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Saturday, December 15, 2007

Court's ruling on the PTT's privatisation

Thailand - Official translation of the Supreme Administrative Court's ruling on the PTT privatization case

Panel of judges of the Supreme Administrative Court made known today (December 14th, 2007) its ruling on the PTT privatization case which opposes the Foundation for Consumers to the Cabinet, the Prime minister, the Minister in charge of Energy and the PTT plc. The plaintiffs claimed that the PTT privatization procedure is unlawful as it didn't respect the formailities prescribed in the Law of 1999 on the State Entreprise Corporatisation. The Supreme Administrative Court has to consider whether the PTT privatization procedure was unlawful as alleged by the plaintiffs and whether the Royal Decree determining the powers, rights and assets of PTT plc and the Royal Decree transforming PTT as a State enterprise into a public company are lawful.

On the first question, the Supreme Administrative Court considers that there is no illegality in the privatization procedure because there is no conflict of interests of the two members of the Committee in charge of overseeing the privatization. The court also deems legal the public hearing process as the advertisement prior to it has been sufficiently made in the local presses which have large national coverage both in Thai and in English.

As for the legality of the Royal Decree determining the powers, rights and assets of PTT plc and the Royal Decree transforming PTT as a State enterprise into a public company, the court considers that the gas transmission pipelines system and the land attached to it as well as the right of way are public domain. The PTT as a state enterprise according to the Law of 1978 on the Petroleum Authority of Thailand could possess this public domain as well as state power necessary for its functioning. The PTT as a public company is not entitled to hold this public domain and cannot exercice state power . Consequently the Cabinet must transfer the public domain comprising of the gas transmission pipelines system and the land attached to it as well as the right of way to the Ministry of Finance and must not entitle to PTT plc to exercice state power. In neglecting to do so, article 4 paragraph 2 of the Royal Decree determining the powers, rights and assets of PTT plc is unlawful and should, by way of consequence, affect the legality of the Royal Decree transforming PTT as a State enterprise into a public company. Nontheless the court is of the opinion that annulling the Royal Decree transforming PTT as a State enterprise into a public company would entail a forced delisting of PTT plc from the Stock Exchange of Thailand and would cause a great jeopardy to the financial, social and security state of the country. And as this illegality can be corrected, the Court, therefore, rules that the Cabinet, the Prime minister, the Minister in charge of Energy and PTT plc must do what is necessary to transfer the public domain comprising of the gas transmission pipelines system and the land attached to it as well as the right of way to the Ministry of Finance . The Court also rejects the plaintiffs's request to annul the the Royal Decree determining the powers, rights and assets of PTT plc and the Royal Decree transforming PTT as a State enterprise into a public company.

Secretariat General of the Administrative Courts.

The Nation

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