Thailand, and took on its current name in 1999, by using the first four letters of his last name...

 to Temasek Holdings
Temasek Holdings
Temasek Holdings is an investment company owned by the government of Singapore. With an international staff of 380 people, it manages a portfolio of about S$193 billion at end of March 2011, focused primarily in Asia...

. The Shinawatra and Damapong families netted about 73 billion baht tax-free from the sale, using a regulation that made individuals who sell shares on the stock exchange
Stock Exchange of Thailand
The Stock Exchange of Thailand is the national stock exchange of Thailand. It is located in Bangkok. As of 31 December 2007, the Stock Exchange of Thailand had 541 listed companies with a combined market capitalization of $280 billion. The indices of the stock exchange are SET Index, SET50 Index...

 exempt from capital gains tax
Capital gains tax
A capital gains tax is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property...

.

The Thailand Securities and Exchange Commission investigated the transaction and cleared the entire family from wrongdoing, except for Potjaman's son, Panthongtae
Panthongtae Shinawatra
Panthongtae Shinawatra , nickname Oak, is the only son of former Thai Prime Minister Thaksin Shinawatra.He became a billionaire after having been given a large portion of his father's stock in Shin Corporation which transferred to him shortly before Thaksin ascended to the position of prime...

. The SEC did find that Panthongtae committed minor infractions with regard to information disclosure and public tender offers in transactions between 2000 and 2002.
He was fined 6 million THB (about 150,000USD). Allegations of insider trading
Insider trading
Insider trading is the trading of a corporation's stock or other securities by individuals with potential access to non-public information about the company...

 by Potjaman, other Shinawatra family members, Shin Corporation
Shin Corporation
Shin Corporation is one of the largest conglomerates in Thailand.- History :It was founded in 1983 as Shinawatra Computer by Thaksin Shinawatra, former Prime Minister of Thailand, and took on its current name in 1999, by using the first four letters of his last name...

 Corp executives, and major shareholders were also investigated. No irregularities were found. On 21 September 2006, the Revenue Department sent a letter to the Shinawatras advising the Shinawatra family not to pay taxes on the transaction. Also in 2006, Revenue Department Director-General Sirot Sawadpanish testified to the military junta's Assets Examination Committee that the transaction was not taxable. The junta investigated Sirot and 6 other senior Ministry of Finance officials for their role in dispensing legal advice regarding the transaction. The AEC demanded that Potjaman testify to the Committee, and threatened to jail her if she did not.

Ratchadaphisek land purchase controversy

In January 2007, the Financial Institutions Development Fund complied with the Assets Examination Committee request to file a charge against Thaksin and his wife over their purchase of four 772 million baht plots of land from the FIDF in 2003. The charge was based on alleged violation of Section 100 of the National Counter Corruption Act, which specifies that government officials and their spouses are prohibited from entering into or having interests in contracts made with state agencies under their authorisation. However, Section 4 of the Act indicates that persons committing malfeasance must be direct supervisors of the damaged party - in this case, the FIDF. At the time, Bank of Thailand
Bank of Thailand
- History :The Bank of Thailand was first set up as the Thai National Banking Bureau. The Bank of Thailand Act was promulgated on 28 April 1942 vesting upon the Bank of Thailand the responsibility for all central banking functions...

 Governor Pridiyathorn Devakula
Pridiyathorn Devakula
Mom Rajawongse Pridiyathorn Devakula served as Minister of Finance in Thailand's interim civilian government. Before being named to the Cabinet of Prime Minister Surayud Chulanont, Pridiyathorn had served as Governor of the Bank of Thailand since 2001...

 directly supervised the FIDF, not Thaksin. Section 29 of the Bank of Thailand Act of 1942 stated that the Prime Minister did not have jurisdiction to oversee the FIDF, because those managing the fund had sole authority for policies, control, oversight and regulations governing the agency. Pridiyathorn's testimony to the court occurred in secret - Thaksin's legal team was not allowed in the room. The FIDF later noted that the land was sold to the Shinawatras at a price greater than its appraised value. The case went to the Supreme Court 10 July 2007.

Verdict

On 21 October 2008, the Supreme Court of Thailand's Criminal Division for Holders of Political Positions delivered a verdict
Verdict
In law, a verdict is the formal finding of fact made by a jury on matters or questions submitted to the jury by a judge. The term, from the Latin veredictum, literally means "to say the truth" and is derived from Middle English verdit, from Anglo-Norman: a compound of ver and dit In law, a verdict...

 on the Ratchadaphisek Land purchasing case, ruling that:

As Thaksin and wife defended themselves that the FIDF was not an administrative agency
Government agency
A government or state agency is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an intelligence agency. There is a notable variety of agency types...

 or state enterprise, and Thaksin, as the Prime Minister, had no powers and duties to supervise, scrutinise or monitor the Fund, resulting that the land purchasing case was not a conflict of interest
Conflict of interest
A conflict of interest occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other....

