Thai Govt Pension Chief Resigns In Wake Of Investigation

[george]

Thai government pension chief resigns in wake of investigation

BANGKOK: -- Thailand’s Government Pension Fund (GPF) Secretary-General Visit Tantisunthorn on Tuesday revealed he had given his letter of resignation to the chairman of the board of directors to show regret and to take responsibility for any damage incurred by the agency.

A source said Mr. Visit’s resignation took place after the agency moved to examine its performance, especially concerns about losses from its investments.

Headed by GPF board chairman Sompol Kietipaiboon, the ad hoc committee includes representatives of the Ministry of Finance, the Office of the Attorney General, the Bank of Thailand, the Securities and Exchange Commission, the Stock Exchange of Thailand, and the National Police Office.

Mr. Visit was also alleged by the Committee on Prevention and Suppression of Corruption in Public Sector for a purchase and sale of stocks in his private investment portfolio a few days prior to investment by the Fund in the stock market.

Among other concerns, Mr. Visit is alleged by the Committee on Prevention and Suppression of Corruption in Public Sector to have bought and sold stocks in his private portfolio related to investments by the fund in the stock market.

The GPF secretary-general offered apologies, saying he had intended no wrongdoing and had not wished to exploit the fund to his personal advantage. He thanked those who had cooperated in the fund’s performance for nearly eight years.

-- TNA 2009-06-03

[Ricardo]

Mr. Visit was also alleged by the Committee on Prevention and Suppression of Corruption in Public Sector for a purchase and sale of stocks in his private investment portfolio a few days prior to investment by the Fund in the stock market.

Among other concerns, Mr. Visit is alleged by the Committee on Prevention and Suppression of Corruption in Public Sector to have bought and sold stocks in his private portfolio related to investments by the fund in the stock market.

Good to see someone named-and-shamed, for doing something wrong, and also good to see him resign rather than moved-sideways to an inactive-post. Let's hope this starts a trend ... but not hold our breath !

[Old Man River]

Mr. Visit was also alleged by the Committee on Prevention and Suppression of Corruption in Public Sector for a purchase and sale of stocks in his private investment portfolio a few days prior to investment by the Fund in the stock market.

Among other concerns, Mr. Visit is alleged by the Committee on Prevention and Suppression of Corruption in Public Sector to have bought and sold stocks in his private portfolio related to investments by the fund in the stock market.

Good to see someone named-and-shamed, for doing something wrong, and also good to see him resign rather than moved-sideways to an inactive-post. Let's hope this starts a trend ... but not hold our breath !

It says alleged. That doesn't mean guilty.

[DaleBlue]

Go go, front-runner.

[brahmburgers]

More than a few times, a high gov't official leaves his post - right as the sh!t starts hitting the fan. Later, if it's shown he/she did wrong on the job, that person can simply say, "that was then, now is now. I no longer hold that position, so there can be no grounds for prosecution. Same happened when TRT was being dissolved, and wrongdoers were saying essentially the same; "I'm no longer a TRT member, so I cannot be prosecuted for what might have happened back then." It works in Thailand.

If it's proven that former Secretary-General Visit Tantisunthorn did illegal things, he should be prosecuted and suffer the legal consequences of his actions. Excuses and saying 'sorry' doesn't cut the mustard. He's not a 4 year old kid who can get away with stealing a cookie. He's a grown-up who knows the rules.

[Old Man River]

More than a few times, a high gov't official leaves his post - right as the sh!t starts hitting the fan. Later, if it's shown he/she did wrong on the job, that person can simply say, "that was then, now is now. I no longer hold that position, so there can be no grounds for prosecution. Same happened when TRT was being dissolved, and wrongdoers were saying essentially the same; "I'm no longer a TRT member, so I cannot be prosecuted for what might have happened back then." It works in Thailand.

If it's proven that former Secretary-General Visit Tantisunthorn did illegal things, he should be prosecuted and suffer the legal consequences of his actions. Excuses and saying 'sorry' doesn't cut the mustard. He's not a 4 year old kid who can get away with stealing a cookie. He's a grown-up who knows the rules.

On this I agree. Visit is the former regional head of investment for a major MNC and has sat on the boards of several listed companies in Thailand. There is no question that he knows the rules, which is why I am a bit surprised at these allegations. Time will tell how it plays out.

