Thaksin vows to sue Bangkok over frozen assets -FT

SINGAPORE | Friday, Jun 22 2007 07:23:07 IST

Deposed Thai Prime Minister Thaksin Shinawatra plans to sue the military
government for the return of the 1.8 billion dollar of assets frozen by
anti-graft investigators, the Financial Times said today.

”It’s my money; my family money,” he told the newspaper in an interview in London.
”They have no right to take it. We will sue them anyway. We have to
sue, otherwise we cannot get our money back.” Thaksin, who was ousted
in a September coup by generals accusing him of running a corrupt
government, said he had retired from politics and would return to
Bangkok as a private citizen, ”but not now”.

Thai state
prosecutors on Thursday formally charged Thaksin with ”official
misconduct” relating to his wife’s purchase of a prime piece of
Bangkok real estate.

The move came on the same day Manchester
City said the English Premier League soccer club was backing an 81.6
million pound (162.6 million dollar) takeover bid led by Thaksin.

Thaksin, who has been living in London since the coup, said he was not
worried about his personal safety but he was concerned about the
potential for clashes between the military and the public were he to

Asked how he could pursue the military government for
the return of assets if he was not in Thailand, Thaksin said his wife
and children would fight the case.

— (Reuters) —

FT Home

Thaksin to sue Thai junta over assets

By Roger Blitz in London and Amy Kazmin in Bangkok

Published: June 21 2007 09:20 | Last updated: June 21 2007 12:50

Thaksin Shinawatra, the deposed Thai
prime minister, on Thursday said he would sue the Thai military
government for the return of the Bt57bn ($1.8bn) of his assets frozen
by anti-graft investigators, adding he would not receive justice if he
returned to Bangkok to face corruption charges.

Mr Thaksin, who
on Thursday formally made an £81.6m ($163m) bid for Manchester City,
the UK football club, said in a Financial Times interview
in London that he remained retired from Thai politics and there was no
reason for Thai authorities to fear him. He planned to go back to
Bangkok as a private citizen, he said, “definitely, but not now”.

Manchester City deal was unveiled just hours after Thai prosecutors
formally charged Mr Thaksin and his wife, Pojamarn, with improprieties
in her 2003 acquisition of a piece of prime Bangkok property from a
fund supervised by the Thai central bank.

Seksan Bangsomboon, the
state prosecutor, said Mr Thaksin was charged with “abuse of power in
that he acted for personal gain, and violated anti-corruption laws”.

Mr Thaksin, who has been in exile since the bloodless coup in
September, said “the rules of the game” had been set by the military

“You know immediately you don’t get the justice. When
you don’t have justice you have to take some time before you ensure you
have justice.”

While not worried about his personal safety, Mr
Thaksin said he was concerned about the potential for clashes between
the military and the public were he to return.

military-installed government has been aggressively stepping up its
efforts to destroy Mr Thaksin’s political and financial support base in
recent weeks, as it moves closer to a self-imposed end-of-the-year
deadline for holding fresh elections and transferring power to an
elected government.

Mr Thaksin claimed the corruption charges
levelled against him were politically motivated.
He said: “It’s my family money. They have no right to take it. We will
sue them.” The assets seized were mainly in the names of his wife and
children, and his wife, who remains in Thailand, would take up the
legal case on the family’s behalf, he said.

Thaksin, who founded Thailand’s largest telecommunications empire
before entering politics, said he declared more than $2bn of assets
when he entered politics in 1994.

He said most of the assets he
held outside Thailand were from dividends and share sales. Asked how
much that was, he said: “Not much. Because I love Thailand so much,
instead of selling shares outside Thailand I sell in Thailand.”

seizure of assets had caused him difficulty over the Manchester City
deal, he added, “but I can handle it, because I have friends and credit
with friends worldwide”.

The assets to buy the club were private, he stressed. The UK had a process for ensuring company takeover funds were clean.

