Samart seeking partner for Cambodia air-traffic venture

Burma and Laos expansion targets

24/05/2010
Srisamorn Phoosuphanusorn
Bangkok Post

Samart Corporation, the country's leading communications equipment firm, is in negotiations with a few prospective foreign partners for a joint venture in its air traffic management services in Cambodia.

The strategic move is in preparation for listing its Cambodia Air Traffic Services (CATS) Co on the local stock market to raise capital by the end of this year.

The wholly owned subsidiary of Samart is also moving aggressively to expand its air traffic control services into Burma and Laos this year to increase overseas revenue.

Watchai Vilailuck, the president of Samart Corp, said three to four potential air traffic management companies in Europe have expressed interests to purchase shares in CATS for a partnership. He declined to specify names but said the firms are the world's leading business scale.

"A conclusion is expected to be settled soon. We would limit the maximum foreign shareholding at 40% in CATS," he said in an interview.

Mr Watchai said seeking a strategic partner was primarily intended to further expand business into other countries and develop business portfolio.

Listing CATS on the fledgling Cambodian stock exchange, meanwhile, is aimed at increasing liquidity, broadening service availability in the market and enhancing its financial standing. It also gives investors in Cambodia an opportunity to acquire shares in the company.

The proceeds from the listing would be used for business expansion and development, he added.

Mr Watchai said air traffic control service was a cash cow for Samart, thanks to its sustainable long-term growth in revenue and profit.

The company had already reached the break-even point after a one-time investment of $30 million during the startup, he added.

CATS was granted an exclusive 32-year licence by the Cambodia government under a build-operate-transfer agreement to develop and operate the entire civil air traffic control and navigation system in Cambodia.

CATS posted $3 million in net profit in 2009. The company earned US$23.07 million in revenue last year, compared with $12.6 million in the first year of its licence in 2002. Its first-quarter revenue this year was $6.27 million.

The company managed 47,476 flights last year, compared with 31,425 flights in 2002. The flight number in the first quarter of this year totalled 12,724.

Mr Watchai said CATS expected revenue to grow by 10% this year, thanks to a recovering global economy and a surge in tourist numbers in Cambodia.

The company is spending $7 million to expand its radar system and navigation platform in Sihanu city to broaden its service network.

CATS now operates air traffic control services at domestic and international airports in eight cities in Cambodia.

"We are looking to expand our air traffic control service in other countries in Indochina to increase revenue from overseas businesses," Mr Watchai said.

Thai Employees Retake Air Traffic Responsibilities

By Kong Sothanarith, VOA Khmer
Original report from Phnom Penh
12 January 2010

Cambodia has returned responsibility for its air traffic to a team of Thai controllers that had been suspended since November—with changes officials say will improve national security.

The Thai-owned company, Cambodian Air Traffic Services, saw its senior Thai staff replaced by Cambodian counterparts in the wake of a scandal in November, when one of its employees reported flight information to the Thai Embassy in Phnom Penh.

The employee, Siwarak Chotipong, was charged as a spy by a Cambodian court for reporting information related to ousted premier Thaksin Shinawatra, who was expected to arrive in Cambodia as a new economic adviser to Prime Minister Hun Sen.

Siwarak received a royal pardon in December, but Thai staff at CATS had remained on the sidelines.

Those top posts were reoccupied by Thai staff on Monday, officials said. However, the company has been restructured to include Cambodian staff in each of the company's departments.

"Cambodian staff from now on will occupy the flight office and equipment control office, and they communicate directly to the general director of the company," said Phay Siphan, a spokesman for the Council of Ministers, which ordered the reinstatement.

The air traffic imbroglio came in the midst of deepening diplomatic divisions between the two countries over Thaksin's appointment, and Phay Siphan said Tuesday the reinstatement of Thai staff was not intended to improve diplomatic ties but was rather "an application of commercial law."

Koy Kuong, a spokesman for the Ministry of Foreign Affairs, said Tuesday the diplomatic situation between the two neighbors is "still the same."

Cambodian govt returns air traffic firm to Thais

January 11, 2010
The Associated Press

PHNOM PENH, Cambodia - Cambodia's government on Monday returned management of the country's air traffic control company to its Thai owners, a small concession in a dispute over its overtures to ousted former Thai Prime Minister Thaksin Shinawatra.

Control of Cambodia Traffic Air Services, or CATS, was seized in November after Cambodia arrested a Thai employee, Siwarak Chutipong, on a spying charge. He allegedly stole the flight schedule of Thaksin -- who is a fugitive from Thai justice but who was visiting Cambodia as a VIP guest -- and gave it to a Thai diplomat.

Other Thai employees of the company were barred from coming to its offices, but not otherwise penalized.

Samart Corp., the parent firm of CATS, said Cambodia's Cabinet returned control of the company on Monday.

In 2008, a Thai court sentenced Thaksin in absentia to two years in prison for violating a conflict of interest law, but he fled into exile before the verdict. He was ousted by a 2006 military coup after being accused of corruption and abuse of power.

In early November, Cambodia named Thaksin as an adviser to the government on economic affairs. The appointment, and a subsequent visit by Thaksin, set off a diplomatic imbroglio in which the two countries recalled their ambassadors. Cambodian Prime Minister Hun Sen said Thaksin had been unfairly convicted for political reasons.

