Shin deal 'above board'

The father-in-law and the husband of Temasek Holdings' chief Ho Ching have defended the Singapore government investment arm's disastrous purchase of Shin Corporation from former Thai premier Thaksin Shinawatra.

Singapore's Minister Mentor Lee Kuan Yew -- the father-in-law of Ho Ching, who is married to Kuan Yew's son Hsien Loong, who is the current premier -- said the Shin deal was "above board' tonight.

SINGAPORE'S Minister Mentor Lee Kuan Yew has said that an investment led by investment agency Temasek in Thailand's Shin Corp was 'above board' and would withstand scrutiny.

Temasek Holdings bought a controlling stake in the Thai telecoms firm from former Thai prime minister Thaksin Shinawatra and his family in January, and later increased its stake in a tender offer.

The deal sparked demonstrations in Bangkok against both Singapore and Mr Thaksin, who was ousted in a military coup in September, and led to investigations into whether Temasek had broken Thailand's foreign ownership laws.

'We're completely above board and we can withstand any investigation,' MM Lee said in response to questions following an address on Friday.

Speaking to an audience of university students in Singapore, he said Temasek's purchase of Shin was also carried out in accordance with Temasek's strict internal rules. -- REUTERS

According to earlier media reports, interim Thai PM Surayud Chulanont had told Hsien Loong that he did not see the Shin Corp deal affecting relations between the two countries. The Thai general also reportedly said bilateral relations remained 'excellent' in an earlier posting.