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Rakesh Saxena and the Thai banking scandal that triggered Asia’s financial crisis

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webfact Grand Master Member

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By Thai PBS World’s Business Desk

 

Once known as a “financial wizard”, Indian-born Rakesh Saxena now faces decades in jail for a Thai banking scandal that triggered the 1997 Asian financial crisis.

 

Following a legal battle that dragged on for 26 years, the Supreme Court on September 12 finally sentenced Saxena to 335 years in jail over three lawsuits stemming from the Bangkok Bank of Commerce (BBC) embezzlement scandal.

 

Although the jail sentence of over three centuries was upheld, the 70-year-old will serve only 20 years behind bars, the maximum term under the Thai Penal Code.

 

Working his way up the ladder

 

From 1974 to 1985, Saxena worked as a foreign exchange dealer and money market broker in India, Singapore, Hong Kong, and London. He later moved to Thailand to work as a newspaper financial columnist and consultant to financial institutions.

 

In 1989, while living in Bangkok, he met and befriended Krirkkiat Jalichandra, who had just been appointed as the BBC’s senior vice-president. In 1992, Saxena became a personal advisor to Krirkkiat, who had since been promoted to BBC president.

 

The bank at that time was owned by the family of Krirkkiat’s mother. In his book “BBC Truth”, Krirkkiat wrote that his maternal grandfather, the late former prime minister MR Kukrit Pramoj, had told him: “You have to help with Granddad’s work at the bank.” Krirkkiat had earlier worked at the Bank of Thailand for over a decade.

 

Full story: https://www.thaipbsworld.com/rakesh-saxena-and-the-thai-banking-scandal-that-triggered-asias-financial-crisis/

 

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-- © Copyright Thai PBS 2022-09-26
 

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nigelforbes Platinum Member

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3 minutes ago, nobodysfriend said:

He is 70 years old now , he would be 90 then ... no fun .

Why did it take 26 years to find him guilty ?

What happened to him and where has he been these 26 years ?

He escaped to Canada, it took a long time before he was able to be successfully extradited and tried in Thailand.

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jacko45k Star Member

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3 minutes ago, ThailandRyan said:

So who will be to blame that the USD has hit 37.76 Thb to the $1 this morning.  He should have been prosecuted in absentia and sentenced just like they did for Thaksin...

I think it is more to do with the actions of the USA, rest of the world cannot keep up with their interest rate hikes. Sterling actually dipped below $1.05 this morning too... that is due to actions in UK as well,

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ThailandRyan Star Member

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4 minutes ago, jacko45k said:

I think it is more to do with the actions of the USA, rest of the world cannot keep up with their interest rate hikes. Sterling actually dipped below $1.05 this morning too... that is due to actions in UK as well,

The rest of the world needs to up their rates if they want to stay ahead of the impending recession which will be hitting by the end of the year in many countries.  It is also why many governments are changing leaders as folks see the inaction affecting them daily.

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wwest5829 Platinum Member

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1 hour ago, ThailandRyan said:

So who will be to blame that the USD has hit 37.76 Thb to the $1 this morning.  He should have been prosecuted in absentia and sentenced just like they did for Thaksin...

Good news for my monthly retirement transfers, further good news that my USA Social Security should get a nice bump next year. Bad news? Ah, ... well, the portfolio is down $80,000 USD from its high! Big ouch.

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zzaa09 Star Member

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4 hours ago, Burma Bill said:

The good days when we ex-pat country bumpkins up north got 89 baht for 1 GBP!

Remembering the day [July ?] they decided to float the Baht during this fabricated and conspiratorial-ladened "crisis". 

Almost overnight, the Baht reaching towards 47/49.....peaking out at around 51 and change. 

Survival mechanisms - 

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d4dang Silver Member

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10 hours ago, Burma Bill said:

The good days when we ex-pat country bumpkins up north got 89 baht for 1 GBP!

Thais were selling anything they could out of the trunks of their cars to make payments on cars, condos, golf memberships and consumer goods. Rolexes were $500 at pawn shops. Foreigners with money were buying cars, motorcycles, fridges and more for 50% discount. Bangkok had hundreds of building sites abandoned. Night life was affordable!

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kwonitoy Gold Member

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22 hours ago, nobodysfriend said:

He is 70 years old now , he would be 90 then ... no fun .

Why did it take 26 years to find him guilty ?

What happened to him and where has he been these 26 years ?

He spent 13 years in Canada fighting deportation while living in Whistler B.C. A very nice, very high end ski resort

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LomSak27 Gold Member

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Moonshine

 

His scandal might have been the tip of the iceberg but that is all it was. This article makes out like he is the root cause of the 97 economic collapse. Thailand always need to find something, someone, some entity, to blame it on, if only to protect the guilty. 

'Non Performing Loans', across the entire Thai banking sector caused the 97 collapse. Get money from the bank and never repay it. Others call it theft. That is what collapsed the economy. Only a certain section of  this class stratified society could get those loans. Wasn't Phim & her noodle shop or Somchais mu todd night market stall, that could get them.

 

25 years on, those people still need to be protected. Amazing Thailand.

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d4dang Silver Member

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On 9/25/2022 at 8:36 PM, nigelforbes said:

He escaped to Canada, it took a long time before he was able to be successfully extradited and tried in Thailand.

I wonder why it took so long?  He spent years in a luxury condo in Vancouver while paying lawyers to drag out his case. Many politicians, hi-sco types and tycoons in Thailand preferred the extradition to be delayed as long as possible. The bank had a license to steal. So how much time will he serve before being released due to health or ? reasons.

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