Transcript: Thaksin Shinawatra

Published: June 21 2007 20:42 | Last updated: June 21 2007 20:42

Blitz, the FT’s leisure industries correspondent, interviewed Thaksin
Shinawatra, the exiled former Thai prime minister who on Thursday
agreed to buy UK football club Manchester City for £81.6m ($163m) hours
after he was charged by Thai prosecutors of corruption. The following
is an edited transcript of the interview.

FT: How many times have you watched Manchester City?

Shinawatra: I haven’t watched myself, in the stadium, but I watched it
several times in the television in Thailand and here.

FT: But you know how well they’re doing in the last season?

TS: Yeah, they are a very, very good club and a big club, which I like. But the team, we have a lot of room to improve.

FT: Lots of room to improve?

TS: Yes, I think so. I talk to many of my football experts, friends. They all agree that we can improve a lot.

FT: Have you been to the stadium?

TS: Yes, I have been into the stadium twice.

FT: You’re impressed?

TS: Yes, very impressed, wow. A big stadium, beautiful and well designed.

FT: And obviously the fans and the supporters there, are very, very excited?

TS: Yes. That’s the value of the club, that’s the fans supporting in Manchester especially and in Asia.

FT: And in Asia?

TS: Yes, especially China, because we have the player from China, Sun Jihai.

FT: Of course.

TS: The Chinese people, they know Manchester City very well.

FT: The Chinese people?

TS: Yes.

FT: What about in Thailand? Do they know about it?

TS: Oh,
yes. All the Asian people know all the Premier Leagues. And when
Manchester City is one of the very old established and large clubs,
then they’ve been followed and they have friends in Asia as well.

FT: It is a fantastic passion for Premier League Football in Thailand.

TS: Yes,
very much. You know, I’ve experienced this during my business times,
because we had to buy the rights, because I had a cable TV business. I
had to buy right of Premier League and FA Cup to show on cable TV.
Sometimes we had to compete with the commercial TV to get the rights.

FT: And you know how much the rights are worth now?

TS: Oh, yes, much more. During my time, during business life, it kept getting more expensive every year.

You will be the chairman. How active are you going to be as a chairman?
You obviously have Alistair Macintosh staying as chief executive.

TS: Yes.
We have to have chief executive definitely. I will be giving the vision
and approve the strategy how to bring the club forward and also how we
can bring the club into the hearts and minds of fans, especially in
Asia as well.

FT: Could you just outline some of the strategy, some of your thinking?

TS: Well,
definitely we will improve the club, bring in a new coach, bring new
players and improve all the facilities that we need. That’s in the very
beginning. And after that I’m thinking about how we can have a
Manchester City presence worldwide. Not just through the television

We might have academies in different parts of the
world. And after the academies we might have the team. For example, we
might have Manchester City China, Manchester City South Asia,
Manchester City Middle East, Manchester City in Africa, or in Latin
America. Then finally we will attract the good players in each region
and bring them together to form the Manchester City of that region

And then we might have a league between them. Whoever
wins will play with the Manchester City first team. So we can attract
good players worldwide, to the Manchester City in the future.

FT: Does that mean buying up clubs in other leagues around the world?

TS: Instead of buying, we probably have to build our own.

FT: Build your own?

TS: Yes.
It will be step by step. We may not do everything at the same time.
This is the vision, that we would bring talented player from all over
the world, through setting up, long term, that academy. Short term;
attract the good player in that region to form the Manchester City of
that region team.

FT: That would take many years, would it not?

TS: Well, normally I don’t want to wait that long, three years maybe.

FT: Three years?

TS: Yeah, maybe talking about three years.

FT: And more immediately, you obviously need to improve the players in the team?

TS: Oh, yes, that’s an immediate plan.

FT: And how much can you say to the manager and the chief executive that will be available for them to spend on players?

TS: Well, you know when you start to invest this much money, you never want it to go down.