Siwarak was convicted and sentenced to seven years in jail by a Cambodian court but was pardoned soon afterward and allowed to leave for Thailand.

The statement by Samart quoted its president, Watchai Vilailuck, as expressing appreciation for the handover and saying that it signaled "that Kingdom of Cambodia is open and fair to the foreign businesses and shall win investor's confidence in the long-term."

It said that Samart in 2001 won a concession to operate CATS for 32 years.

Cambodia allows family and Thai officials to visit detained Thai engineer

BANGKOK, Nov 26 (TNA) – The Cambodian government will allow visits on Friday to a Thai engineer detained in Phnom Penh on espionage charges, according to a Thai Ministry of Foreign Affairs' spokesperson, who said that both family and Thai officials will be permitted to visit.

Director-General Vimon Kidchob of the Department of Information told a press briefing on the latest developments regarding Siwarak Chutipong, the Thai engineer at Thai-owned Cambodia Traffic Air Services (CATS), that following the Thai government’s request, the Cambodian government on Wednesday had officially informed Thailand that permission to visit Mr Siwarak by his family members and Thai officials had been granted.

The visit is scheduled for Friday at 2pm.

Ms Vimon added that Madurapochana Ittarong, Deputy Director-General of the Department of Consular Affairs, would go to the Khmer capital with Mr Siwarak’s family -- Simarak na Nakon Panom, his mother, and Pongsuree Chutipong, his younger brother.

The 31-year-old Siwarak was arrested earlier this month after being accused of giving fugitive ousted Thai premier Thaksin Shinawatra’s flight schedule to the first secretary of the Thai embassy in Phnom Penh.

The diplomatic falling out between the Thai and Cambodian governments flared up after the Cambodian government appointed Mr Thaksin as its economic adviser. The two kingdoms recalled their respective ambassadors in retaliatory actions.

The Cambodian government also invited Mr Thaksin to Phnom Penh to lecture over 300 Cambodian businessmen and economists as his first assignment, at the same time rejecting Thailand's request to extradite the fugitive former premier.

As the diplomatic row continues, Mr Thaksin's interview with Britain’s Timesonline website continued to rankle Thais.

In the article, Mr Thaksin commented about the Thai monarch and his successor, with remarks considered offensive to the monarchy. The ousted premier, however, reportedly defended himself by saying his interview was ‘distorted’ by the reporter.

Thailand’s Department of Special Investigation (DSI) board decided to investigate the arm of Britain’s Times of London as a special case due to its exclusive interview with Mr Thaksin deemed offensive to the monarch.

Cambodia denies premier's daughter taking stake in air traffic firm

Mon, 23 Nov 2009
DPA

Phnom Penh - Cambodia rejected Monday a Thai media claim that the daughter of Prime Minister Hun Sen is to take a stake in a Thai firm at the centre of a spying row. A cabinet statement said the government's management of Cambodia Air Traffic Services (CATS), a Thai-owned air traffic control firm, is temporary.

However, the statement did not indicate how long the government's hold over CATS would last.

"The spokesman wishes to stress, once again, that the Royal Government of Cambodia appointed its officials to temporarily supervise and manage the company, only to protect the national security and safety for Cambodian leaders," it said.

A Thai employee of CATS was arrested November 12 for allegedly leaking the flight details of Thailand's fugitive former prime minister Thaksin Shinawatra during his recent visit to Cambodia.

Thaksin was in Cambodia in his capacity as an economic adviser to the Cambodian government and as a personal adviser to Hun Sen.

The two appointments and Thaksin's visit sparked a diplomatic row that plunged relations between the neighbouring countries to their lowest level in years, as each government recalled its ambassador.

Cambodian PM's daughter to take over CATS

All in the hands of a family

BANGKOK, Nov 21 (TNA) -- Cambodian Prime Minister Hun Sen’s daughter plans to hold shares in Thai-owned Cambodia Traffic Air Services (CATS) after the Cambodian government has temporarily taken over management of the firm, according to Dr Panitan Wattanayakorn, deputy secretary-general to the Thai prime minister.

Dr Panitan, also acting government spokesman, confirmed the news report that Cambodian leader's daughter is planning to hold shares in CATS.

The plan followed confirmation by the Cambodian government of its temporarily assuming control of the management of the country's air traffic control company following the arrest of CATS employee Siwarak Chutipong on charges of espionage.

Tekreth Samrach, a deputy minister of Cambodia’s Council of Ministers, said in Phnom Penh Friday that his government acted against CATS for the sake of national security and for flight safety. Nine other Thai employees of the company were also banned from the workplace.

Meanwhile, Chawanon Intarakomalsut, the Thai Foreign Minister’s secretary, said in Bangkok that CATS is registered in Hong Kong and it was not possible to determine the identity of its shareholders.

He said, however, it would be difficult for any individual to take over the company, but his ministry would try to assist CATS. So far the company has not requested help.

He said the Thai foreign ministry is studying whether CATS is included in the Thai Cambodian Investment Protection Act as it is registered in Hong Kong.

Dr Panithan said that he did not know whether the company could be protected as other companies registered in Cambodia.

