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.