Embattled Thai bank governor resigns
Embattled Thai bank governor resigns
BANGKOK (AFP): Thailand's embattled central bank chief, Vijit
Supinit, resigned yesterday after months of rumors and growing
criticism about his handling of a commercial bank scandal.
His credibility rocked by a sequence of controversies, ranging
from personal share purchases to the sacking of his former
deputy, Vijit was under mounting political pressure to move over,
market analysts said.
"There has been a cloud of bad news following him about. His
resignation could be a breath of fresh air for the government and
for the market," said one.
The first-ever Bank of Thailand governor to quit, Vijit gave
no reason in a letter of resignation to Finance Minister Bodi
Chunanonda that followed cabinet discussion of his position.
Some analysts, though, were quick to see him as a scapegoat
for the country's economic downturn and low investor confidence.
"Vijit was facing political pressure. The government faces a
no-confidence motion this month, and ousting him could be one way
of boosting its image," said Bounsom Kasrapradit of Asia Credit
Finance and Securities.
The central bank's handling under Vijit of the ailing Bangkok
Bank of Commerce (BBC), which was revealed in parliament in mid-
May as having bad and doubtful loans of 4O billion baht (US$1.6
billion), has come under question.
Opposition MPs, who accuse members of the ruling coalition
government of obtaining loans from BBC with inadequate
collateral, have also criticized the central bank's slow
intervention in the scandal.
They alleged that Vijit knew that BBC executives had violated
commercial banking laws but did not act.
BBC is now in the hands of a control committee appointed by
the finance ministry. Six of its leading executives have been
charged with embezzlement of 1.6 billion baht of the bank's
funds.
Earlier controversy that cast doubts about Vijit's standing as
central bank chief was the sacking last December of his deputy,
the secretary-general of the Securities Exchange Commission,
Ekamol Kiriwat.
Ekamol was accused of leaking official information on the
status of two other troubled financial institutions -- one being
BBC -- in December 1994.
Vijit was suspected of contributing to Ekamol's dismissal, but
publicly denied it.
The former central bank's private financial dealings have also
been under the microscope.
The Nation daily reported that Vijit subscribed to Siam City
Finance and Securities stocks at par value, an allegation that
has dogged him since early on in his four-year tenure of
governor.
Finance Minister Bodi told reporters that he would propose
possible successors to Vijit to a cabinet meeting next Tuesday.
Vijit's deputy, Rerngchai Marakanond has been appointed by
Bodi as acting governor of the Bank of Thailand and is a possible
candidate to be Vijit's successor. He was described by one market
analyst as "low profile and highly-regarded -- just the kind of
man they need."
Other possible candidates include Finance Permanent Secretary
Chatumongkol Sonakul and another deputy governor of the central
bank, Chaiwat Vibonsawat.