.

The Court: By unanimous resolution, holding that the Fund was the administrative agency under Section 100, Subsection (1), of the National Counter Corruption Organic Act, BE 2542 (1997). By 6:3, holding that Thaksin was a de facto supervisor of the Fund. By 7:2, holding that Potjaman was not a holder of political position or public authority prohibited under Section 122 of the Organic Act. And by unanimous resolution, holding that the purchased land and all other proprieties gained in this case could not be seized under Section 33, Subsection 1 and Subsection 2 of the Criminal Code.

Therefor, Thaksin was found guilty of abusing his power to help his wife purchasing the land at a knock-down price, being sentenced to two years in imprisonment. All accusations against Potjaman in the case shall lapse together with the arrest warrant whereof. However, as Thaksin was dwelling aboard, the arrest warrant was issued to bring him back to the domestic punishment.

Soon after the verdict was handed down, Thaksin gave a telephone interview to Reuters
Reuters
Reuters is a news agency headquartered in New York City. Until 2008 the Reuters news agency formed part of a British independent company, Reuters Group plc, which was also a provider of financial market data...

, stating he had expected the imprisonment term. He was quoted as remarking that "I have been informed of the result. I had long anticipated that it would turn out this way," and adding that the case was politically motivated.

Judgment

Thaksin Shinawatra
Thaksin Shinawatra
Thaksin Shinawatra is a Thai businessman and politician, who was Prime Minister of Thailand from 2001 to 2006, when he was overthrown in a military coup....

's wife Pojaman Shinawatra, 51, who was found guilty on July 31, 2008, and sentenced to 3 years imprisonment, was released on 5 million baht bail
Bail
Traditionally, bail is some form of property deposited or pledged to a court to persuade it to release a suspect from jail, on the understanding that the suspect will return for trial or forfeit the bail...

. Bangkok
Bangkok
Bangkok is the capital and largest urban area city in Thailand. It is known in Thai as Krung Thep Maha Nakhon or simply Krung Thep , meaning "city of angels." The full name of Bangkok is Krung Thep Mahanakhon Amon Rattanakosin Mahintharayutthaya Mahadilok Phop Noppharat Ratchathani Burirom...

 Criminal Court Judge Pramote Pipatpramote also convicted her adopted brother Bhanapot Damapong, and her secretary: "The three defendants have high economic and social status. But, they were working together to avoid taxes, even though the taxes amounted to little compared to their assets."

Request for asylum in Britain

On August 10, 2008, Thaksin and his wife Khunying Potjaman flew to London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

 from Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...

, where he had been attending the 2008 Summer Olympics Opening Ceremony
2008 Summer Olympics opening ceremony
The 2008 Summer Olympics opening ceremony was held at the Beijing National Stadium, also known as the Bird's Nest. It began at 8:00 pm China Standard Time on August 8, 2008, as 8 is considered to be a lucky number. The number 8 is associated with prosperity and confidence in Chinese culture...

. In doing so he violated the terms of his bail
Bail
Traditionally, bail is some form of property deposited or pledged to a court to persuade it to release a suspect from jail, on the understanding that the suspect will return for trial or forfeit the bail...

. Thaksin said that it was his wish to return to Thailand someday, but claimed it was not currently safe enough for him and his family. Thaksin announced his intention to seek political asylum in Britain
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

. His 3 children had reportedly flown ahead to Britain. Meanwhile, Thailand's Supreme Court issued an arrest warrant
Arrest warrant
An arrest warrant is a warrant issued by and on behalf of the state, which authorizes the arrest and detention of an individual.-Canada:Arrest warrants are issued by a judge or justice of the peace under the Criminal Code of Canada....

  for both Thaksin and his wife for jumping bail.

Thai Supreme Commander Gen. Boonsrang Niempradit and opposition leader Abhisit Vejjajiva
Abhisit Vejjajiva
Abhisit Vejjajiva , , ; born Mark Abhisit Vejjajiva; 3 August 1964 in Newcastle upon Tyne) is a Thai politician who was the 27th Prime Minister of Thailand from 2008 to 2011 and is the current leader of the Democrat Party...

 accused Thaksin of hurting Thailand and damaging its reputation: "His Majesty the King recognizes highly the importance of the judiciary … The public should follow him."

