THAILAND: Ethics at heart of furore over Thaksin

Shin-Temasek deal may be legal but it is PM's attitude that rankles, critics say

Straits Times
Wednesday, February 8, 2006

By Nirmal Ghosh

Bangkok --- The controversy over the Shin Corp-Temasek Holdings deal is largely centred on morality and ethics -- going to the heart of a culture steeped in Buddhism.

Most analysts acknowledge that the deal is legal -- except for a possible earlier disclosure and tender offer rule violation by Mr Thaksin Shinawatra's son Panthongtae in relation to his shares in the British Virgin Islands-registered Ample Rich Investments.

What they question is its ethics -- and the Prime Minister's attitude to it.

"At heart are issues of capitalism, nationalism and globalisation," says Dr Somkiat Tangkitvanich of the independent think-tank Thailand Development Research Institute.

In Thailand, while materialism is embraced on an everyday level, it is the individuals who reject materialism who are most respected. Buddhist monks -- even those who are ordained for a short while -- are granted the highest respect while senior monks are venerated, with some having followers in the millions. Teachers -- generally not a rich class of people -- are also given a high degree of respect.

And while public figures and leaders who reject wealth and materialism may not do well all the time during elections, they are respected by ordinary Thais.

Ex-prime minister Chuan Leekpai of the Democrat Party, criticised for having drifted during his tenure, commands respect because of his personal integrity.

General Chamlong Srimuang, once Mr Thaksin's political mentor who led hundreds of thousands in street protests to topple the un-elected premier General Suchinda Kraprayoon in 1992, is respected for his austerity.

"Foreigners may have difficulty in understanding why Thais are so upset," Dr Somkiat said at a seminar on the Shin-Temasek deal earlier this week.

"At the core is the issue of ethics. In Thai society, it is very clear that rulers should have high ethical standards; it is in the Buddhist tradition.

"A ruler must show charity and generosity. He must have high moral character. He must be willing to self-sacrifice. He must have honesty and integrity. He must be kind and gentle. He must be austere and able to practise self-control.

"He must not indulge in anger, violence and oppression. He must have patience and forbearance and not deviate from the law."

Mr Thaksin, Thailand's billionaire Prime Minister, fulfilled none of these conditions, he said.

Thus Mr Thaksin, whose family walked away from the Temasek deal with 73 billion baht (S$3 billion) tax-free, represents a new kind of person in power, contradicting the idealistic notion of the wise, statesman-like leader immune to worldly temptations, vices and materialism.

He is also at ease in the world of global business deals. But while many Thais have regional and global interests, Mr Thaksin is no ordinary businessman -- he is the Premier, and Thais, still adapting to the pressures and currents of a globalised world, expect more from a person in that role, critics say.

Democrat Party MP Korn Chatikavanij says lawfully avoiding paying tax is "a legal right for businessmen...But the Thai public is asking if it is the moral right of the PM to do the same."

Chulalongkorn University political science professor Thitinan Pongsudhirak points to Mr Thaksin's abrasive reaction to criticism. "His antagonism -- the catch-me-if-you-can attitude, his statement that critics are jealous of his wealth -- does not help his cause," Prof Thitinan said.

Date Posted: 2/8/2006