BANGKOK - PROSECUTORS dropped fraud charges against ousted premier Thaksin Shinawatra on Wednesday, hours after a Thai court issued a fifth warrant for his arrest.

The attorney general's office said there was not enough evidence against Thaksin, his family or his employees to proceed with the case involving the listing of shares sold in Shin Corp subsidiary, SC Asset.

'The evidence in the documents was not sufficient to proceed the case to the court,' said spokesman Thanapich Mulapruek.

Thaksin, his wife Pojaman Shinawatra and sister-in-law Busaba Damapong were accused of breaching the Securities Exchange of Thailand Act by fraudulently filling out information notices on sales of shares in SC Asset.

The decision to drop the case must now be approved by the department of special investigation, which could in theory return it to the attorney general for further consideration.

Earlier Wednesday a Thai court issued a fifth arrest warrant for the former premier after he failed to appear in a case accusing him of amending tax policy to enrich his business empire.

Thaksin fled to Britain with his family in August and is seeking political asylum, arguing that he would not get a fair trial on the corruption charges mounting against him here but prosecutors have forged ahead with the case.

Thaksin already has four other arrest warrants outstanding on a variety of corruption cases, and his wife Pojaman was on July 31 convicted of tax evasion and sentenced to three years in jail.

She appealed but analysts have said the court decision against her stunned Thaksin and helped spark the couple's flight into exile. -- AFP