Saxena A Political Bargaining Chip

[webfact]

SPECIAL REPORT

Saxena a political bargaining chip

By Thanong Khanthong

Published on November 2, 2009

Saxena a political bargaining chip

In the first part of a series, Thanong Khanthong reports that initial pre-bargaining talks could be underway between the Democrat-controlled police and Rakesh Saxena as the leading coalition party tries to zero in on the big fish.

After a good night's sleep in the hospital within the Bangkok Remand Prison, Rakesh Saxena woke up yesterday morning feeling fresh and in higher spirits than on the first day when he was escorted back from Vancouver. Everything became surreal to him.

The long travel took its toll on his health, especially as he has been confined to a wheelchair after suffering a stroke in March this year. Part of the left side of his body is paralysed. He admitted that he was stressed because he could not sleep. But he was beginning to be able to adjust to the new environment, according to Sophon Thitithampruek, acting commander of the Bangkok Remand Prison.

The previous evening, he had a bowl of Mama instant noodle. Yesterday morning, he ate rice soup and milk, just like other inmates. Saxena was confined to a wing of the Bangkok Remand Prison Hospital, where prisoners with contagious diseases are kept. There are five empty rooms in this hospital area. The Bangkok weather is still humid and hot. Saxena was happy enough to have an electric fan to cool him up. The prison conditions in Bangkok are far from the comfort of his home in his US$1.5 million (Bt50 million) residence in Vancouver, where the Canadian authorities had kept him under a house arrest pending an extradition ruling. Last Thursday, Saxena lost the case after a 13-year legal battle.

Now that Saxena is back in Bangkok and is going to facing charges of allegedly violating securities law and embezzling billions of baht from the defunct Bangkok Bank of Commerce, what will happen next? On TV he looked like a lost soul, who could not find his way around the City of Angels. But he still managed to keep his composure. Never underestimate the power of his brain and his political leverage as he still commands a big pot of wealth that can move the financial markets. After all, Saxena is a VIP inmate, who enjoys first-class treatment from the Thai authorities.

Saxena has now become a political bargaining chip. The Democrats are enjoying an upper hand. Prime Minister Abhisit Vejjajiva has already made the overture by issuing a threat of his intention to catch other big fish in the net. He declared that the justice system would pursue any additional suspects found to have links with the collapse of the BBC, which caused some Bt200 billion in damage to the tax-payers' money.

Many former members of the Group of 16, such as Newin Chidchob, Suchart Tancharoen Varathep Ratanakorn, Sora-ath Klinpathum, would find it difficult to sleep peacefully from now on. Banharn Silapa-archa, then prime minister, Surakiart Sathirathai, then finance minister, and Vijit Supinit, then governor of the Bank of Thailand, could also be held accountable for the collapse of the Bangkok Bank of Commerce.

The Democrats now have rushed to take control over the police. The police are divided, but the faction that leans towards the Democrats has been assigned to handle the Saxena case. The police interrogated Saxena at Suvarnabhumi Airport and at the Crime Suppression Centre, where he spent the first night in a haunted cell. Many, who used to be locked up in that haunted cell at the Police Crime Suppression Centre, have come out to tell stories of a not-so-friendly ghost. They were haunted by the appearance of a man wearing a red shirt, who hung himself to death within that cell some time ago. Luckily for Saxena, the ghost did not pester him this time.

Some initial pre-bargaining talks must have already taken place between the Democrat-controlled police and Saxena. If he were to cooperate with the authorities by naming the other suspects in the Bangkok Bank of Commerce scandal, he could face a lighter sentence eventually. Saxena could be prosecuted by up to several dozens of other cases related to BBC with damages worth Bt10 billion. Before leaving Vancouver, Saxena also issued a threat by saying that he would reveal all the names involved if not treated fairly.

Krirk-kiat Jalichandra, the former president of the Bangkok Bank of Commerce, has also been keeping his silence. In one of the cases related to BBC, he has been sentenced to 30 years in prison. He is fighting an appeal in the Supreme Court. Krirk-kiat has all the secrets in his file. He was the one who signed all of the bank documents that gave out the sour loans. Saxena was the financial adviser of the bank then but he did not sign any documents. But the money flowed through the dummy companies both created as a camouflage of high finance.

Both Saxena and Krirkkiat can only protect themselves by telling it all. But then their lives could be in danger if they do so.

Next: Who ordered the closure of the Bangkok Bank of Commerce to cover-up the loan scandal?