It is up to the company to file a request for the Cambodian government to consider, said Mr Panithan, adding that the firm’s lawyer and Mr Siwarak’s lawyer are different persons.

Referring to the bail request for detained Siwarak, Mr Chawanon said he expected that the process could be completed next week.

Mr Siwarak’s mother could also probably visit her son next week, Mr Chawanon added.

Relations between the two neighbouring countries have been strained after Phnom Penh rejected a formal request from Thailand to extradite Mr Thaksin during his five-day stay in Cambodia, beginning November 10.

The situation deteriorated when ambassadors of the two countries were recalled. Mr Siwarak was apprehended in Phnom Penh on spying charges on November 12 when he was seen releasing flight information on the fugitive former Thai prime minister, Thaksin Shinawatra’s, to a Thai embassy official.

Thai official confirms Hun Sen's daughter to take over CATS

BANGKOK, Nov. 21 (Xinhua) -- Cambodian Prime Minister Hun Sen's daughter plans to hold shares in Cambodia Traffic Air Services (CATS) after the Cambodian government has temporarily taken over management of the firm, a Thai senior official confirmed Saturday.

Panitan Wattanayakorn, Thai acting government spokesman confirmed the news report that Hun Sen's daughter is planning to hold shares in CATS.

Having controlled CATS by the Cambodia government occurs after Siwarak Chothipong, a 31-year-old-Thai man, who worked as engineer at CATS, has been arrested from Nov. 11, according to the arrest warrant of prosecutor of Phnom Penh Municipality Court.

Cambodia has charged Siwarak of having had confidential information affecting Cambodia's national security, a senior Thai official said Wednesday.

According to a news report by the Khmer language newspaper Rasmei Kampuchea, Siwarak spied through copying the letters of flights of former Thai Prime Minister Thaksin Shinawatra in Cambodia and Hun Sen from CATS which has duties to control all flights in country and he sent those reports to Thailand.

Siwarak has been detained in a prison in Phnom Penh since last week as the Thai government is now in the process of seeking a release for him.

Chawanon Intarakomalsut, Thai Foreign Minister's secretary said he expected that the process could be completed next week and the engineer's mother could probably visit her son next week.

He also said it would be difficult for any individual to take over the company, but his ministry would try to assist CATS. So far the company has not requested help.

Panithan said that he did not know whether the company could be protected as other companies registered in Cambodia, and it's up to the company to file a request for the Cambodian government to consider.

Thailand and Cambodia have downgraded their diplomatic relations due to conflict over an appointment of Thaksin as an economic advisor to Cambodia's government and Hun Sen on Nov. 4.

A day after the appointment of Thaksin, the Cambodian government announced recall of its ambassador to Thailand in a move to respond to the Thai government's recall of its ambassador to Cambodia.

Thaksin was ousted by the military coup in September 2006, in accusation of corruption, and has been kept in exile since then. He returned to Thailand in February 2008 to face corruption charges, but he later fled into exile again and was convicted in absentia.

Cambodia confirms takeover of air traffic company

2009-11-20
By SOPHENG CHEANG
Associated Press

The Cambodian government on Friday confirmed its temporary takeover of management of the country's air traffic control company after one of its Thai employees was arrested last week on a spying charge.

The move complicates a diplomatic row between Thailand and Cambodia over Phnom Penh's recent welcome to former Thai Prime Minister Thaksin Shinawatra, a fugitive from Thai justice.

Tekreth Samrach, a deputy minister of the Council of Ministers, said the government took the action against Thai-owned Cambodia Traffic Air Services _ CATS _ for the sake of national security and flight safety. Nine Thai employees of the firm were also banned from the workplace, he added.

A CATS employee, Siwarak Chutipong, was arrested last week for allegedly passing secret information about Thaksin's flight schedule to the Thai Embassy. Thaksin is a fugitive on a Thai corruption charge.

Cambodia this month named Thaksin an adviser on economic affairs. The appointment, and a subsequent visit by Thaksin, set off a diplomatic imbroglio in which the two countries recalled their ambassadors. A Thai court last year sentenced Thaksin in absentia to two years in prison for violating a conflict of interest law, but he fled into exile before the verdict.

Relations were strained further when Cambodia rejected a formal request from Bangkok to extradite Thaksin. The situation worsened when Cambodia expelled a Thai diplomat and arrested Sirawak.

"We need to secure the national security of our country and our leaders' safety. This is a national security concern _ very important," Tekreth Samrach said at a press briefing, adding that the measures against CATS were only temporary.

He said the takeover was implemented about a week ago and legal experts are now studying how long it should last, or whether the government should end the concession for air traffic control held by the Thai company Samart.

The nine Thai employees have not been fired, he said, but only asked not to come into the CATS office.

Kao Sopha, a Cambodian lawyer for the detained Thai man, said separately that he would submit an application Monday to have his client released on bail.

He said that Siwarak was in good health when he went to see him Friday morning at Prey Sar prison, but that he strongly desires to be released.

It is not clear when Siwarak might face trial. Cambodian officials say he is still under investigation.

Abhisit confident CATS takeover won't worsen spat

20/11/2009
Bangkok Post

Prime Minister Abhisit Vejjajiva says he is confident Cambodia's move to take over air traffic operations from a Thai firm will not worsen the bitter spat between the two countries.

