A legal adviser of Thaksin Shinawatra yesterday distanced the former prime minister from a cash-for-influence scandal involving an international liquor company and a Thai politician.
Noppadon Pattama denied a "Thai official" implicated by the US Securities and Exchange Commission (SEC) in the case was a close aide of Thaksin.
On Wednesday, the SEC fined London-based Diageo Plc for violating the Foreign Corrupt Practices Act after making improper payments to state officials in Thailand, India and South Korea.
"From 2004 to mid-2008, Diageo paid approximately $12,000 per month _ totalling nearly $600,000 _ to retain the consulting services of a Thai government and political party official," the SEC said.
"This official lobbied other high-ranking Thai government officials extensively on Diageo's behalf in connection with pending multi-million-dollar tax and customs disputes, contributing to Diageo's receipt of favourable decisions by the Thai government."
In the SEC complaint, the Thai official was identified as a committee member of the Thai Rak Thai Party, a former deputy secretary to the prime minister and adviser to a deputy prime minister and agriculture minister.
The official was also the brother of a senior official of Diageo Moet Hennessy Thailand (DT) and had served on several state-enterprise boards.
Mr Noppadon said Thai Rak Thai's successor, the Pheu Thai Party, would provide full cooperation if any party member is found to be involved.
According to the SEC document, Diageo, through DT, paid $599,322 to a consulting firm for services of the official between April 2004 and July 2008.
Diageo, which makes Johnnie Walker whisky, Smirnoff vodka and Guinness beer, agreed to pay fines of US$16 million (475.5 million baht) to settle the case.
Pongpanu Svetarundra, director-general of the Excise Department, said an initial inquiry found no irregularities on the part of the department, but a fuller investigation would be launched.
The SEC complaint said Diageo paid the Thai official to provide "extensive lobbying services" on its behalf in a number of tax and customs disputes.
One Excise Department official dismissed any allegations that tax practices had been changed to benefit Diageo, and said the department used whichever method resulted in the highest gain for the state.
Under the tax code, the Excise Department calculates taxes on whisky either based on 50% of the value or 300 baht per litre of 100% alcohol content, whichever is higher. The SEC said Diageo carried out extensive lobbying to clear a pricing dispute on customs claims.Wisan Wuthisaksilp, a principal adviser for the Customs Department, said an out-of-court settlement was reached with Diageo this year.
The department accused DT of under-declaring its CIF (cost, insurance and freight) prices for imports, which as a result resulted in lower customs duty paid than required. Diageo ultimately agreed to pay a hefty fine of 1 billion baht for the CIF transgressions.