Thailand delays closing state line over corruption allegations

Thailand's Deputy Transport Minister Anurak Jureemart is likely to delay the closure of the state-run Thai Maritime Navigation pending a corruption investigation into the state shipping line and a former deputy transport minister, the Bangkok Post reported this week.

Anurak said Thai Maritime Navigation is being investigated for alleged corruption in connection with its joint shipping venture, TMN Co. -- of which TMN has a 30 percent stake and 23 private shipping operators hold the other 70 percent through the Thai Shipowners Association.

Government officials had recommended the dissolution of Thai Maritime Navigation after the establishment of the public-private venture, the newspaper reported, but government auditors are delaying the dissolution, saying the Thai Maritime Navigation board has allegedly been favoring ship owners that are part of the TMN joint venture since it came into being.

The state enterprise was suffering losses, was inflexible and did not own any ships, the story said. It brokered shipping privileges with other shipping companies, (Anurak) said. However, the TMN joint venture was operating well and planned to acquire 14 ships by 2010 and increase its market share to more than ($949.8 billion) in a total market of ($12 billion) a year. With a bigger fleet, the joint venture could help cut freight charges by 30 percent.