KING POWER FACES THAI SUIT

Anti-graft official accuses Leicester City's owners of under-declaring revenue to avoid paying 15pc levy

ATHAI anti-corruption official yesterday said he is suing King Power, the duty-free giant that owns Leicester City Football Club, for hundreds of millions of dollars over the alleged underpayment of taxes.

Charnchai Issarasenarak, who leads a junta-appointed antigraft panel, accuses King Power of under-declaring revenue to avoid paying a 15 per cent levy agreed in a 2006 contract to operate in Thailand’s airports.

The allegations amount to a rare attack on an ultra-rich company that dominates Thailand’s duty-free industry and is run by one of the kingdom’s most wellconnected billionaires.

“Based on the contract, in the first five years King Power must share 15 per cent of revenue with the government,” said Charnchai.

But he alleges the firm colluded with Airports of Thailand (AoT) to slash its declared revenue from 2008 onwards “citing sluggish economic conditions” to avoid paying the full sum.

Speaking later to reporters, Charnchai said he was suing on behalf of minority shareholders in AoT who were affected by the alleged corruption which caused “more than 10 billion baht (RM1.2 billion) in damages”.

He confirmed King Power’s founder Vichai Srivaddhanaprabha would be named a suspect in his latest lawsuit — one of five cases his legal team is preparing against the duty free behemoth. An earlier suit — also brought by Charnchai — accuses 14 AoT and Customs officials, as well as King Power executives, of colluding to collect only three per cent of the duty free giant’s annual revenue instead of the contracted 15 per cent.

“That caused some 14 billion baht damage to the state,” he said, explaining the legal move is not motivated by “personal conflict, it’s for the public interest”.

A criminal corruption court will decide whether to accept the cases in coming days.

That caused some 14 billion baht damage to the state. CHARNCHAI ISSARASENARAK

Leads anti-graft panel