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Monday, March 7, 2011

PM to be grilled over tobacco firm role


The Pheu Thai Party plans to grill Prime Minister Abhisit Vejjajiva for allegedly meddling in an effort to help an international tobacco company evade Bt68 billion in import tariffs between 2003 and 2007.

"One of the censure and impeachment charges against Abhisit is his inteference in the legal proceedings in a tax evasion case involving Philip Morris (Thailand) Limited," party deputy spokesman Yuthapong Jarassathian said yesterday.

Yuthapong alleged that Abhisit intervened in the prosecution review, resulting in the dropping of charges against the company.

Despite his image as "Mr Clean", Abhisit allegedly instructed his close aide, known by the initial K, to exert influence on the company's behalf, prompting speculation about kickbacks being paid to a foreign bank account, Yuthapong claimed.

He also voiced suspicion that certain companies became big donors to the Democrat Party. These companies would pay Bt2 million in a fund raising dinner for the Democrats, scheduled for tomorrow, he said.

The Philip Morris case came to light after the Excise Department asked the Department of Special Investigation (DSI) to probe what it claimed was the company's illegal trade practice of undervaluing its cigarettes in order to avoid paying high import tariffs.

The DSI forwarded its September report to the Office of the Attorney-General recommending the case go to trial.

The opposition said the secretariat of the prime minister issued an urgent instruction for the DSI, the public prosecutors and the Excise Department to review the proceedings against the tobacco company.

The instruction took place four days after the public prosecutors received the DSI report.

Following the instruction, Thai trade representative Kiarti Sitthi-amorn called the attention of relevant agencies to the decision by the World Trade Organisation's Dispute Settlement Body related to the trade dispute between Thailand and the Philippines.

The opposition has yet to clarify how and why the instruction had a direct bearing on the tax evasion case.

DSI director-general Tharit Pengdit said public prosecutors notified him last week about dropping charges against the company.

"I have to study the prosecution report before deciding whether to oppose the decision not to try the company," he said.

Under trial procedures, if the DSI and the public prosecutors have differing opinions, the attorney-general will have the final say on whether to try the case.

source: www.nationmultimedia.com

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