A Change of Guard

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Thursday, 19 November 2009

Cambodia takes reins of Thai-owned firm as row deepens


* Thai foreign minister says move "would not seem right" * Thai foreign minister says it should respect agreements (Adds comment from Thai foreign minister)

By Viparat Jantraprap

BANGKOK, Nov 19 (Reuters) - Deepening a diplomatic row, Cambodia has taken control of a Thai-operated air traffic control company at the centre of spying allegations, a step Thailand's foreign minister Kasit Piromya (pictured) said "would not seem right".

The Cambodian government has appointed a senior Civil Aviation official as temporary caretaker for Cambodia Air Traffic Services (CATS), a wholly owned unit of Thailand's Samart Corporation Pcl SAMA.BK, Samart said on Thursday.

All Thai expatriates at the company have been banned from performing their duties, it added.

The neighbouring countries are embroiled in a diplomatic row sparked in October when Cambodian Prime Minister Hun Sen offered fugitive former Thai premier Thaksin Shinawatra a job as an economic adviser and a home just across the border.

Thaksin, twice elected but deposed in a 2006 military coup and sentenced last year to two years in jail for graft, has been living in self-imposed exile, largely in Dubai. He spent five days in Cambodia last week, infuriating the Thai government. [ID:nSP128507]

A Thai engineer working for CATS has been accused of sending Thaksin's flight schedule to a Thai diplomat, who was expelled by Phnom Penh, and violating Cambodian national security laws.

Samart, 19 percent owned by Malaysian telecommunications firm Axiata Group (AXIA.KL), said on Thursday it was seeking support from the Thai government on negotiating with Cambodia for the release of the 31-year-old engineer, Siwarak Chutipongse.

"Samart has been closely cooperating with the Thai government to help negotiate with the Cambodian Government for the release of Mr. Siwarak and resolve this incident," it said in a statement to the stock exchange.

Its shares fell nearly 1 percent in early trade but were up 0.8 percent at 0757 GMT in a generally lower market.

RESPECT AGREEMENTS

CATS provides air traffic control services with a 32-year concession (2001-2033) under a build, cooperate and transfer arrangement with the Cambodian government, with revenue from the operations this year contributing about 5 percent to the group.

The investment is covered by an investment protection agreement between the two countries, it said.

Thai Foreign Minister Kasit Piromya said Cambodia should respect such bilateral agreements.

"The ministry is waiting for reports from the Thai embassy and we will also have to get clarification from the Cambodian government. If it violates bilateral agreements, then we will find ways to proceed," he told reporters.

"Cambodia is a market economy," he added. "Just seizing (a company) would not seem right."

Thaksin's brief presence in Cambodia fired up passions on both sides of Thailand's political divide, drawing attention to a border where Thai and Cambodian troops have clashed in the past year and causing each country to recall its ambassador. (Additional reporting by Ambika Ahuja; Editing by Jason Szep)

2 comments:

Anonymous said...

thai think they can push and manipulate us. now how they feel if we play thier own games. but i still feel that we khmer and thai can be hormniously live together like a peacefull kingdom that thrive to peacfully marginized society.but i feel shame to the yuon because they are opportunistic leeches waiting to sucks every tiny drop of our khmer land and blood.but at least thai and khmer deals with each other like sibleing rivals. unlike the yuon they like to sneak quietly behind our back when we are weak and off guards and depopulate their pardon crime goons in khmer society. like you have seen the madame and the pimps. and now the man and woman with nice suits and pants that run thier mouth like sugar in and ants mouth. and thier assimalator that live among us and dress like us and even organized like us. and their main goals are to quietly choke you to extinctions. fucking yuon. yes i have time to write that because i lose sleep everydays over it. and more.

Anonymous said...

True, Thai think they can intimidate and stampede Cambodia any time they like, now they know that Cambodia is not easily intimidated. They bully Cambodia all the way, now they feel the pinch as they seem to be in a defensive mode or the receiving end of the victimization.