-- The Nation 2009/11/02

[BanTamo]

How's Khun Pin?

[tig28]

Saxena has now become a political bargaining chip. The Democrats are enjoying an upper hand. Prime Minister Abhisit Vejjajiva has already made the overture by issuing a threat of his intention to catch other big fish in the net. He declared that the justice system would pursue any additional suspects found to have links with the collapse of the BBC

It is remotely possible that this fortuitous situation might just become the key to solving many of the current Governments problems. Noting the 30 year sentence handed to the former president of the BBC --- certain individuals from both side of politics might be having some sleepless nights right now.

With Saxena apparently securely in the hands of Abhisit ---- he perhaps now has the perfect tool to reign in Newin and his friends whilst also bringing to heel certain fractious elements from within his own party.

It would be ironic if the BBC fiasco resulted in the stabilization of this Government ------ it would be a good result!

[Briggsy]

No real analysis in this article. Just all the recent press reports bundled together.

[Samuian]

watch the miracle unfolding.... lean back and enjoy!

one of the key figures of the asian financial crisis is back and will be of an incredible value,

what, who and how things happened and who has been involved....

..so who was the "man in the red shirt.." in that cell?

[Thailand]

This could turn out to be a wonderful political soap opera with flashbacks to all those that were involved in the BBC fiasco and forward to where they are now.

We will be able to watch the panic rising as the names of perps are slowly released by Saxena each time extracting a little more clemency from the powers that be.

Fun times ahead.

[LawnGnome]

Saxena has now become a political bargaining chip. The Democrats are enjoying an upper hand. Prime Minister Abhisit Vejjajiva has already made the overture by issuing a threat of his intention to catch other big fish in the net. He declared that the justice system would pursue any additional suspects found to have links with the collapse of the BBC

It is remotely possible that this fortuitous situation might just become the key to solving many of the current Governments problems. Noting the 30 year sentence handed to the former president of the BBC --- certain individuals from both side of politics might be having some sleepless nights right now.

With Saxena apparently securely in the hands of Abhisit ---- he perhaps now has the perfect tool to reign in Newin and his friends whilst also bringing to heel certain fractious elements from within his own party.

It would be ironic if the BBC fiasco resulted in the stabilization of this Government ------ it would be a good result!

It is working already. Very little fuss was kicked up last week, when they announced that the government is going to go back to a 2 airport policy and reopen Don Muang as an international airport. The "expand swampy" idea was a BJT party bullet point, but they appear to have backed down from that stance.

If the Democrats are given a little free reign to clean things up, things will be much better in the long run.

[Arkady]

Not sure what the precise nature of Saxena's info about the group of 16 is. It is well known who took the loans and Krirkkiat and Ekkachai have already been convicted without fingering any of the group of 16. Saxena would have to have hard evidence that can be used in court to be of value. Perhaps he has salted some away but then, as he wasn't an officer of the bank, he wouldn't have been party to any paperwork himself. What could be damning would be if he has kept details of the money trail of any of BBC's many sham investments and loans overseas, in which the group of 16 might have shared in addition to repaying their loans. The overseas money trail is the part of the criminal network that Saxena was most closely involved with and it is possible that he has such evidence but revealing it might expose him to further charges in Thailand and abroad.

[Thai at Heart]

Not sure what the precise nature of Saxena's info about the group of 16 is. It is well known who took the loans and Krirkkiat and Ekkachai have already been convicted without fingering any of the group of 16. Saxena would have to have hard evidence that can be used in court to be of value. Perhaps he has salted some away but then, as he wasn't an officer of the bank, he wouldn't have been party to any paperwork himself. What could be damning would be if he has kept details of the money trail of any of BBC's many sham investments and loans overseas, in which the group of 16 might have shared in addition to repaying their loans. The overseas money trail is the part of the criminal network that Saxena was most closely involved with and it is possible that he has such evidence but revealing it might expose him to further charges in Thailand and abroad.

Kashoggi's name jumped up as one of the list of borrowers. If he really spills the beans he could cause quite a lot of problems for people outside Thailand too. The names might be of interest to authorities outside Thailand also, but it will also increase the amount of people who will want this guy silenced. This may go far beyond the collapse of a single bank in Thailand.

