ICAC Hong Kong Wanted Person Notice for Derek Kanjanapas

While visiting the web site of the Independent Commission Against Corruption (ICAC) in Hong Kong today I came upon the following "Wanted Person" Notice:

Link: http://www.icac.org.hk/en/law_enforcement/wp/index_uid_29.html

KANJANAPAS Chong-kwong, Derek, alias WONG Chong-kwong, Derek of Hong Kong is wanted by the ICAC in connection with a criminal charge of "offering advantages" (bribery) in Hong Kong.

What got me interested was not the notice itself but the person who is wanted by the Hong Kong authorities. The family name "Kanjanapas" belongs to a prominent family in Thailand, the major shareholders of Bangkok Land Public Company Ltd. (a property developer) and Tanayong Public Company Ltd. (builder and operator of Bangkok's Skytrain Light Rail System), among others. Anant Kanjanapas is the Chairman and CEO of Bangkok Land PCL while Sakorn, Sui Hung and Shui Pang Kanjanapas are listed as Directors of the company.

In my experience, members of this particular family, even though rich and powerful in Thailand, are not exactly known for their honesty and good reputation. My wife used to work for the Hong Kong office of a very well-known British urban planning and architectural consulting firm. The planning and design of Bangkok Land's very big residential development project in Chaeng Watthana, Muang Thong Thani, was undertaken by my wife's employers. When the project design work was finished Bangkok Land refused to pay the bulk of the payments due for the services rendered. I understand that to this day, after so many decades have passed, the bill has not been settled. The share price of B-LAND shares and its warrants listed on the Stock Exchange of Thailand have fluctuated alternately many times each year between a few satangs to over one Baht during the past many years for no specific or visible reasons at all, as this company has been a perrenial money loser. If this not due to rampant price manipulations by insiders what could be the real reason?

To me the Kanjanapas family are nothing but crooks, and whosoever have business dealings with them will most likely end up short-changed. Derek Kanjanapas' behavior of attempted bribery of certain bankers and stock brokers in Hong Kong is no exception. The former Chairman of Semtech International Holdings Limited of Hong Kong is wanted for failing to appear in court on the date of his conviction for offering bribes to a Senior Director of the American Express Bank Limited and a divisional Managing Director of VC Brokerage Limited as a reward for their showing favor to Semtech's shares during two share placement exercises held in July 2004. He was charged on 22 March 2005 with two counts of offering an advantage. On 24 July 2007, a warrant was issued by the Judge for his arrest.

Sound familiar? Committing criminal offences like cheating and corruption, and running away from justice, seem to be a distinct trait among the rich and famous in Thailand no matter where they live. Another famous criminal on the run is Thaksin Shinawatra, the former prime minister of Thailand who was recently convicted by the Thai Supreme Court last week for abuse of power and conflict of interest related to his wife's succesful bid for a piece of land sold through auction (believed by many to be rigged in her favor) by an agency of the Bank of Thailand several years ago, while being the prime minister and sentenced to a 2-year jail term. His wife Pojaman Shinawatra was also convicted of tax evasion several months ago and sentenced to a 3-year jail term. Both fugitive criminals jumped bail several months ago and escaped to London, England and are now hiding as fugitives in that country.

ThaiBev Listing on The Stock Exchange of Thailand Could Sink Alcohol Regulations?

The following news article appeared in The Nation dated October 25, 2008:

Link: http://www.nationmultimedia.com/2008/10/25/national/national_30086814.php

ThaiBev Listing Could Sink Alcohol Regulations : Critics
By Pongphon Sarnsamak

The Nation


Published on October 25, 2008

A Thai Beverage PLC (ThaiBev -- http://www.thaibev.com/index.html) share listing on the Thai Stock Exchange (SET) could obstruct Public Health Ministry efforts to regulate the control of alcohol consumption, according to a senior health officer. Even though the economy would get a boost from the brewery's float, Thai society would be affected in the long term, said Dr Saman Futrakul, director of the Alcohol and Tobacco Consumption Control.