FT: You never want it to go down?

TS: Yes.
You know, how much we spend. If needed, we have to support it. We are
not just in a buying spree, spend everything, that’s not going to be
the way we do it. But we will spend as much as we need. If we need 20,
30, 40 [million pounds] it depends on how much we really need it.

FT: Right and you have no worries about being able to afford this?

TS: No.

FT: This is not something that’s going to make you lose sleep?

TS: Well,
we have to have the reason why we spend this much money. Business
reason and at the same time reputation of the club as well.

FT: You were interested in Liverpool before, is that right?

TS: Yes.

FT: Things didn’t work out.

TS: No.

FT: But have you been looking at other clubs?

TS: Well,
I’m interested to participate in the Premier League. But I’m not
interested in some other clubs. But when Manchester City come across, I
think this is a good club that I want to have. So I’m working with
Keith [Harris, financial adviser from Seymour Pierce] and then we work
very hard to get the club. I have to thank John Wardle [Manchester City
chairman] for his generosity to allow me to land this club.

Is there something particular about Manchester City? Obviously, it’s a
very different club from Liverpool in terms of success.

TS: Yes.

But is there something very different about or particular about
Manchester City, perhaps a club that is struggling in the league and
you can build it?

TS: Well,
if you look at the club itself, it’s quite a big one and really 100
years old. And also the support of the fans in Manchester City is very
strong. So this is a good club that we should put our efforts bringing
it forward.

TS: Is it a benefit, or a slight disadvantage that the club does not own the stadium?

TS: Well,
it’s an advantage and a disadvantage. If it were to own it, it’d
probably have a lot of debt. If it does not own it, in this part you
don’t have debt, but you have the commitment to pay in future, to pay
the rental in the future…

And I talk to my friend and he ask me
how serious are you going to be with this club? I said well, this
stadium is 250 years [rental] contract, only four years past, 246 years
left. Tell everyone, don’t do the contract extension, I will do it
myself next time!

FT: You obviously want
to also not just develop the academies around the world as you say, but
to market the club as well. You’ll be spending money on…?

TS: That’s
another part that I have to do very carefully, look at all the
contracts and the legal binding with other partners. And the name of
Manchester City itself, it’s quite strong if you were to market it
right. And it will be attracting fans in other sectors, by having
merchandise that is good quality, not expensive. And when they use it
they feel, oh okay, they have Manchester City with them. And in the
future they will become a fan of the football club. So, fan for the
football club itself and fan of the product. And then, it becomes fan
of the whole club. And that’s what I think, if in the future,
especially with the relationship with then Chinese market, then, it’s
very important, especially in Asia and the Middle East.

FT: Are you worried about confusion in marketing terms with Manchester United, which obviously is much more well known?

TS: No,
it’s clear, Manchester City and Manchester United. And the colour
itself is different… But anyway, we have to our own segment on

FT: How close are you to being able to appoint a manager?

TS: My advisors is now working on it. I let the experts do it. I just give them consent.

FT: It’s been suggested that you, yourself, favour Sven Goran-Eriksson as your first choice.

TS: Well,
he is one person that has talents and is a good man, very reputable.
But I leave it to my experts so I don’t know yet when they can draw the

FT: Will you want to have the final say as to who it’s going to be?

TS: Well, normally the final say is probably about 90 per cent from my advisors and then I just give the consent.

There has been a lot of talk about the freezing of the assets in
Thailand and whether this would affect the purchase. Clearly it has
not. You’ve been able to separate this?

come from a democratically elected government and been overthrown by a
military junta. And the committee that set up the law they use is
really under the dictatorship and military control government. And
everything is politically motivated. …British people… should understand
this very well, that this is truly politically motivated. And we should
be able to handle this, especially after democracy returns to Thailand
in December. But I’m not worried about it. How can I corrupt my own
money that the whole family has been working hard for, for more than 20

FT: It has caused you difficulty in this deal?