I know Wikepedia isn't the most reliable source, but the British newspapers also mentioned his name in conjunction with funding a coup in Sierra Leone through Sandline. It won't just be BJT looking at this case with more than a little trepidation.

http://en.wikipedia.org/wiki/Rakesh_Saxena

Whether he can prove it is important, but if he starts naming names publicly, a lot of investigative journalists might just start sharpening their pencils and do the job for him.

[webfact]

BBC SCANDAL

Don't let Saxena die

By Thanong Khanthong

The Nation

Published on November 3, 2009

Deliberate leak of bank documents triggered BBC and Thai economy's collapse but will financier spill the beans on dodgy deals in '96?

In his second part of the series on the Bangkok Bank of Commerce scandal, Thanong Khanthong asks who ordered the closure of the bank in 1996 that triggered off the 1997 financial crisis.

In his fight against being extradited from Canada over the past 13 years, Rakesh argued that if he were to be sent back to Bangkok, his life could be at risk. He also said prison condi?tions in Thailand were horrible - compared, of course, to his luxury home where he was stuck under house arrest in Vancouver.

Indeed Rakesh Saxena's life may be in danger. But Korbsak Sabhavasu, the deputy prime minister, wrote in his web blog that Rakesh could not die as that would throw the political mess out of control.

Saxena lost the dramatic extradition case when the Supreme Court of Canada rejected any further appeal and sent him back to Bangkok last Friday. It gave no reason for rejecting his appeal.

However, Saxena has a full list of the politicians involved in the Bangkok Bank of Commerce scandal in 1996. Before leaving Vancouver, he issued a threat that he would tell all. Krirkkiat Jalichandra, the former president of BBC, also kept all documents to him?self.

If Saxena were to strike a pre-trial bargain plea with the Abhisit government by impli?cating politicians benefiting from BBC, he could compro?mise his safety in spite of the authorities' full assurance to protect him.

Saxena is now detained under 24-hour surveillance in the Bangkok Remand Prison hospital. His food is carefully screened. The Abhisit govern?ment has a full obligation to provide full and fair justice within the law to Saxena because it has won the extradi?tion case. If the Saxena case is not handled with due process, chances are Thailand would have a difficult time winning extradition cases with other countries in the future.

Justice minister Phiraphand Salirathawiphak said yesterday he had instructed the director general of the Corrections Department and the head of the Bangkok Remand Prison to look after Saxena, whose health is fragile. Saxena, 57, suffered minor paralysis on his left side after a stroke in March.

"I would like to stress that Rakesh is not receiving any privileges more than other inmates," Phiraphand said. "Since he is sick, he needs to be looked after. We have the same standard practice as applied to other inmates. Now Rakesh is being held in the hospital with?in the compound of the prison, with a surrounding wall and tight security. He is not getting any privileges."

The Democrat government has a lot of incentives to provide top security and safety to Saxena, because he could pro?vide a link to politicians involved in the BBC scandal. Many of them are in the coali?tion government. Having Saxena in their control could help the Democrats hold their coalition partners in check. The Democrats want the coalition to survive till at least June 2010.

The politicians who benefit?ed from the BBC are now not having a good night's sleep. They definitely do not want Saxena to open his mouth.

The man at the centre of the BBC affair was Ekachai Athikomnantha, then the bank's senior executive vice president.

He was politically connect?ed to Sanan Kachornprasat, then the Democrat whip, and the PM Banharn Silapa-archa. Through Sanan, Saxena was introduced to the bank as Saxena impressed Sanan and others with his financial prowess. He practised swaps, futures and options well before Thai bankers knew about these strange financial products. Thai financial laws did not cover these products, which allowed Saxena to test the law to the limit.

Although he was centrally involved in BBC, the name Ekachai quickly disappeared from public view after the bank collapsed. Sanan also quickly stepped out of the shadow of BBC before the financial scan?dal broke out.

Banking authorities sent Krirkkiat Jalichandra to be BBC president and rescue the bank. BBC was in big trouble with huge bad loans on its books. But the task of salvaging the bank was formidable.

When Saxena came aboard as the bank's financial adviser, it was agreed the bank would shift away from normal prac?tice to high finance - to try to strike gold on the stock market. If the bank could make quick profits, it would be able to clear all its bad debts in a swoop.

Saxena's unique position as financial adviser within BBC would not have been possible without strong political backup.

BBC tested the first drama script with a takeover bid from Song Watcharasriroj, alias Sia Song. More takeovers and acro?batic financial dealings would follow while money from the bank was drained overseas, first through Lebuan and the British Virgins Island and other finan?cial centres of the globe. At the same time, the politicians, who tolerated this practice, got ben?efits from a series of question?able loans.