The prime minister said there was no sign that what happened to Cambodia Air Traffic Service (CATS) would erode the confidence of other Thai businesses operating in the country.

The Cambodian government on Wednesday ordered all Thai officials of CATS to stop work. The order followed Phnom Penh's decision to charge Sivarak Chutipong, a CATS engineer, with spying by allegedly supplying the classified flight plan of convicted former prime minister Thaksin Shinawatra to a Thai diplomat.

Executive vice chairman of Samart Corporation Plc Sirichai Rasameechan told the Stock Exchange of Thailand yesterday that a senior civil aviation official of the Cambodian government had taken over the operations.

"Samart Corporation Plc has been closely cooperating with the Thai government to help negotiate with the Cambodian government for the release of Mr Sivarak and resolve this incident," he said in a statement.

CATS is a wholly-owned subsidiary of Samart. It has a contract to provide air traffic control services in Cambodia for 32 years, from 2001 to 2033. Revenue from the Cambodian operation was about 800 million baht last year, about 5% of the group's consolidated revenues.

Despite Mr Abhisit's optimism, Foreign Minister Kasit Piromya sent a strong message to Phnom Penh on the issue, saying Cambodia should respect the Investment Promotion and Protection Agreement made with Thailand.

"The decision must be in tandem with the Investment Promotion and Protection Agreement. If it is not, then we need to find a way to take action," Mr Kasit said.

Mr Kasit also challenged the Puea Thai Party to reveal what it claimed was a secret tape recording of his conversation with the embassy in which he allegedly tried to obtain Thaksin's flight details.

Puea Thai MP Jatuporn Prompan claimed the Cambodian government had an audio clip of Mr Kasit.

"I am dying to listen to my voice. Does Mr Jatuporn work for Cambodia?" Mr Kasit asked reporters.

Mr Kasit said the ministry was waiting for confirmation from Cambodian authorities about when the detained Thai engineer could receive visitors.

The government plans to arrange for his mother, Simarak na Nakhon Phanom, to travel to Prey Sar prison in the Cambodian capital to visit her son.

Mr Kasit rejected an offer by Puea Thai chairman Chavalit Yongchaiyudh to help bring Mr Sivarak back home, saying it was not Gen Chavalit's responsibility. The government was taking care of it.

Thai PM: Gov't seeking ways to help Thai firm in Cambodia

November 19, 2009
Xinhua

The Thai Foreign Ministry has been instructed to help solve a problem at Cambodia Air Traffic Services Co Ltd (CATS) after the Cambodian government takes control of CATS, Premier Abhisit Vejjajiva said Thursday.

The Cambodian government has appointed a supervisor to oversee CATS, while Thai employees have not been allowed to continue working in the firm, Thai News Agency reported.

The Thai Foreign Ministry will look into agreements concerning investors' protection as CATS will consult with the ministry on how it can regain its own right, Abhisit said.

Cambodia Air Traffic Services Co Ltd is a wholly-owned unit of Thailand's Samart Corporation.

Abhisit said the Thai government has been working how to deal with Cambodia, which has claimed that the Cambodian government's action on CATS is concerned with security.

Having controlled CATS by the Cambodia government occurs after Siwarak Chothipong, a 31-year-old-Thai man, who worked as engineer at CATS, has been arrested from Nov. 11, according to the arrest warrant of prosecutor of Phnom Penh Municipality Court.

Cambodia has charged Siwarak of having had confidential information affecting Cambodia's national security, a senior Thai official said Wednesday.

According to a news report by the Khmer language newspaper Rasmei Kampuchea, Siwarak spied through copying the letters of flights of former Thai Prime Minister Thaksin Shinawatra in Cambodia and Prime Minister Hun Sen from CATS -- Cambodia Air Traffic Services Co Ltd which has duties to control all flights in country and he sent those reports to Thailand.

Siwarak has been detained in a prison in Phnom Penh since last week as the Thai government is now in the process of seeking a release for him.

Thailand and Cambodia have downgraded their diplomatic relations due to conflict over an appointment of Thaksin as an economic advisor to Cambodia's government and Prime Minister Hun Sen on Nov.4.

A day after the appointment of Thaksin, the Cambodian government announced recall of its ambassador to Thailand in a move to respond to the Thai government's recall of its ambassador to Cambodia.

Thaksin was ousted by the military coup in September 2006, in accusation of corruption, and has been kept in exile since then.

He returned to Thailand in February 2008 to face corruption charges, but he later fled into exile again and was convicted in absentia.

Thailand 'extending every effort' to help Thai detained in Cambodia

BANGKOK, Nov 19 (TNA) - The Thai government has extended every effort to help Thai engineer detained on espionage charges in Cambodia as close coordination carried out between legal officers at the Thai Embassy in Phnom Penh and his employer, affirmed Dr Panitan Wattanayakorn, deputy secretary-general to the prime minister.

Cambodia Air Traffic Services (CATS) employee Siwarak Chutipong, 31, was arrested in Phnom Penh on spying charges last week when he was discovered releasing Thaksin Shinawatra’s flight schedule to a Thai embassy official in Phnom Penh.

