| Associated
Press November 15, 2006 SINGAPORE SINGAPORE said its state-owned investment company thoroughly assessed the risks before investing in a Thai telecommunications company earlier this year, and that the deal was legal, local media reported Wednesday, Nov 15. Temasek Holdings' US$1.9 billion (euro1.55 billion) purchase of a controlling stake in Shin Corp fueled calls for Prime Minister Thaksin Shinawatra to resign, causing political tensions that culminated in the September coup that overthrew Thaksin. "It was not a reckless investment," Singapore's second Finance Minister Tharman Shanmugaratnam told Parliament Tuesday, speaking on behalf of the government, the Straits Times newspaper reported. The minister was responding to lawmakers' questions about the deal. He also said Temasek was advised by Thai legal experts, as well as Thai and international investment advisers and acted according to Thai laws. He reiterated that the Singapore government played no part in Temasek's decision. Temasek purchased its Shin Corp shares from Thaksin's family. The sale drew widespread protests in Thailand because it placed strategic telecommunications assets in foreign hands, and because the deal was structured so that Thaksin's family did not have to pay taxes on it. Last week, Thailand's Revenue Department ruled that Thaksin's son and daughter must pay taxes on the sale. |
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