This is why we've put up with Myanmar's insults and intransigence for so long.
Burma to pay Shin with Thai loans?
Published on Aug 24, 2004
Prime Minister Thaksin Shinawatra yesterday defended a plan to grant a Bt962 million soft loan to Burma that will be used to overhaul the country?s telecom sector, of which the Shinawatra family business empire is heavily involved.
Thaksin said Thailand had yet to approve Burma?s loan request, and the decision would be made by the Export and Import Bank (Exim Bank).
?They are not asking for free cash. They want to borrow money and pay it back,? Thaksin told reporters.
?The request came through an official channel and it is being considered according to proper principles. The project will also help solve poverty problems in Burma.?
But Thaksin sidestepped concerns that the proposed loan would be tainted by conflicts of interest, with his family?s business empire set to benefit.
The controversy erupted yesterday when the Matichon newspaper reported that the Ministry of Communications, Posts and Telegraphs Union of Burma had requested the soft loan to fund three telecom projects worth more than US$30 million (Bt1.2 trillion).
The projects, which centre on broadband satellite, nationwide transmissions and information and communications technology, require material supplied by Thailand?s telecom sector, of which the Shinawatra family empire is a key player.
Burma?s sole Internet service provider Bagan Cybertech is involved in the schemes.
It provides Internet access and a longdistance call service in Burma via the iPSTAR gateway and its equipment and the iPSTAR broadbandsatellite signal, which is owned by the Shinawatra family?s Shin Satellite Plc.
ShinSat yesterday released a press release defending itself.
The company said its was normal practice for countries to seek soft loans from Exim banks based in the same country as the equipment supplier to ensure a project?s success.
ShinSat said it had secured loans from Exim banks in the US and France to finance its iPSTAR broadband satellite, which was developed by US company Loral Space and Communications Ltd and will be launched by French firm Ariane Space.
Thai Foreign Ministry spokesman Sihasak Phuangketkeow said the three Burmese projects had been proposed under the Bt4billion credit line that Thailand offered Burma to build basic infrastructure projects in order to develop its grassroots economy.
Thailand approved the credit line during Burmese Prime Minister Khin Nyunt visit to Bangkok in June under the condition that materials for the projects by purchased from Thailand.
Sihasak said only three projects had so far been approved, adding that Burma?s telecommunication structure needed drastic improvement.
He said the loan was not a ?blank check?, with all projects required to follow Exim Bank guidelines, which operated in accordance with ?universal practices?.
Earlier this year, leading US Congressman Senator Mitch McConnell blasted Thaksin, describing his support for Burma?s military government as ?odd behaviour given Thailand?s professed commitment to democracy and human rights?.
McConnell charged that Thaksin?s policy towards Burma might have been shaped by his family?s investment in the country.
He said Thaksin?s cosy relationship with Burma?s oppressive regime was questionable because it came amid an influx of ?narcotics, HIV/Aids and other undesirable exports pouring across Burma?s borders into Thailand?.
?Some suspect that the raison d?etre can be summed up in a single word: iPSTAR,? he said.
Burma to pay Shin with Thai loans?
Published on Aug 24, 2004
Prime Minister Thaksin Shinawatra yesterday defended a plan to grant a Bt962 million soft loan to Burma that will be used to overhaul the country?s telecom sector, of which the Shinawatra family business empire is heavily involved.
Thaksin said Thailand had yet to approve Burma?s loan request, and the decision would be made by the Export and Import Bank (Exim Bank).
?They are not asking for free cash. They want to borrow money and pay it back,? Thaksin told reporters.
?The request came through an official channel and it is being considered according to proper principles. The project will also help solve poverty problems in Burma.?
But Thaksin sidestepped concerns that the proposed loan would be tainted by conflicts of interest, with his family?s business empire set to benefit.
The controversy erupted yesterday when the Matichon newspaper reported that the Ministry of Communications, Posts and Telegraphs Union of Burma had requested the soft loan to fund three telecom projects worth more than US$30 million (Bt1.2 trillion).
The projects, which centre on broadband satellite, nationwide transmissions and information and communications technology, require material supplied by Thailand?s telecom sector, of which the Shinawatra family empire is a key player.
Burma?s sole Internet service provider Bagan Cybertech is involved in the schemes.
It provides Internet access and a longdistance call service in Burma via the iPSTAR gateway and its equipment and the iPSTAR broadbandsatellite signal, which is owned by the Shinawatra family?s Shin Satellite Plc.
ShinSat yesterday released a press release defending itself.
The company said its was normal practice for countries to seek soft loans from Exim banks based in the same country as the equipment supplier to ensure a project?s success.
ShinSat said it had secured loans from Exim banks in the US and France to finance its iPSTAR broadband satellite, which was developed by US company Loral Space and Communications Ltd and will be launched by French firm Ariane Space.
Thai Foreign Ministry spokesman Sihasak Phuangketkeow said the three Burmese projects had been proposed under the Bt4billion credit line that Thailand offered Burma to build basic infrastructure projects in order to develop its grassroots economy.
Thailand approved the credit line during Burmese Prime Minister Khin Nyunt visit to Bangkok in June under the condition that materials for the projects by purchased from Thailand.
Sihasak said only three projects had so far been approved, adding that Burma?s telecommunication structure needed drastic improvement.
He said the loan was not a ?blank check?, with all projects required to follow Exim Bank guidelines, which operated in accordance with ?universal practices?.
Earlier this year, leading US Congressman Senator Mitch McConnell blasted Thaksin, describing his support for Burma?s military government as ?odd behaviour given Thailand?s professed commitment to democracy and human rights?.
McConnell charged that Thaksin?s policy towards Burma might have been shaped by his family?s investment in the country.
He said Thaksin?s cosy relationship with Burma?s oppressive regime was questionable because it came amid an influx of ?narcotics, HIV/Aids and other undesirable exports pouring across Burma?s borders into Thailand?.
?Some suspect that the raison d?etre can be summed up in a single word: iPSTAR,? he said.