Dr Panitan, who is also acting government spokesman, told reporters that Thailand's agencies concerned had working together to help release Mr Siwarak.

As for the report that Cambodian soldiers raided the CATS office, Dr Panitan said he believed it was done under Cambodian legal procedures to find evidence to support the accusation.

He added that the incident was not serious to the extent that the Cambodian government would revoke the CATS contract.

CATS is wholly-owned by the Samart Corporation and received a concession from the Cambodian government to supply aeronautical radio and air traffic control services to Cambodia.

Asked whether convicted ousted premier Thaksin Shinawatra posted gossip on twitter, a social networking website, that he would visit the Thai-Cambodian border, would cause more problem, Mr Panitan said the government did not want the relationship between Thailand and Cambodia to further deteriorated further.

However, the former premier would be arrested if he entered Thai soil and stayed at border line in the northeastern region, he said.

Meanwhile, Thai Prime Minister Abhisit Vejjajiva affirmed that the government would care for Thai investors in Cambodia.

The control of CATS by Cambodian authorities and Thai employees were not allowed to enter the company was considered the Cambodian security measure as the Thai engineer's charge involved its national security, he said.

He had asked to Ministry of Foreign Affairs to see the agreement on investor protection and CATS planned to later consult with the ministry on how to protect its concession in Cambodia.

Cambodia takes over Thailand-run company as row deepens

Thursday, 19 November 2009
BBC News

New turbulence has hit the Thai-Cambodian relationship

Cambodia has taken over the running of the country's Thai-owned air traffic control firm, in a deepening row between the two neighbouring countries.

Cambodia also barred all Thai employees from turning up for work and put a Cambodian national in temporary charge.

The move comes a day after a Thai engineer working for the firm in Phnom Penh was formally charged with spying.

It is said he passed on details of last week's flight to Cambodia by former Thai Prime Minister Thaksin Shinawatra.

Mr Thaksin, who is wanted in Thailand to serve a jail sentence for corruption, spent five days in Cambodia in his new role as an economic adviser.

'Seizing firm'

On Thursday, the government in Phnom Penh appointed a senior Cambodian civil servant in temporary charge of Cambodia Air Traffic Services (Cats) - a Thai-owned and Thai-operated firm.

It also suspended all Thai nationals from performing their duties.

Thai Foreign Minister Kasit Piromya urged Cambodia to respect bilateral deals, regulating the running of Cats.

"The ministry is waiting for reports from the Thai embassy and we will also have to get clarification from the Cambodian government. If it violates bilateral agreements, then we will find way to proceed," the minister told reporters.

"Cambodia is a market economy. Just seizing (a firm) would not seem right," he added.

Internal politics

Phnom Penh's move is said to be temporary pending the outcome of a legal case against a Thai engineer who works for the company, the BBC's Rachel Harvey in Bangkok reports.

Siwarak Chothipong, 31, a Cats employee, was on Wednesday charged with spying.

He is currently under arrest, accused of passing the flight details of Mr Thaksin to a Thai diplomat.

Mr Thaksin's presence across the border infuriated the Thai government, which claims he should have been extradited to serve a two-year jail term.

The former Thai prime minister was ousted in a coup in 2006, and subsequently found guilty in absentia on conflict of interest charges.

Local newspaper reports in Thailand suggest the current Thai government and Mr Thaksin are now competing to offer help to the detained engineer and his family, our correspondent says.

Rachel Harvey adds that this is an indication that the row is as much about the internal politics of Thailand as it is about cross-border rivalries.

Cambodia takes control of CATS

19/11/2009
Bangkok Post

Cambodia has taken control of Cambodian Air Traffic Services (CATS), a wholly owned subsidiary of Thailand's Samart Corporation, and appointed a senior Civil Aviation official as its temporary caretaker, Samart said in a statement on Thursday.

Cambodian authorities ejected all Thai employees from their offices at CATS on Wednesday after Phnom Penh filed formal charges against Siwarak Chutipong, a Thai engineer working for the air traffic control firm, accusing him of spying.

"The caretaker has prohibited Thai expatriates from performing their duties," Samart vice-chairman Sirichai Rasameechan said in a statement filed with the Stock Exchange of Thailand, where the company is listed.

CATS has a 32-year concession (2001-2033) to provide air traffic control services under a build, cooperate and transfer arrangement with the Cambodian government. Revenue from the operation this year contributed about 5 per cent of the group's earnings.

The deal was covered by an investment protection agreement between the two countries, he said. Samart was seeking the government's help to end the problem.

"Samart has been closely cooperating with the Thai government to help negotiations with the Cambodian government for the release of Mr Sivarak and to resolve this incident," the statement, which was issued in Thai, said.

Foreign Minister Kasit Piromya insisted that Cambodia must comply with the law in ejecting Thai nationals from their jobs at CATS, replacing them with Cambodians and seizing the company's equipment.

Kasit said any action against the company and its employees must be strictly according to the law and comply with Cambodia's own investment and internal affairs regulations.

"The ministry is waiting for reports from the Thai embassy and we will also have to get clarification from the Cambodian government. If it violates bilateral agreements, then we will find ways to proceed from there," he told reporters.

"Cambodia is a market economy," he added. "Just seizing [a company] would not seem right."

