Somkiat, now a noted economist and president of the Thailand Development Research Institute, said there might not be a problem with the purchase of bonds from a private company from a legal angle, but the public TV station might have made a symbolic gesture suggesting its “support” for the issuer.

The economist said under Article 11 of the Thai Public Broadcasting Service Act, it states clearly the seven primary income sources of the non-profit station, and they include investments.

Overseas, it’s common for public organisations to invest in the capital market, as the return from bank deposits is usually low. Yale University, for instance, has long held capital assets and earned over 10 per cent on its portfolio, he said.

Somkiat said there is another issue to consider; whether the station’s purchase of CPF’s debentures compromise its independence in news reporting.

However, Somkiat pointed that with the purchase of such the debentures, the station is the company’s debtor, not investor or shareholder. The station would receive regular income from the debentures’ interests as if it had deposited the money with a bank. As such, it’s unlikely that the station would lose any of its objectivity.

Nevertheless, it has ethical responsibilities to take into consideration, he said.

In the United States, stakes in funds promoting environmental protection or human rights could mean the investors sympathise with their policies and actions.

Based on the position of the station as a public broadcaster, as well as the company’s past performance and social responsibility, the station should review its purchase of the company’s debentures, he suggested.

Krisda Rueangareerat, a director of Thai PBS, defended the station’s investment decision, saying the annual budget from sin taxes amounting to Bt2 billion is not enough to run the station.

Thai PBS has acquired CPF’s debentures worth Bt200 million.