TS: Oh, yeah, definitely, but I can handle it, because I have credit with friends worldwide. So I should be able to handle things.

FT: Are the assets themselves… could you just describe… these are private assets that you used to buy the club?

TS: Yes.
You know, you have the process here. The UK has a very good system.
Sometimes I feel a bit uncomfortable being asked too much. But anyway,
it’s a very good system, especially the client acceptance procedures to
clear that you have sufficient funds – is it clean? So this is a very
good system; that is proved already by the two financial agencies that
represent Manchester City and represent myself, and also the authority.
So the money has been drawn from the money that my family sold shares
in the company that we found.

FT: And
have you sought assurances from either government authorities or from
the Premier League that your purchase of Manchester City is, in their
view, perfectly acceptable, and that…?

TS: Yes.
We have gone through that. That’s the reason why it’s a bit slow in the
process, because we have gone through a lot of difficulties to prove
it… and everything.

FT: And can you just
help me with these charges? The Thai authorities want you to return to
Bangkok, and they’ve put a date of next week. Are you planning to go

TS: I’m planning to
go back definitely, but not now. But, you know, everything… the laws of
the game…have been set by the military junta. So you know immediately
you don’t get the justice. When you don’t have the justice, you have to
take some time before you go in until you ensure that you will have the

FT: Would you be worried by your personal safety if you were to return?

TS: No, I’m not worried.

FT: Right.

TS: I’m
not worried. I know that many people worry about my safety, and what
I’m worried is I don’t want the confrontations among the Thai people,
the public and the military, because I don’t want the Thai military to
take very strong measures to the Thai innocent people who seek
democracy; who are crying for democracy. That is not good for the
country. That is the reason why I have to sacrifice by staying abroad
for nine months already.

So actually, I should go back home,
but I don’t want to see this to happen, because this is the first time
in Thai history that the military junta’s overthrown the government
that comes from the people, and is still very, very popular. So that’s
why the conflict is still there, because the people like the
government; the military said no, you are too strong, better go. So
that is something that has never happened before in Thailand.

FT: Am I right in saying that you said after September that you had retired from Thai politics?

TS: Yes, yes.

FT: And is that still the case?

TS: Yes,
yes. I retire already, completely. Even they are not sure I am retired,
they ban me from politics for five years. So don’t worry, I am retired
already. Now I find myself a job as a chairman. [Laughter].

FT: So you obviously have a desire to return, but you want to return as a private citizen?

TS: As a private citizen under a democracy.

You obviously have a desire to see democracy restored in Thailand, but
this is not something you want to campaign for actively.

TS: No,
no, no. I’m trying to stay away from politics. Let the people in
Thailand, who the majority of them, almost 99.99 per cent want
democracy, is asking for it and crying for it, and then they will get
democracy back in December.

FT: And
there has been some talk amongst some academics who see that your
acquisition of a Premier League football club is in some way a way to
reconnect with the people of Thailand in order to maintain your
popularity in Thailand. Is there anything in this?

TS: t
think so. If I were to be popular, it’s because of what I have done; a
good thing for the country; a good thing for the people and the
monarch. But, you know, buying a football club is something that I
really dreamed for for many years.

FT: But you obviously have financial interests in Thailand. You obviously want to see all that restored to you.

TS: Yeah,
definitely. It’s my money; my family money. They have no right to take
it. We will sue them anyway. We have to sue, otherwise we cannot get
our money back; because it’s my money. It’s our money.

FT: But if you are going to get your money back, you accept you have to go through a court process?

TS: Yes.

FT: How will you do that if you don’t return to the country?

TS: Well, the majority of the asset belongs to my children and my wife. I have very little.

FT: What, are you suggesting they might go back?

TS: My wife, most of the time, she stays in Thailand.

FT: Right. So she will fight the case on your behalf?

