Privatisation of TOT tottering badly

13 Apr 2006

Thai incumbent fixed line operator TOT Corp’s long-delayed privatisation plan is on the brink of collapse after the Supreme Administrative Court accepted a petition for hearing filed by the telco’s employees to revoke the plan and change TOT’s corporate status back to a state enterprise. Whilst the hearing goes ahead, TOT is required to halt its privatisation process, which includes roadshows and a plan to list on the Stock Exchange of Thailand this year. The court’s decision came after representatives of TOT employees, led by Chaipluack Sittisak, filed a petition on 30 March accusing former prime minister Thaksin Shinawatra and the Communications Ministry of violating national laws in their efforts to privatise the company. They claim that the process is unconstitutional, illegitimate and mired with conflicts of interests. In reply, TOT chairman Sathit Limpongpan insisted that the process is in compliance with enterprise laws and all committee members involved were free of conflicting interests.

Thailand, TOT