[brahmburgers]

More than a few times, a high gov't official leaves his post - right as the sh!t starts hitting the fan. Later, if it's shown he/she did wrong on the job, that person can simply say, "that was then, now is now. I no longer hold that position, so there can be no grounds for prosecution. Same happened when TRT was being dissolved, and wrongdoers were saying essentially the same; "I'm no longer a TRT member, so I cannot be prosecuted for what might have happened back then." It works in Thailand.

If it's proven that former Secretary-General Visit Tantisunthorn did illegal things, he should be prosecuted and suffer the legal consequences of his actions. Excuses and saying 'sorry' doesn't cut the mustard. He's not a 4 year old kid who can get away with stealing a cookie. He's a grown-up who knows the rules.

On this I agree. Visit is the former regional head of investment for a major MNC and has sat on the boards of several listed companies in Thailand. There is no question that he knows the rules, which is why I am a bit surprised at these allegations. Time will tell how it plays out.

this is how it will play out: he'll be allowed to go out to the golf pasture with no legal repercussions. He'll be doing whatever people do with a big influx of ill-gained money. If a lower-echolon bureaucrat gets caught doing something illegal - that person will be either slightly reprimanded, or sent to the giant Ministry of Inactive Posts. If a higher up like Visit is caught doing something illegal, he's got no hard place to fall. Thai officialdom HATES to allow harsh discipline to go its course - especially among its own members. He'll be out on the links in no time, enjoying his retirement - unless he's assigned to another power position.

[Briggsy]

Actually the fact that he has resigned rather than be removed from post suggests he has a plan here. Many senior civil servants successfully appeal their removal from post years later and are reinstated.

[DaleBlue]

If this is US or UK? He goes to jail.

[Ricardo]

Thailand’s Government Pension Fund (GPF) Secretary-General Visit Tantisunthorn on Tuesday revealed he had given his letter of resignation to the chairman of the board of directors to show regret and to take responsibility for any damage incurred by the agency.

It says alleged. That doesn't mean guilty.

True, but why would he wish "to show regret & take responsibility for any damage incurred by the agency", if he didn't believe himself to be guilty ?

[jayboy]

More than a few times, a high gov't official leaves his post - right as the sh!t starts hitting the fan. Later, if it's shown he/she did wrong on the job, that person can simply say, "that was then, now is now. I no longer hold that position, so there can be no grounds for prosecution. Same happened when TRT was being dissolved, and wrongdoers were saying essentially the same; "I'm no longer a TRT member, so I cannot be prosecuted for what might have happened back then." It works in Thailand.

If it's proven that former Secretary-General Visit Tantisunthorn did illegal things, he should be prosecuted and suffer the legal consequences of his actions. Excuses and saying 'sorry' doesn't cut the mustard. He's not a 4 year old kid who can get away with stealing a cookie. He's a grown-up who knows the rules.

On this I agree. Visit is the former regional head of investment for a major MNC and has sat on the boards of several listed companies in Thailand. There is no question that he knows the rules, which is why I am a bit surprised at these allegations. Time will tell how it plays out.

It's not really clear to me what Visit is meant to have done wrong.Press reports suggest that GPF management had delegated authority to acquire shares up to Bt 200 million without reference to Board (unauthorised investment was one accusation).If funds under management underperformed that almost certainly reflects SET underperformance.There is some suggestion of trading on own account but accusations are very vague and unsubstantiated.My guess -and it's just that -is that GPF may have been too ambitious even reckless in investing in high risk instruments as opposed to safe government and corporate fixed interest securities given its responsibilities to government retirees.Now that would be a dismissable offence but it's incompetence not corruption.

[Old Man River]

Thailand’s Government Pension Fund (GPF) Secretary-General Visit Tantisunthorn on Tuesday revealed he had given his letter of resignation to the chairman of the board of directors to show regret and to take responsibility for any damage incurred by the agency.

It says alleged. That doesn't mean guilty.

True, but why would he wish "to show regret & take responsibility for any damage incurred by the agency", if he didn't believe himself to be guilty ?

It has been awhile since I talked to him and I certainly am not going to call him now. Hence, I don't know anymore than you do. However, for me, I prefer to wait and see what ultimately happens rather than jumping to conclusions.