TS: Oh yes, she will fight the case, and my children will fight the case.

FT: Right. And your children are… are they here and in Thailand?

TS: Only one here goes to school. She goes to school.

FT: But you will seek to find, through your wife and other representatives, ways of challenging the courts?

TS: Oh yes, we have to do it.

FT: Have you set up a process for being represented when these cases are heard in Bangkok?

TS: I think our lawyers are prepared.

Could I just come back to the issue of the private assets, because
presumably the Thai authorities will want to have some kind of evidence
that this is money separated from the assets that they’ve frozen.

TS: Actually
you know, they have no right to freeze my assets at all, because it’s
the assets that the family working for over 20 years. In 1994, 13 years
ago when I entered politics as a minister of foreign affairs, … I
voluntarily declared my assets. And all the Thais know very well that
at that time I have over $2bn already. That is in 1994. And then I went
into politics briefly and only had five days as minister of foreign
affairs, and I also appeared in Forbes magazines [showing] that my net
worth is over $2bn. That’s before politics. How can they freeze my

FT: They’re freezing about $2bn?

TS: Yes, yes. The same sort of asset; that is the asset that belongs to… the shares that belong to my family.

FT: Can I ask what the price of the…?

TS: The stock? The shares have gone up, yeah.

FT: Right. But can I ask what assets you have outside of Thailand?

TS: Most
of the assets that I have outside Thailand are the assets come from
dividend, or the sale of the shares. That’s all. I don’t have other
source of income. That’s it.

FT: Could you help us with how much that is?

TS: Not much; not much. Because I love Thailand so much, instead of selling shares outside Thailand, I sell in Thailand.

FT: Can I just come back to the club? Do you feel an urgent need to spend money on players now?

TS: There might be some part of it, yeah. We have already committed the money for it.

FT: And we can expect to see some activity in the next few weeks?

TS: Oh yes, definitely; definitely. We have not got much time. We don’t have much time. We are a bit late to come to the conclusion.

Do you have a target where you want to see the club in the table in the
next year or two? I mean, everybody says they could win the League, but…

TS: Well, I can dream, but it’s not easy. I can dream. [Laughs]. But anyway, we are moving the club forward, definitely.

And I’m interested whether you know of other investors from Asia who
are interested in Premier League clubs. Do you think that you are part
of a growing interest from private investors from South East Asia?

think from there, there will be more Asians who might have interest in
some other clubs. I don’t know. [There are] many rich Asians.

FT: And the Chinese market is the market that’s very important.

TS: China is important. Middle East is important. And even South East Asia as well.

FT: And do you feel that your model about academies, have you seen that elsewhere in any sport or any other…?

TS: No.

FT: So you’re trying to do something no one’s done before?

TS: I’d like to try something that’s different.

Have you costed it? Have you given it… actually sat down and tried to
work out how much it’s going to cost you to put this academy structure
in place?

TS: Well, I think it’s much cheaper than buying; just going and buying it.

you have to… you know, if you buy a piece of land and you build the
whole building and you sell it, you end up making more money than just
going and trying to buy the ready-made one.

FT: Is this your first acquisition of a company outside Thailand?

TS: Yes.

FT: Are there more to come, not necessarily in football, but in other sectors?

don’t know yet. I don’t know. One step at a time, because I’m too busy
now with the problem that’s created by the military junta. [Laughs].

FT: Now you mention it, do you think they are very irritated by you buying up an international football asset?

TS: Well,
you know, they should not worry much about me, because I already
declared that I retired from politics already, so they don’t have to
worry about it. I have to find something to do. I’m very hyperactive. I
cannot sit idle and do nothing. I want to do something that I really
like. I’m 58 already; getting old. Life is not that long, so you have
to find something to do that you really like.

FT: What do you think is motivating the junta to go after you in this way? Why do you think they feel the need?

TS: They may worry about me too much… They should not worry about it, because I’m not going back to politics.


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