Graft panel to look into complaint against Kosit

General news - Thursday December 13, 2007

Graft panel to look into complaint against Kosit

Padaeng role alleged to be conflict of interest

The National Counter Corruption Commission (NCCC) has accepted a conflict of interest complaint filed against Deputy Prime Minister and Industry Minister Kosit Panpiemras.

Ruangkrai Leekitwattana, an adviser to the auditor-general, lodged the complaint with the NCCC on Monday, accusing him of holding an authorised representative position at Padaeng Industry Plc, a listed zinc miner under the supervision of the Industry Ministry and also a state concessionaire.

Mr Ruangkrai said Mr Kosit being both industry minister and Padaeng Industry adviser could lead to a conflict of personal and national interests.

According to Mr Ruangkrai's complaint, Mr Kosit was a director of Padaeng until Oct 9 last year , representing Bangkok Bank Plc.

While he was a Padaeng director, Mr Kosit received remuneration plus a bonus for being a director. That meant his personal interests were related directly to Padaeng's, Mr Ruangkrai said.

Besides being industry minister, Mr Kosit was also appointed deputy prime minister and chairman of the National Environment Commission. All three positions lent Mr Kosit authority over Padaeng's zinc mining licence.

As Padaeng's mining licence was to expire, it applied for renewal in 2003, but the last government did not grant it. When Mr Kosit took the industry portfolio he hurried up the appointment of a committee in accordance with the Ore Act which approved Padaeng's licence renewal request despite the committee not yet having received the report on Padaeng's zinc mining site's environmental impact assessment study (EIA).

The committee's approval was, therefore, unlawful, Mr Ruangkrai said.

Later on, Mr Kosit endorsed the EIA report prepared by Padaeng, prompting other committee members to endorse the EIA report too, Mr Ruangkrai alleged.

The complaint also accused Mr Kosit of favouring Padaeng by recommending that the cabinet approve the Industry Ministry's request to allow Padaeng to operate its mine in a reserved forest.

Mr Ruangkrai asked the NCCC to investigate Mr Kosit's alleged conflict of interest that favoured Padaeng and file a lawsuit against Mr Kosit with the Supreme Court's political crime division.

Mr Kosit could not be reached for comment last night.

Bangkok Post