[orchidlady]

Thailand’s Government Pension Fund (GPF) Secretary-General Visit Tantisunthorn on Tuesday revealed he had given his letter of resignation to the chairman of the board of directors to show regret and to take responsibility for any damage incurred by the agency.

It says alleged. That doesn't mean guilty.

True, but why would he wish "to show regret & take responsibility for any damage incurred by the agency", if he didn't believe himself to be guilty ?

It has been awhile since I talked to him and I certainly am not going to call him now. Hence, I don't know anymore than you do. However, for me, I prefer to wait and see what ultimately happens rather than jumping to conclusions.

It sounds like he was doing insider trading. it said he bought stocks for his own account similar to stocks for the pension fund. That is insider trading.

[animatic]

Mr. Visit was also alleged by the Committee on Prevention and Suppression of Corruption in Public Sector for a purchase and sale of stocks in his private investment portfolio a few days prior to investment by the Fund in the stock market.

Among other concerns, Mr. Visit is alleged by the Committee on Prevention and Suppression of Corruption in Public Sector to have bought and sold stocks in his private portfolio related to investments by the fund in the stock market.

Good to see someone named-and-shamed, for doing something wrong, and also good to see him resign rather than moved-sideways to an inactive-post. Let's hope this starts a trend ... but not hold our breath !

It says alleged. That doesn't mean guilty.

They don't tend to allege in public unless

in reality is is MUCH worse than what is allegeded

and the exit deal is struck.

Edited June 5, 2009 by animatic

[Arkady]

Visit seems to have angered some influential senior bureaucrats because of the large losses in the government pension fund last year. I suspect these losses were mainly caused by the downturn in the equity markets but there may well have been some incompetence and malfeasance involved too. Insider trading allegations now seem to have come out of the investigation which supports the latter. Actually the government pension fund is an enormous player in the Thai stock market and has been managed in a rather opaque manner. Whether the opacity was intentional or not, it provided huge opportunities for Visit and his top lieutenants to make fortunes from insider trading and, more particularly, from front running the fund's orders. I can't say whether they did this or not but there are few senior Thais who could resist such a temptation. MFC Asset Management was in a similar position in the 80s and early 90s when it was the sole fund management company in Thailand. It was well known to be rotten to the core but it took the crisis of 1997-98 for the stench to become so bad that it had to be cleaned up and the top tier of management was surgically removed without, of course, anything so vulgar as criminal prosecutions. Maybe the GFP is following the same well worn path. It is interesting the toothless SEC has not got involved.

[Chunkton]

If this is US or UK? He goes to jail.

You mean like all those British MPs involved in expenses rorts. I think you will find they simply don't contest their seats at the next election. Still get all the special payment goodies coming though. No criminal action against them.

Or the US Wall Street banks involved in fraud and protected by the government bailouts? No criminal action against them.

Don't start holding up the US and UK as lawful, different rules apply to those in power or with connections. Now, hang on, that sounds like Thailand doesn't it? Well guess what, everywhere is the same isn't it.

[jfchandler]

Not quite true for the U.S.

Of course, many questionable banking/stock market execs have run free and clear with their windfalls...

But, at least a few are being prosecuted. Angelo Mozillo from the former Countrywide Bank is one of them. Huckster Bernard Madoff is another. Sir Allen Stanford is another.... Not nearly enough....but probably more higher level guys than ever occurs here in LOS.

BTW, since none of the above posted articles tell it, WHAT exactly happened to the Thai GPF to bring down all this stuff of late??? I gather they incurred losses, but EVERYONE has incurred losses.... Was their toll above and beyond for some reason???

[Old Man River]

Not quite true for the U.S.

Of course, many questionable banking/stock market execs have run free and clear with their windfalls...

But, at least a few are being prosecuted. Angelo Mozillo from the former Countrywide Bank is one of them. Huckster Bernard Madoff is another. Sir Allen Stanford is another.... Not nearly enough....but probably more higher level guys than ever occurs here in LOS.

BTW, since none of the above posted articles tell it, WHAT exactly happened to the Thai GPF to bring down all this stuff of late??? I gather they incurred losses, but EVERYONE has incurred losses.... Was their toll above and beyond for some reason???

I think this one was more political than anything else, but anyway, he has been cleared of these charges.