The Foreign Ministry had sent the Consular Affairs Department deputy director-general to see Mr Sivarak's mother in Nakhon Ratchasima. Mr Kasit said Prime Minister Abhisit Vejjajiva had promised Mr Sivarak's mother that he would visit her detained son if possible.

The government had to wait for Cambodia's confirmation of a time for the meeting with Mr Sivarak. The ministry had also hired a lawyer to liaise with Samart about the problem.

"There are, however, no problems with Thai-Cambodian relations," he insisted.

Chavanond Intarakomalyasut, secretary to the foreign minister, denied Puea Thai Party MP Jatuporn Promphan's claim that Mr Kasit had ordered the Thai embassy's first secretary Kamrob Palawatwichai to find out the flight schedule of ousted premier Thaksin Shinawatra.

Mr Chavanond challenged Mr Jatuporn to make public a copy of the tape he claimed to have of the conversation, and slammed Mr Jatuporn's statement as "nonsense".

He said the Foreign Ministry is providing assistance for Mr Sivarak and finding a lawyer to defend him.

The ministry this morning asked the Cambodian government to allow Mr Sivarak's mother to visit her son in Prey Sar prison.

The Thai engineer is accused of "stealing classified information affecting national security" by passing details of Thaksin's and Cambodian Prime Minister Hun Sen's flight plan to an official at the Thai embassy.

Kasit: Banning Thai workers must be lawful

19/11/2009
Bangkok Post

Foreign Minister Kasit Piromya insisted on Thursday that everything must be in line with the law after the Cambodian government prohibited Thai nationals from working at Cambodian Air Traffic Services (CATS), which is operated by Thailand's Samart Corporation.

The Cambodian government ordered the air traffic control company to ban Thai workers from performing their duties and replace them with Cambodian workers. All the company's tools and equipment were also seized.

The orders must be in accordance with Cambodia's investment and internal regulations, Mr Kasit said.

"As for Thailand, we'll have to wait for reports from the Thai Embassy to Phnom Pehn. We hope that we'll receive factual information from Cambodia and [Smart] company," he said. "If the orders do not follow the bilateral agreement of the two countries, we'll have to find other ways to continue."

The Foreign Ministry had sent Consular Affairs Department deputy director-general to meet with the mother of Thai engineer Siwarak Chothipong, who was arrested by the Cambodian government last week on spy charges.

Mr Kasit said Prime Minister Abhisit Vejjajiva had promised Mr Siwarak's mother that he will visit her detained son.

He said the government had to wait for Cambodia's confirmation on the time of the meeting with the engineer, but the ministry had also hired a lawyer to discuss this problem with the company.

"There are no problems in the Thai-Cambodian relations," he added.

SAMART Operates Businesses in Cambodia As Usual after Cambodian Govt Takes Temporary Control

19 November 2009
Thai-ASEAN News Network

A Thailand-based telecommunications firm, Samart Corporation, confirms its air traffic services business in Cambodia is operating as usual after the Cambodian government takes temporary control of the business.

It expects the problem of the company's arrested engineer will come to an end soon.

Managing Director of Samart Corporation Watchai Vilailuck revealed that Cambodia has decided to take temporary control of the company's subsidiary, Cambodia Air Traffic Services or CATS, after one of the firm's engineers, Siwarak Chutiphong, was arrested by Cambodian authorities on charges of spying.

Watchai said the company was gathering facts, and it has coordinated with the Thai government in contacting Cambodia to ease the situation concerning the legal charges against Siwarak as the matter is related to the national security.

Currently, CATS' operation is still running, but Thai employees are not allowed to perform their duties.

He supposed that cooperation from related parties will help the company from possible impacts to the business operation, and insisted the company had no involvement in the case.

Cambodia takes reins of Thai-owned firm as row deepens

By Viparat Jantraprap

BANGKOK, Nov 19 (Reuters) - A diplomatic row between Cambodia and Thailand has moved into the skies after Phnom Penh took control of a Thai-operated air traffic control company at the centre of spying allegations.

The Cambodian government has appointed a senior Civil Aviation official as temporary caretaker for Cambodia Air Traffic Services (CATS), a wholly owned unit of Thailand's Samart Corporation Pcl, Samart said on Thursday.

All Thai expatriates at the company have been banned from performing their duties, it added.

The neighbouring countries are embroiled in a diplomatic row that began in October when Cambodian Prime Minister Hun Sen offered fugitive former Thai premier Thaksin Shinawatra a job as an economic adviser and a home just across the border. Thaksin, twice elected but deposed in a 2006 military coup and sentenced last year to two years in jail for graft, has been living in self-imposed exile, largely in Dubai. He spent five days in Cambodia last week, infuriating the Thai government.

A Thai engineer working for CATS has been accused of sending Thaksin's flight schedule to a Thai diplomat, who was expelled by Phnom Penh, and violating Cambodian national security laws.

Samart, 19 percent owned by Malaysian telecommunications firm Axiata Group (AXIA.KL), said on Thursday it was seeking support from the Thai government on negotiating with Cambodia for the release of the 31-year-old engineer, Siwarak Chutipongse.

"Samart has been closely cooperating with the Thai government to help negotiate with the Cambodian Government for the release of Mr. Siwarak and resolve this incident," it said in a statement to the stock exchange.