Arrest warrants

On September 17, Chief Justice
Chief Justice
The Chief Justice in many countries is the name for the presiding member of a Supreme Court in Commonwealth or other countries with an Anglo-Saxon justice system based on English common law, such as the Supreme Court of Canada, the Constitutional Court of South Africa, the Court of Final Appeal of...

 Thonglor Chom-ngarm and the judges unanimously postponed the reading of the verdict to October 21 at 2 pm, and issued the fresh arrest warrant for Thaksin and his wife, Pojaman.

Cancellation of UK visa

On November 10, 2008, the Department of Foreign Affairs (Philippines)
Department of Foreign Affairs (Philippines)
The Philippines' Department of Foreign Affairs is the executive department of the Philippine government tasked to contribute to the enhancement of national security and the protection of the territorial integrity and national sovereignty, to participate in the national endeavor of sustaining...

 Undersecretary Franklin Ebdalin stated "the government would 'politely' turn down any request for political refuge from the fugitive Thai leader, xxx due to Manila’s “friendly” relations with Bangkok
Bangkok
Bangkok is the capital and largest urban area city in Thailand. It is known in Thai as Krung Thep Maha Nakhon or simply Krung Thep , meaning "city of angels." The full name of Bangkok is Krung Thep Mahanakhon Amon Rattanakosin Mahintharayutthaya Mahadilok Phop Noppharat Ratchathani Burirom...

. If an applicant for political asylum insists, the first thing the friendly country customarily does is to send him back to his home country. The Department of Foreign Affairs had not received “feelers” that Thaksin wanted haven in the Philippines. Of course, he wouldn’t want to be embarrassed, that’s why I don’t think he would make such a request. He’s no ordinary figure. He’s a former prime minister of Thailand.” Amid Thai newspapers' reports that Thaksin may land in Manila
Manila
Manila is the capital of the Philippines. It is one of the sixteen cities forming Metro Manila.Manila is located on the eastern shores of Manila Bay and is bordered by Navotas and Caloocan to the north, Quezon City to the northeast, San Juan and Mandaluyong to the east, Makati on the southeast,...

, his brother-in-law, Somchai Wongsawat
Somchai Wongsawat
Somchai Wongsawat is a Thai politician, as well as former executive member of the People's Power Party whose political rights have been disfranchised by the Constitutional Court for five years....

, was set to arrive for a scheduled state visit
State visit
A state visit is a formal visit by a foreign head of state to another nation, at the invitation of that nation's head of state. State visits are the highest form of diplomatic contact between two nations, and are marked by ceremonial pomp and diplomatic protocol. In parliamentary democracies, heads...

 on November 10 with Gloria Macapagal-Arroyo
Gloria Macapagal-Arroyo
Gloria Macapagal-Arroyo is a Filipino politician who served as the 14th President of the Philippines from 2001 to 2010, as the 12th Vice President of the Philippines from 1998 to 2001, and is currently a member of the House of Representatives representing the 2nd District of Pampanga...

 (bilateral meeting on regional global financial crisis).

The British Government Home Office
Home Office
The Home Office is the United Kingdom government department responsible for immigration control, security, and order. As such it is responsible for the police, UK Border Agency, and the Security Service . It is also in charge of government policy on security-related issues such as drugs,...

, the United Kingdom Border Agency revoked Potjaman Shinawatra and Thaksin's visas
Visa (document)
A visa is a document showing that a person is authorized to enter the territory for which it was issued, subject to permission of an immigration official at the time of actual entry. The authorization may be a document, but more commonly it is a stamp endorsed in the applicant's passport...

, while the Bangkok
Bangkok
Bangkok is the capital and largest urban area city in Thailand. It is known in Thai as Krung Thep Maha Nakhon or simply Krung Thep , meaning "city of angels." The full name of Bangkok is Krung Thep Mahanakhon Amon Rattanakosin Mahintharayutthaya Mahadilok Phop Noppharat Ratchathani Burirom...

 British Embassy e-mailed airlines advisory directing them to disallow Thaksin, 59, or his wife Potjaman, 51, both thought currently to be in China, from boarding flights to Britain. But Thaksin's spokesman, Phongthep Thepkanjana, said: "I spoke with Thaksin's secretary and he said that Thaksin still had not been notified by the British government." Thaksin was reported to be travelling in East Asia
East Asia
East Asia or Eastern Asia is a subregion of Asia that can be defined in either geographical or cultural terms...

