Court Rules Thailand's Top Minister Guilty of Corruption by Phairath Khampha 30 August 2000 A leading member of Thailand's ruling party was found guilty of corruption on Agust 10, 2000, further damaging the government of Prime Minister Chuan Leekpai. The Thai Constitutional Court ruled on Thursday that the secretary-general of the ruling Democrat Party was guilty of concealing his wealth and barred him from office for five years. The court upheld charges laid against Sanan Kachornprasart, a former interior minister, by the National Counter-Corruption Commission that he fabricated a loan document for 45 million baht ($1.2 million). The former interior minister, Sanan Kachornprasart, was prosecuted under the 1997 reformist constitution, designed to wipe out corruption. The charges prompted him to resign as interior minister and the deputy prime minister as well as give up his parliamentary seat in late March. The court ruled no such loan was ever made, raising questions over the source of his considerable wealth. Mr Sanan does not face imprisonment but has no right of appeal. Denial Mr Sanan has maintained his innocence throughout the case, but resigned as secretary-general of the ruling Democratic Party after the verdict. "I will submit to the verdict, whatever it is, but I did not cheat anyone," he said on August 10. "It was an accounting mistake." This is a classic excuse in Thailand made by officials or businessmen caught out in acts of corruption. Thailand's Anti-corruption Commission had questioned the loan. The Commission was set up under the 1997 constitution to help clean up Thai politics. It has tried to wipe out vote-buying in elections. It forced senate elections to be held three times earlier in 2000 after some winners were found to have cheated. The verdict was a blow to Prime Minister Chuan Leekpai, leader of the Democrat Party, ahead of general elections that he must call by November. Sanan, 65, had been a top aide to Mr Chuan for more than a decade and the party's main power broker. He was instrumental in cobbling together the government coalition that came to power in 1997 during Asia's economic crisis. Sanan was the most powerful politician to have ended up on the sharp end of a reformist constitution adopted in 1997 which created the corruption commission to help clean up graft from politics and make the workings of government more transparent. "The court has considered thoroughly all the evidence from both sides ... Eleven judges all agreed today that the evidence of the defense has no weight," said Noppadol Hengcharoen, secretary of the court. The 12th judge was absent due to illness and it was not clear if he concurred with the verdict. When the commission laid its accusations against Sanan nearly five months before, he gave up his government posts, but stayed on as Democrat secretary-general, a position he now was likely to vacate. By law, the guilty verdict bars him from office for five years, but he does not face imprisonment. The court upheld the corruption commission's accusation that Sanan concocted a loan with a private company called AAS Auto Service in order to account for undeclared assets. Sanan, who was not in court, maintained his innocence on August 10 in comments to reporters before the ruling. Sanan's six-man legal team had contended the corruption commission did not look at enough evidence and was influenced by Sanan's political enemies. The allegations first surfaced in a parliamentary no-confidence debate in 1999. The ruling is likely to end Sanan's long and colourful public life. Considering that he was well known throughout Thailand for his venal ways he had been an unlikely but important ally to the squeaky-clean Chuan. Sanan was credited with building the Democrats' election victory in 1992 and forging the coalition government in 1997, stealing the loyalties of partners from then Prime Minister Chavalit Yongchaiyudh and forcing him from power at the onset of the economic crisis. Sanan's defence fails on three vital points - Paper chase leads up a blind alley Without substance, incredible and unreliable. So ended Sanan Kachornprasart's attempt to convince the Constitutional Court he had not fabricated a 45-million-baht loan he included in his declaration of assets and liabilities. The 11 judges present agreed unanimously in favour of the case brought by the National Counter Corruption Commission on April 7. They were Prasert Nasakul, the court president, Issara Nititanprapas, Jumpol na Songkhla, Lt-Gen Jul Atirek, Preecha Chalermvanich, Mongkol Saradan, Suchinda Yongsunthorn, Suvit Thirapong, Anant Ketwong, Suchit Boonbongkarn and Ura Wang-omklang. Another judge, Komane Pattarapirom, was sick and could not attend the meeting. Noppadol Hengcharoen, the court secretary-general, said the former Democrat secretary-general stated in his declarations of assets and liabilities to the commission on Nov 10, 1997, Dec 12, 1997 and Oct 30, 1998 that he had borrowed 45 million baht from AAS Auto Service Co. The court focused on three points:- Had Maj-Gen Sanan borrowed the 45 million baht?- Had he used the money to buy shares in Royal Lanna Tower Co? - Had there been a transfer of the sum from three AAS Auto Service executives (Krisnan Palarit, Thanusak Intarapuwasak and Pirapol Issaraprasart) to AAS? Basing their conclusion on witness testimonies and material evidence, the answer was no, Mr Noppadol said. Maj-Gen Sanan had challenged the commission throughout. The commission's investigation had been unlawful and Klanarong Chanthik, its secretary-general, had not brought all witnesses for examination. The court held that the commission had performed its duty and Mr Klanarong had acted within his powers. Maj-Gen Sanan's evidence was, the judges agreed, without substance, incredible and unreliable. Basically he had outright lied the whole time. So much for being an officer and a gentleman; he is really just a two-bit crook. Judge Suchinda said Maj-Gen Sanan claimed initially he had borrowed the money from AAS, but said later the loan was from Mr Krisnan and the debt was later transferred to AAS. A subsequent investigation revealed no evidence of the debt transfer. There were only 12 cashier cheques received by Mr Krisnan from Songchai Atchariyahiranchai, a tour operator, and Maj-Gen Sanan claimed he assigned Krieng Wongveeravat, an executive of Royal Lanna Tower Co, to take the cheques from Mr Krisnan to buy the company's shares. Mr Suchinda doubted the cheques had been paid to Maj-Gen Sanan. Mr Songchai might have issued the cheques to other people but they were used as evidence to claim the money had been paid to Maj-Gen Sanan. Mr Krieng's claim-that the money received to buy shares was not put on the company's books and he had spent it in his personal business-was incredible and unreliable and also a lie. Moreover, when the debt was transferred to AAS, it was not recorded in the firm's books for 1997. The debt was instead put in the 1999 balance sheet and the Revenue Department, when asked, said the practice was unusual and illegal, said Mr Suchinda. Judge Issara said there was no evidence of a transfer of debt from the executives to AAS. The debt did not exist. Judge Jumpol said there was no sound reason for Maj-Gen Sanan to draw cash on so many occasions to get a total of 45 million baht. The cheques had gone through many people before reaching Mr Krieng of Royal Lanna Tower.