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Egat investors forewarned
Opponents vow not to end privatisation fight
Egat investors forewarnedOpponents vow not to end privatisation fight
PRADIT RUANGDIT ANUCHA CHAROENPO
Pressure groups warn their fight against the listing of Egat Plc ``to the bitter end'' will jeopardise the potential for share profits and shrewd investors will steer clear. The organisations sent letters to most foreign missions in Thailand urging them to pass on the message to prospective investors in their countries that buying Egat shares, due for an initial public offering (IPO) on Wednesday and Thursday, might not be a wise investment move.
The organisations _ the Confederation of Consumer Organisations, Thailand (CCOT); Homenet; People Living with HIV/Aids, Thailand; Alternative Energy Project for Sustainability; Four Region Slum Network; Alternative Agriculture Network; and FTA Watch _ are up in arms against the partial privatisation of the utility.
The letter, signed by CCOT chairman Piroj Polpech on behalf of the alliance, states the groups had mobilised to oppose the listing.
They also petitioned the Supreme Administrative Court to halt the IPO and repeal the laws facilitating the transfer of Egat assets to the newly listed firm.
The alliance pledged to go all the way to fend off the Egat share sale.
``Our struggle to protect the public interest may cause grave financial risks to foreign investors expecting to buy and profit from shares of Egat Plc,'' the letter said.
Rosana Tositrakul, director of the Federation of Consumer Organisations and the network of 30 non-governmental organisations fighting corruption, said she hoped justice would prevail and urged people to join the anti-privatisation campaign of the civic organisations.
Meanwhile, the opposition made it clear to potential investors it had every intention to employ legal measures to ``right the wrong'' of the Egat privatisation if and when they return to power in the future. They did not give details.
Democrat party leader Abhisit Vejjajiva said it was only fair that investors were told in advance what to expect.
``Our party line has always been that when we reassume the country's leadership, we will take Egat back,'' he said, insisting the power grid must remain under government control to avoid a private monopoly as opposed to transferring it to the listed firm.
The government has made no headway in establishing an independent commission to monitor the utility post-privatisation, he said.
Nikorn Chamnong, Chart Thai deputy leader, said that by nature, electricity was a monopolistic business and without the independent agency to look after utility prices, the result would be chaos.
``The privatisation is absolutely out of the question because it's far too risky. Our party will reach a resolution and we'll stage a movement,'' he said.
Piyasvasti Amranand, chairman of Kasikorn Asset Management and an energy expert, cautioned investors, saying the share purchase entailed risks. The government would be in a dilemma because intervening in Egat after listing would dent transparency and dampen investor confidence. But if it left everything to market forces, power bills could surge.
``If the government contemplates meddling with the post-listing electricity price, it should not go ahead with offloading Egat shares,'' he said.
Vithoon Permpongsacharoen, secretary-general of the Foundation for Life and Nature Rehabilitation, said the privatisation plan being implemented was not conducive to accountability checks.
The Egat sale drama was restricted to a handful of ``actors'' with conflicts of interest. The power monopoly would only change hands from the state to the private company, which was unfair, he said.
Yesterday, Energy Minister Viset Choopiban told the Supreme Administrative Court the point of no return for the listing progress has been reached.
A halt to the share sale would do more harm than good to the country and the government's credibility, Mr Viset was quoted as telling the court by Nakorn Chompuchart, a lawyer who accompanied him during his testimony yesterday.
Mr Viset was answering a summons after 11 civic groups formally sought the court's order to abort the IPO.
The groups said two decrees had been passed without parliamentary approval to formalise the conversion of the Electricity Generating Authority of Thailand into Egat Plc. The decrees, in essence, were unconstitutional, they said.
The court will decide today whether to hear the case.
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