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Ousted PM Thaksin Shinawatra Investigated Over THAI’s Debt

The former Prime Minister Thaksin Shinawatra is under investigation after the National Anti-Corruption Commission (NACC) launched a probe into his decision to authorize Thai Airways International Plc (THAI)’s to purchase Airbus aircraft more than fifteen years ago.

Mr. Thaksin’s decision to approve THAI’s plan, valued at more than 53 billion baht back then, reportedly resulted in huge losses.

Niwatchai Kasemmongkol, NACC’s deputy secretary-general, said the commission had established a nine-member panel to investigate the actions of the fugitive prime minister, who approved multiple Airbus A340-500 and A340-60’s purchases between 2002 and 2004, plunging the airline into debt.

Four other people are suspected of being involved in the controversial decision, Mr. Niwatchai said.

According to an Isra News Agency report, they are Industry Minister Suriya Jungrungreangkij, transport minister back then, former deputy transport minister Phichet Sathirachawal, former THAI president Kanok Abhiradee, and former THAI board chairman Thanong Bidaya.

THAI’s 53.5-billion-worth plan to acquire ten aircraft between 2002 and 2004 was submitted by Mr. Suriya.

The Transport Ministry also referred to the A340-500 aircraft’s purchase in a report by an investigative panel, led by Pol Lt Gen Charnthep Sesawet and created on August 28, to investigate corruption allegations against THAI.

The report noted that the airline’s financial losses resulted from the purchase, which was carried out under 2003-2004 procurement plan.

The planes were in service between July 2005 and January 7, 2013, on Bangkok-New York, Bangkok-Los Angeles and 49 other routes. However, THAI ended up suffering 39.8 billion baht in losses on all routes, the report added.

Flights on the Bangkok-New York and Bangkok-Los Angeles routes recorded losses of over 12.4 billion baht, as Airbus A340-500 and A340-600 were designed for long-haul flights and consumed enormous amounts of fuel but had few seats.

The plan was also unprofitable because the aircraft were in use for only 6-10 years, more than half below the general threshold of 20 years of service, the report stated.

While the aircraft in question are out of service and THAI expects to sell them, the company also suffered impairment losses of more than 22.9 billion baht.

Mr. Thaksin had faced legal disputes before, including the Ratchadaphisek land purchase case. He was also sentenced in absentia to two years in jail by the Supreme Court’s Criminal Division for Holders of Political Positions for violating the National Counter-Corruption Act.

NACC’s decision to investigate the aircraft purchase comes amid Mr. Thaksin’s criticism against the current government through the Clubhouse app under the alias Tony Woodsome. He has criticized Mr. Prayut Chan-o-cha’s government for mishandling the health crisis, economic problems, and other issues.