, having been forced to look for a home. Thaksin still remains honorary president of the Manchester City Football Club, which he sold in August. Thaksin had considered sanctuaries such as China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

, the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...

 and the Bahamas. The Times
The Times
The Times is a British daily national newspaper, first published in London in 1785 under the title The Daily Universal Register . The Times and its sister paper The Sunday Times are published by Times Newspapers Limited, a subsidiary since 1981 of News International...

 reported the Thaksins were granted Bahamas honorary citizenship and the couple are building a £5.5 million home in China. The visa revocation rendered moot the UK extradition
Extradition
Extradition is the official process whereby one nation or state surrenders a suspected or convicted criminal to another nation or state. Between nation states, extradition is regulated by treaties...

 issue, but Thai prosecutors complained "it would now be harder to keep track of him, and he could end up in a country with which Thailand does not have an extradition treaty." Somchai Wongsawat
Somchai Wongsawat
Somchai Wongsawat is a Thai politician, as well as former executive member of the People's Power Party whose political rights have been disfranchised by the Constitutional Court for five years....

 said: “The revoking of the visas is the decision by the Government of Great Britain. We cannot criticise.”

Meanwhile, Thaksin's attorney, Udom Prongfa filed a counter-charge against Veera Somkwamkid with the Crime Suppression Division (CSD): "Mr Veera went ahead and filed the charge even after the Royal Thai Police Office had concluded Mr Thaksin had done nothing wrong." Also, thousands of Thaksin supporters at the stadium gathered and claimed that only "royal kindness or the power of the people" could bring him home.

Extradition

Sirisak Tiypan, director general for international affairs of the Office of the Attorney General, said: "No matter China or the Philippines, we have an extradition treaty with both countries." Thaksin may appeal the guilty verdict until November 22 but prosecutors are working on extradition
Extradition
Extradition is the official process whereby one nation or state surrenders a suspected or convicted criminal to another nation or state. Between nation states, extradition is regulated by treaties...

 documents. Sirisak added "that even if Thaksin decides to live in a country with which Thailand has no extradition treaty, authorities could ask for him to be handed over on a reciprocal basis." Bahamas, Bermuda
Bermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...

 and Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...

n countries without extradition treaties with Thailand have reportedly offered to take in Thaksin and his wife.

Transferring Shares to children who reached maturity

There has been a controversy on whether there is any hidden interest when Thaksin and Potjamn transferred their Shin Corp. shares to their children. Panthongtae and Pinthongtharn Shinawatra were accused of being nominees of their parents.
Potjamn transferred her shares to Parnthongtae was said to have been a setup. For Panthongtae’s case, the shares have been sold to him at cost price. Prior the transfer, Panthongtae had written an agreement to settle a ฿4.5billion baht debt for buying 300 million shares of Thai Military Bank
TMB Bank
TMB Bank, formally known as The Thai Military Bank, is one of the largest retail banks in Thailand. It is listed on the Stock Exchange of Thailand on ....

(TMB) to Potjaman. In which the real value of TMB share at that time was ฿1.5billion baht. This means that there has been a “fake debt” worth of ฿3billion baht.

The Assets Examination Committee (AEC) later revealed that Panthongtae’s account that receives Shin Corp. dividend has been transferring money to Potjamn’s account exceeds the debt to ฿1.1Billion baht.

Pintongtha was accused of being another nominee of her parents. In response to the accusation, she said that her mother gave her a certain amount of money to buy Shin Corp. shares from her brother, Panthongtae. Potjamn gave money to he daughter to buy 367 million shares of Shin Corp. which leaves Panthongtae an equal amount of shares. Pintongtha's account has been receiving dividend from Shin Corp and there has not been any transaction between Pintongtha’s account and Potjamn’s account. However, the money was used to buy SC Asset shares from WinMark worth of ฿71 million baht and buy shares from another 5 real-estate firms from 2 funds in 2004 worth of ฿485 million baht.

DSI, AEC, and Securities and Exchange Commission later revealed common information that WinMark and the two funds are owned by Thaksin and Potjamn Shinawatra. Potjaman responded the accusation that she did not own Winmark, neither her husband. The company is however owned by a real-estate firm from the middle east.

Transferring to relatives

Bannapot Damapong, Potjaman Shinawatra’s brother-in law, was charged with wealth concealing of Shin Cop. Shares. Bannapot, co-founder of Shin Corp., was believed to own 1.62% of the company’s shares right from the beginning when the company turned public. Howeverm 10.75% was accused of being a nominee to Potjaman Shinawatra. The 10.75% is the separated into two sections. The first section worth of 1.62%, Bannapot used Potjaman’s money to buy the shares to increase his holdings. The 9.13% leftover was accused as being a fraud. The transaction made it look like that Bannapot was buying shares from Potjaman. But the promissory note for buying the shares was accused of being made up after the incident as the name of Potjaman was stated as “Lady Potjaman” where at the time of the transaction; her status was not yet a lady.
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