Prachai to file counter suit against DSI over siphoning claim

21-Mar-06

Prachai Leophairatana, the founder of Thai Petrochemical Industry (TPI), plans to file a counter-suit with the Criminal Court against the Department of Special Investigation (DSI), which has accused him of siphoning money from TPI. The DSI has claimed that the 90-year lease contract for TPI Tower signed between Pornchai Enterprise, wholly owned by the Leophairatana family and TPI, was irregular as both parties were controlled by the same executives. Mr Prachai and his family are also alleged to have siphoned off TPI money through their three companies: Pornchai Enterprise, a property developer; TPI Holdings, an investment arm; and TPI EOEG, a manufacturer of industrial chemicals. Mr Prachai plans to file a complaint in the criminal court against TPI's administrators. He said those planners intended to file a false complaint to the Securities and Exchange Commission (SEC) in a bid to take absolute control of TPI prior to the transfer of a majority shareholding in the company to PTT and state investor allies.