CATS provides air traffic control services with a 32-year concession (2001-2033) under a build, cooperate and transfer arrangement with the Cambodian government, with revenue from the operations this year contributing about 5 percent to the group.

The investment is covered by an investment protection agreement between the two countries, it said.

Thaksin's brief presence in Cambodia fired up passions on both sides of Thailand's political divide, drawing attention to a border where Thai and Cambodian troops have clashed in the past year and causing each country to recall its ambassador.

(Editing by Jason Szep)

Cambodia appoints representative to oversee Thai firm

BANGKOK, Nov 19 (TNA) – The Cambodian government has appointed a supervisor to oversee Cambodia Air Traffic Services (CATS) and is not permitting Thai employees to perform their duties in the firm following an arrest of a Thai engineer for on espionage charges, according to Samart Corporation PCL.

Despite assurances that the company is and its employees are not spying on Cambodia, CATS itself, wholly-owned by the Samart Corporation, is coming under further pressure in the diplomatic standoff.

CATS employee Siwarak Chutipong, 31, was arrested in Phnom Penh on spying charges last week after he was discovered releasing Thaksin Shinawatra’s flight schedule to a Thai embassy official in Phnom Penh.

The self-exiled, convicted former Thai premier himself departed Cambodia last week, but remains at the centre of Thai-Cambodian relations

Samart Corporation president Wattanachai Wilailak said the company is examining facts on the matter and has asked the Thai government to liaise with its Cambodian counterpart to ease the situation.

However, Mr Wattanachai affirmed that CATS is open for business as usual.

Commenting on Mr Siwarak’s arrest, he said since the case is a national security for Cambodia, the company is liaising with the Foreign Ministry for fact-finding and negotiations with Phnom Penh.

“Now, all parties concerned are making an all-out effort to help Mr Siwarak, who is detained by Cambodian authorities. It is expected there will be good news soon,” he said.

Mr Wattanachai said the Samart Corporation had otherwise not been affected by the case, nor have other businesses the company conducts in Cambodia.

Samart subsidiary CATS runs a system installation business and provides air traffic control services in Cambodia under a 32-year concession from 2001 ending in 2033.

Thailand and Cambodia have an Investment Protection Agreement to oversee their mutual interests.

Samart builds Cambodian empire without Thaksin's help [-The sh_t hits the fan among Cambodia's corrupt officials?]

Sun Chanthol, a former Funcinpec minister, defected to join the CPP following Funcinpec's demise. He is now a minister without portfolio in Hun Xen's regime. What The Nation failed to mention is that Samart's Siam Cement plant is a joint venture with Cambodia's Khaou Chuly group and Khaou Chuly happens to be Sun Chanthol's father-in-law. (Photo: The Phnom Penh Post)

November 19, 2009
By Usanee Mongkolporn
The Nation

While rumours fly that Samart's ties with ousted prime minister Thaksin Shinawatra and Cambodian Prime Minister Hun Sen are close enough to fake the arrest of its employee, an investigation by The Nation tells a different story.

Samart embarked on expansion into the neighbouring country through Charoenrath Vilailuck's personal connection to Cambodian politician-cum-businessman Sun Chanthol.

Chanthol, a Harvard University graduate, was known for his business smarts. He was the public-works and transport minister until last year.

Charoenrath is the older brother of Watchai, CEO of Samart.

Through the connection with Charoenrath, Cambodia handed the company a concession for the nascent mobile-phone market, and Cambodia Samart Communications was born in 1992.

The following year, Cambodia Shinawatra was set up as a subsidiary of Shin Satellite to penetrate the mobile-phone market in the neighbouring country.

Telecom insiders recall Chanthol was a close aide to Prince Norodom Ranariddh, who was prime minister before Hun Sen took power.

"The connection led to the air-traffic-control concession going to Samart in 2001," a source said. "Samart indeed entered the country before Thaksin."

In that year, Cambodia Air Traffic Services (CATS) was formed to run the 22-year concession. Thaksin was present at the ceremony when Cambodia extended the concession from 15 years to 22.

Back then, Shin Corp, Thaksin's family business, faced troubles in expanding there when the mobile-phone concession was shortened.

From CATS, Samart moved to building a power plant to support the Siam Cement Group's new plant there.

The Vilailuck family also won a 99-year concession to open a museum in Siem Reap, but it has performed badly financially, because visitors tend to flock to a South Korean museum nearby.

This explains why Watchai was in the hot seat and cried for help when his business was tampered with by the Cambodian government. Without any political involvement now, he is seeking to further distance Samart from politics.

Samart seeks Govt help

November 19, 2009
By Sirivush Toomgum
The Nation

Samart president Watchai Vilailuck is seeking the government's help now that Cambodia has decided to take temporary control of his firm's subsidiary, Cambodia Air Traffic Services (CATS).

In a phone interview, he said the company was gathering facts on the move and has been coordinating with influential figures in the Thai government. It is also asking the Cambodian government for help.

Though CATS is still in operation, none of its nine or 10 Thai employees is allowed on the premises.

"The company's office was set ablaze once in 2003. We don't know what will happen this time. Cambodia has said this is temporary, but they have not set a specific period. We need to continue negotiating and the Thai government must help restore the confidence of Thai businessmen overseas. I don't know how we can be political victims, when we have insisted all along that we have nothing to do with politics," he said.

