A Change of Guard

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Tuesday 12 January 2010

Cambodian govt returns air traffic firm to Thais

CATS headquarter in Phnom Penh.

Cambodia's government on Monday returned management of the country's air traffic control company to its Thai owners, a small concession in a dispute over its overtures to ousted former Thai Prime Minister Thaksin Shinawatra.

Control of Cambodia Traffic Air Services, or CATS, was seized in November after Cambodia arrested a Thai employee, Siwarak Chutipong, on a spying charge. He allegedly stole the flight schedule of Thaksin -- who is a fugitive from Thai justice but who was visiting Cambodia as a VIP guest -- and gave it to a Thai diplomat.

Other Thai employees of the company were barred from coming to its offices, but not otherwise penalized.

Samart Corp., the parent firm of CATS, said Cambodia's Cabinet returned control of the company on Monday.

In 2008, a Thai court sentenced Thaksin in absentia to two years in prison for violating a conflict of interest law, but he fled into exile before the verdict. He was ousted by a 2006 military coup after being accused of corruption and abuse of power.

In early November, Cambodia named Thaksin as an adviser to the government on economic affairs. The appointment, and a subsequent visit by Thaksin, set off a diplomatic imbroglio in which the two countries recalled their ambassadors. Cambodian Prime Minister Hun Sen said Thaksin had been unfairly convicted for political reasons.

Siwarak was convicted and sentenced to seven years in jail by a Cambodian court but was pardoned soon afterward and allowed to leave for Thailand.

The statement by Samart quoted its president, Watchai Vilailuck, as expressing appreciation for the handover and saying that it signaled "that Kingdom of Cambodia is open and fair to the foreign businesses and shall win investor's confidence in the long-term."

It said that Samart in 2001 won a concession to operate CATS for 32 years.

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