Due Diligence with Ghost Companies

Atobe SG

With so much being said of the poor quality of 'due diligence' performed by Singapore Companies in the mega-dolloar take over of foreign companies that seem to see huge hiccups - some leading to massive write-offs to cover newly discovered losses (Thai-Danu Bank); it begs the question - do we have capable persons using the vast treasure of public funds in the mega-Dollar Foreign Adventures ?

It will seem that Temasek in the takeover of Shin Corp has not investgated the many mysterious corporate dealing that Shin Corp is built on; and in the process Temasek and Singapore is slowly being sucked into Thai politics

Shall we expect to hear some mega-Dollar Losses soon from this takeover of Shin Corp ?

Democrats chase ghosts in Spore

The Nation, Thailand
February 14, 2006
Thailand

THE paper company set up by Prime Minister Thaksin Shinawatra in 1999, Ample Rich Investments Ltd, has not only been involved in questionable stock transactions, its address in Singapore is also a source of mystery.
Democrat Party leader Abhisit Vejjajiva and fellow MP Sirichoke Sopha flew to Singapore over the weekend to visit the address of Ample Rich. They suspected that there could be two firms named Ample Rich, one incorporated in the British Virgin Islands, a tax haven, and another described in Thai documents as having an English identity.

However, the opposition MPs could find no sign of either Ample Rich at their declared Singapore addresses.

At a news conference yesterday, Sirichoke displayed pictures of the building supposed to house Ample Rich at 185A Goldhill Centre at 51 Thomson Road in Singapore.

The address is occupied by a firm called Kimberly Global and its staff knew nothing about Ample Rich, he said.

The Commerce Ministry must investigate why Ample Rich has failed to use a real address, the Democrat executive committee member said.

Now it is clear that 185A Goldhill Centre is not the address of Ample Rich. Let me ask the prime minister: What have you been doing? Does this company really exist? Or it is just an address submitted to the Commerce Ministry?

This is something the Commerce Ministry must investigate because Ample Rich might not exist in Singapore. Is this another attempt to conceal the stocks [of Shin Corp]?

On January 23, Karnjanapha Honghern, a secretary of the premiers wife Khunying Pojaman Shinawatra, submitted a 246-2 form to the Securities and Exchange Commission on behalf of Ample Rich informing the watchdog of the companys intention to sell 329.2 million shares (about 10 per cent) of Shin Corp.

She gave Ample Richs address as 185A Goldhill Centre, 51 Thomson Road, Singapore 307629. (The Nations correspondent in Singapore also failed to find any sign of Ample Rich at this address.)

At the same time Karnjanapha was acting on behalf of Ample Rich she notified authorities that two of the premiers children would acquire 329.2 million shares of Shin Corp at Bt1 apiece. On that same day, Thaksins son Panthongtae and daughter Pinthongta sold the Shin shares for Bt49.25 apiece to Temasek Holdings as part of the Singaporean firms Bt73-billion takeover of the conglomerate.

The transactions shocked Thailand and sparked an investigation of Ample Rich by the opposition Democrats.

Ample Rich, owned by Panthongtae and Pinthongta, held 10 per cent of the shares of Shin Corp on the foreign board of the Stock Exchange of Thailand. The Shinawatra and Damapong families held a combined 39 per cent of Shins shares on the main board. Together, they held about 1.4 billion shares, or almost 50 per cent of Shin Corp before the sell-off.

Korbsak Sabhavasu, a former Democrat MP, has found evidence that suggests there were two firms named Ample Rich, one incorporated in the British Virgin Islands and another described as having an English identity in Thai documents.

He displays a document on his website, www.korbsak.com, showing that as of April 30, 2001, the Ample Rich incorporated in the British Virgin Islands held 22.92 million shares of Shin Corp (before a share split). Its address is listed as 57 Ubi Avenue 1 #07-03, Singapore 408936.

The Ample Rich referred to as English in a Thai document held 10 million Shin shares (before the share split) and was located at 185A Goldhill Centre, 51 Thomson Road, Singapore 307629.

The firm incorporated in the British Virgin Islands reduced its stake by 10 million shares, or 100 million after the share split. Ample Rich (English) traded the Shin stock for a profit then disappeared without a trace.

On April 23 last year, the firm incorporated in the British Virgin Islands reported that it held 229.2 million Shin shares, Korbsak said.

But as of August 26, 2005, UBS AG, Singapore Branch held 329.2 million Shin shares in an account for Ample Rich.

The amount is equal to what Thaksin moved from the main board to the foreign board in 1999.

Korbsak asked whether Ample Rich had been involved in insider trading because it bought 100 million Shin shares to rebuild its portfolio to the original 329.2 million shares about five months before the Temasek deal.

However, Suvarn Valaisathien, the lawyer representing the Shinawatra family, had insisted there was only one Ample Rich, incorporated in the British Virgin Islands, and that this company never traded its Shin stocks.

Thaksin, in his weekly radio address on Saturday, also denied he had set up twin Ample Riches. There is only one and it was incorporated in the British Virgin Islands, he insisted.

He transferred ownership of Ample Rich to Panthongtae in 2000 and his son has relied on professional fund managers to look after the company since them, Thaksin said.

Sirichoke said he also visited the second address given for Ample Rich. But no one in the neighbourhood of 57 Ubi Avenue 1 had heard of the firm, but because it was a holiday he could not verify whether or not an Ample Rich was located there.

If I have time Ill go to Singapore again to conduct another investigation, he said.

Abhisit had been invited to Singapore to speak to the media there about the city-states image in Thailand following Temaseks takeover of Shin Corp.

He also met Lee Hsien Yang, CEO of Singapore Telecommunications, which holds a 20-per-cent stake in Shin subsidiary Advanced Info Service.

maggot SG

If you have been observant on how Temasek make its profits Twisted Evil

You should not get worried at all Laughing

Atobe SG

While the profit amount looked tantalising, should we fall asleep without any concern as to the amount that Temasek or GIC is capable of losing ?

Will the losses be comparable to the amounts of Profits made ?

In a non-transparent system in which all matters relating to GIC and Temasek is classified as 'STATE SECRET' - is anyone held accountable ?

When the Elected President is thwarted by new legislations from executing his duties to check on mismanagement of the Singapore Reserves - who is left to manage the Managers of our Singapore Funds ?

maggot SG

Where can we check our reserves amount? surely the banks have the answer Laughing

I'm sure Temasek have check the status of their purchase in liquid and fixed assets which in due time will RISE Twisted Evil profit time

Of course everyone wants to know where are the funds are been put at

If someone were to attack singapore in financial terms...they would attack the reserves...make the value of the money and assets drop to a level enough the wreck significant damage to our country Neutral

So as an example would you like to let the world know what colour and brand is your underwear you wear each day? Laughing
For transparency sake
Note: the above is just an example