But this high finance ran against the tide. The stock mar?ket slumped by 40 per cent in 1996, as the real estate bubble was set to go bust. If the stock market was rally, Krirkkiat and Saxena would have emerged as heroes.

Vijit Supinit, then governor of the Bank of Thailand, kept the bank under his radar. He wanted a soft approach. The financial supervisors had asked him to take harsh action against BBC, but Vijit sat on it. He was doing everything to save BBC through a bail-out. He brought in the Financial Institutions and Development Fund and the Government Savings Bank to rescue BBC with a Bt60 billion capital increase. But it was too little.

Vijit had a good relationship with Krirkkiat. Vijit realised that closing down BBC would bring about a run of the finan?cial system. But the politicians were all over his head.

At the time, the economy was severely overheated. The cur?rent account deficit hit 8 per cent of gross domestic product. The inflow from the Bangkok International Banking Fund (BIBF) made things worse as cheap money from offshore moved here enjoy the interest rate differential.

Later on, many questioned the sustainability of the Bank of Thailand's fixed exchange rate regime.

The situation was aggravat?ed by political conflict between Banharn Silapa-archa, the PM, and the Group of 16, who were trying to consolidate their own power. They included Suchart Tancharoen, Newin Chidchob, Varathep Ratanakorn, Sora-at Klinpathum, Thanee Yisarn, Wittaya and Sonthaya Khunplume. Their political ambition was boundless.

Suchart Tancharoen was deputy Interior minister in con?trol of the police, while Newin Chidchob was deputy finance minister.

A minister belonging to the government leaked confiden?tial bank documents to Suthep Thaugsuban, in the Democrat Party, then in opposition. The ulterior motive was to destroy the Group of 16. If anything were to happen to the bank, BBC could be shut down.

Suthep took the bait. Based on the documents, he launched a no-confidence debate in Parliament on May 9, 1996, and exposed how the Group of 16 benefited from a loan scandal at the bank. The world was shocked. Many Thais rushed to withdraw deposits from the bank.

On an order from Prime Minister Banharn, Surakiart Sathirathai told Vijit to close the bank. The implications were: 1/ The Group of 16 would be destroyed; 2/ The bank scandal would be covered up; 3/ blame could be shifted to Krirkkiat, Saxena, Vijit, and Surakiart.

Taxpayers had to foot initial losses at BBC of Bt200 billion. But the implications were much larger. The scandal triggered a loss confidence in the Thai financial system and the baht exchange rate, which subse?quently turned into a loss of Bt4 trillion for Thailand as the economy collapsed like a house of cards in 1997-1998.

(Next: The BBC scandal in the eyes of the Nukul Commission Report of 1998)

-- The Nation 2009/11/03

[hammered]

Congratulations to TV on being a forum to cover this whole story. Certain Thai politics sites seem to have completley ignored this story. Funnily enough it is also the sites that failed to cover the Asia Institute Survey too. Anyway, good to see you can rely on the TV news forum to raise the stories others dont for discussion in English

[mdechgan]

I am very interested in this topic. However I couldn't find any more info on this topic. I have a few questions.

Who and what are the group of 16? What were their positions before currently? Where are they now?

1 Suchart Tancharoen

2 Newin Chidchob (I know this guy)

3 Chattawat Muttamara

4 Chuchart Harnsawat

5 Thanee Yisarn

6 Sonthaya Khunplome

7 Chamlong Krutkhunthod

8 Pairote Piumpongsarn

9 The Makhaisaw group, which was close to Suchart Tancharoen

10 Saudi billionaire Adnan Khashoggi

What was Baharn's position? He ordered the bank closed but is he guilty of something about the BBC? It seems he did the right thing in ordering it to be closed. If the canary starts to sing who is gonna get it? I don't see how the democrat party is going to be damaged. The government coalition might dissolve but I don't see anything linking to the democrat party. I think Suthep might be some form of "Elliot Ness" bringing down the bad boys. If the democrats want to pursue and the current Pheu Thai, Chalerm comes to mind. So the democrat and pheu thai have something in common? I think Chart Thai would have joined the fight also if still existed. Isn't the current PM kinda young for this case. Where was taksin in all of this? Chalerm, Snoh, Chavalit, he has to be somewhere in this. Does he have anything to do with Rakesh?