Saman said a ThaiBev listing would release 80 million shares to the public, and many investors would oppose the ministry's planned alcohol regulations as a threat to company profits.
Santi Asoke movement leader Samana Photirak said he challenged government reaฌsoning that the company listing would benefit the economy. Saman said that while the public focused on the current political tension and joined in street protests, ThaiBev has taken advantage of the turmoil to push its application to the SET.

He said his network had still not discussed action against the company because most of its members had gone to the anti-government People's Alliance for Democracy protest at Government House. "Our point is clearly that we will not talk, even negotiate, with Thai Beverage," he said.

PAD's core leader Chamlong Srimuang, who also opposes the stockmarket listing of ThaiBev, said his network was not available to move against the company at this time but there were other groups working against the ThaiBev plan.

Meanwhile Public Health Minister Chalerm Yoobamrung is pressing ahead to ban alcohol sales on public holidays but not during the New Year festivities, which attract many tourists. A Suan Dusit poll sampled 406 people from October 17 to 22, 2008 found that 51.35 per cent agreed with a Public Health Minisry ban on alcohol sales on public holidays.

Here's my view on this development:

I cannot understand the rationale behind the opposition to ThaiBev's listing on the SET. What does the listing of this company have to do with consumption levels of alcoholic drinks in the country?






If this company is denied it's listing application once again, does it mean consumption of alcoholic drinks in the country will decrease significantly? Will the company's products be unavailable in retail stores, restaurants, bars and other establishments selling and/or serving alcoholic drinks throughout the country? Will it lead to the withdrawal of all other brands and kinds of alcoholic drinks from the Thai market, products that are not produced by ThaiBev as well?

Let's be realistic about the situation. The listing of a company like ThaiBev has no bearing at all on the consumption levels of alcoholic drinks in the country. It is similar to the situation where the listing of the local Pepsi Cola bottling company, Sermsuk PLC, on the SET has no bearing on the consumption of soft drinks in the country. If the government sincerely and truly wants to significantly reduce the consumption of alcoholic drinks and tobacco products in the country because of concerns for the health of the citizens and residents of the country, the best way is to raise the retail prices of such products significantly by raising the annual increment of excise and other taxes on such products by a big multiple, such that their retail selling prices will rise significantly each year and their continued consumption in large quantities will cause economic pain on the consumers. This is exactly the strategy followed by many developed countries like Canada and others, with notable, significant and continued decline in the consumption of such products annually..

At the same time the following can or should also be undertaken.



1. Abolish the "duty-free" importation of alcoholic drinks and tobacco products by all travelers, both tourists and residents alike, similar to what Hong Kong has done for the last 20+ years.



2. Increase import duties and taxes on such products very significantly, in addition to increased local excise and consumption taxes.


3. Strictly control sales of such products in the market such that no products are sold to minors no matter what.



4. Strictly control smuggling activities of such products, with penalty of death or life imprisonment with no opportunity for parole, if necessary for all offenders.



5. Ban all advertising of such products throughout the country in all forms and manners without exception.



6. Close all government-owned factories producing such products permanently to set a good example for all to follow..



7. Impose new and significant health and sin taxes on the production, importation and sale of such products to supplement existing funding for new and better health care facilities and medications available to the general public throughout the country.

There is absolutely no reason why ThaiBev should be prevented from listing it's shares on the SET. If I were the majority shareholder ThaiBev and if the company fails to get a listing this time around due to opposition by special interest groups, I will first "inject" the assets of ThaiBev into my other majority-owned listed company, Berli Jucker PLC, and issue new shares for subscription by existing Berli Jucker shareholders as well as do a secondary P.O. to attract new investors and broaden the base of smaller and minority shareholders.

Sometime later on I shall spin off the trading activities of Berli Jucker into a separate listed company, which will assume the original Berli Jucker company name. I shall at the same time change the name of the original listed Berli Jucker PLC to Thai Beverge PLC. This somewhat more complicated process would enable the company to achieve the same objective while circumventing any illogical opposition, albeit through the back door.