Thaksin's Shin Corp. sues media activist

BANGKOK, Aug. 26 (UPI) -- In a lawsuit seen as a bellwether for press freedom in Thailand, the telecoms conglomerate Shin Corp. is suing a media reform activist for $9.6 million.

The group, owned by the family of Thai Premier Thaksin Shinawatra, is suing the Campaign for Popular Media Reform Secretary-General Supinya Klangnarong for libel, The Straits Times reported.

In July last year, she had told the Thai-language daily Thai Post that the Shin Corp. benefited from government policies after Thaksin's Thai Rak Thai party came to power.

This is the second time in two days the Shin Corp. has been embroiled in controversy. Earlier this week, it was reported Myanmar's junta was using a loan from Thailand's Exim Bank to buy services from Shin Satellite, a Shin Corp. company.

The Shin Corp.'s civil suit was filed Sunday - two weeks before Supinya and her co-defendants from the Thai Post start their Sept. 6 criminal libel trial.

Analysts have warned that a verdict in favor of the Shin Corp. would set an ominous precedent in muzzling the news media.