Watchai also flatly denied that Samart might have set up the whole arrest and commotion to please former prime minister Thaksin Shinawatra.

"We're just investors and have never been involved in politics. We'll never have our firm - a listed one - get involved in politics. What benefit will we get from doing something that might severely affect our business? We have already informed the Thai government that we're being affected by politics. We're the victims here, it's not our fault," he added.

He said his firm had already tried to set up a meeting with high-ranking Cambodian government officials to clarify that it had nothing to do with the case of Siwarak Chotipong, but it has yet to be granted permission to meet them. Siwarak was arrested for allegedly providing the Thai Embassy in Phnom Penh with details of Thaksin's itinerary.

CATS is protected by the Thailand-Cambodia investment-protection agreement, he said, adding that the Cambodian government could not terminate the concession as long as CATS does not violate the concession contract. Samart has already hired an international-law expert to look into the matter.

He added that he had no idea how long the problem would last, and that the company was waiting to see how the Thai government proceeded.

The Cambodian government has appointed a senior civil aviation official as a temporary caretaker to oversee the operations to ensure uninterrupted services over Cambodian air space.

CATS is a wholly owned subsidiary of Samart, providing air-traffic control services with a 32-year concession under a build, co-operate and transfer model with Cambodia.

Samart is 18.96 per cent owned by Axiata Group, a large Malaysian Telecom Group.

Cambodia strains ties even more [-Hun Sen afraid that his flight path could be sent to Bangkok?]

All Thai staff banned from air traffic office

19/11/2009
Bangkok Post

Cambodia intensified the diplomatic spat with Thailand yesterday when authorities in Phnom Penh expelled all Thai officials from their offices at Cambodia Air Traffic Services.

The order by the Cambodian government came after Phnom Penh filed charges yesterday against Sivarak Chutipong, a Thai engineer working for CATS.

"Cambodia has charged him with stealing classified information affecting national security," said Chavanond Intarakomalyasut, the secretary to the foreign minister.

The Cambodian government ordered Thai nationals working for CATS to immediately leave the company and prohibited them from re-entering until the legal proceedings against Mr Sivarak are completed, Samart Corporation Plc president Watchai Wilailuck said.

CATS, a fully owned subsidiary of Bangkok-based Samart, has been granted a 32-year air traffic control concession.

The firm employs nine Thai officials at the Cambodian airport, all of them either in management or senior engineering positions. About 200 other staff members are Cambodians.

Mr Watchai was told Cambodian authorities would send their own people to operate the company.

"We need to follow Cambodia's order and are asking the Thai government to help negotiate with the Cambodian government to solve the problem because it is affecting a private business which has nothing to do with the state dispute," Mr Watchai said.

Thailand and Cambodia are signatories to the Investment Protection Agreement to protect each other's private businesses.

Prime Minister Abhisit Vejjajiva said the Foreign Ministry has been ordered to look into the problem of CATS.

Mr Sivarak was arrested on Nov 12 for allegedly obtaining confidential information about the flight details of convicted former prime minister Thaksin Shinawatra and supplying it to the Thai embassy in Phnom Penh.

The Cambodian government also expelled the embassy's first secretary, Kamrob Palawatwichai and Thailand retaliated with the same measure.

The 31-year-old detainee and the Thai Foreign Ministry have denied the accusations.

Deputy ministry spokesman Thani Thongpakdi said the ministry was helping to find Mr Sivarak a lawyer. Cambodian law requires his legal representative to be a Cambodian national.

"The Thai side still believes in Cambodia's judicial process and hopes Phnom Penh will be fair to Mr Sivarak," Mr Thani said.

Thaksin wrote in his Twitter page yesterday he had contacted Cambodian leaders to find ways to help the Thai engineer being detained at Prey Sar prison in Phnom Penh.

"I've been in touch with them. They said they would investigate first and will treat him fairly," he said in his posting.

Mr Abhisit refused to comment on the assistance by Thaksin to help secure the release of the engineer and said the government's actions had been helping to improve the situation for Mr Sivarak.

But Mr Sivarak's mother, Simarak na Nakhon Phanom, thanked Thaksin for his efforts to help secure the release of her son.

Deputy director-general of the Consular Affairs Department Madurapochana Ittarong was helping Mrs Simarak and Mr Sivarak's younger sister to obtain access to him in Phnom Penh.

Puea Thai Party chairman Chavalit Yongchaiyudh also offered to help in talks with the Cambodian government.

Mr Thani said Gen Chavalit's offer was welcome.

The latest conflict between the Thai and Cambodian governments started last month when Cambodian Prime Minister Hun Sen made Thaksin an economic adviser to himself and to his government. Thailand was offended when Hun Sen said Thaksin's corruption case was politically motivated and refused to hand him over to Bangkok.

The fugitive prime minister left the Cambodian capital for Dubai on Saturday.

Puea Thai MP Jatuporn Prompan yesterday claimed the Cambodian government had an audio clip of Foreign Minister Kasit Piromya ordering Mr Kamrob to seek the flight schedule of the ousted prime minister.

But Mr Thani denied the claim.