Thai party chief in corruption probe

Thailand is trying to eliminate corruption from politics

By South East Asia correspondent Simon Ingram

The politician widely tipped to be the next prime minister of Thailand is to be investigated on possible corruption charges.

The National Counter Corruption Commission is setting up a panel to investigate the affairs of Thaksin Shinawatra, a billionaire telecommunications tycoon who heads the Thai Rak Thai Party.

Prime Minister Chuan has to call an election by November

It will investigate share transfers worth millions of dollars which Mr Thaksin made to his relatives and personal staff.

Local media reports say the total value of the shares came to more than $260m.

It is an irony lost on few observers that the man now under investigation on possible corruption charges is running for high office on a pledge to clean up Thailand's traditionally murky political scene.

The populist party he founded and leads, Thai Rak Thai (Thais Love Thais), is widely expected to win the largest number of votes when parliamentary elections are held within the next three months.

But Mr Thaksin's own hopes of becoming prime minister seem to have suffered a blow.

Conspiracy

At issue are allegations that on becoming a cabinet minister in the 1990s, he tried to conceal some of his vast wealth by transferring large numbers of shares into the names of members of his domestic entourage, including his housekeeper, maid and driver.

Mr Thaksin has stoutly denied any wrongdoing. He told supporters at a rally on Monday that he was ready to defend himself and accused his political enemies of concocting a conspiracy to undermine his chances of taking the premiership.

The looming scandal could hardly have been better timed for the Prime Minister Chuan Leekpai.

His shaky coalition government experienced a strikingly similar embarrassment earlier this year, when the then interior minister, Sanan Kachorn Prasart, was forced to resign after being found guilty by the counter-corruption commission of concealing some of his personal assets.

If Mr Thaksin is found guilty of false declarations he could be banned from politics for five years.