Reasons of change

[webfact]

GOOD GOVERNANCE

Impact on Vijit's actions remains to be seen

By Siriporn Chanjindamanee

The Nation

Securities and Exchange Commission chairman Vijit Supinit yesterday stepped down after his role in the alleged hostiletakeover attempt of Thoresen Thai Agencies sparked widespread criticism over governance and ethics.

His term was due to expire next month.

Charamporn Jotikasthira, president of the Stock Exchange of Thailand, admitted that the TTA affair had attracted huge attention from foreign media such as The Wall Street Journal, but said it remained to be seen how foreign investors would react to it.

"A way to gauge foreign stock-investor confidence is through the foreign media," he said.

This kind of case is rare in Thailand, unlike share manipulation, which could happen in any market, he said.

"This serves as a reminder to all."

The SEC needs to ensure that this will never happen again, especially since it will keep a regulatory role even after the bourse's demutualisation, Charamporn said.

Finance Minister Korn Chatikavanij expressed surprise that the SEC chairman could behave in such a way that he tarnished both his own reputation and that of his organisation.

It would take some time to fix the law on the qualifications of the SEC chairman, but the conscience of the chosen person was more important, he said.

Korn said he recently approved the appointment of Vijit's replacement, whose conduct was transparent.

"Yet conscience is the key. Those voting for him [Vijit] never thought that their choice would betray the public's trust."

Vijit's resignation letter was tendered to the SEC's board of directors, which convened yesterday and ordered the audit committee to consider two issues.

One was the need to amend the SEC's rules for good governance and ethics and the other was the need to bar any SEC director from holding positions in listed companies. The committee will shortly submit its report to the SEC board.

Bee Taechaubol, an investor named as the leader of a minority group of TTA shareholders, talked to the press about the reported attempt to revamp the bulk shipper's board of directors and management team.

He said he was just a middleman seeking justice for minor shareholders, while Vijit had just tried to protect minor shareholders. Vijit had declined a shareholder's proposal to become TTA's new chairman, he said.

Before the SEC board meeting, more than 300 SEC employees wore black to push for Vijit's ousting, as they believed his involvement in the TTA affair had tainted the watchdog's neutral image and undermined investor confidence.

Notably, last year, Thailand moved up to fourth place in CG Watch 2010, Asia's comprehensive corporate-governance assessment, after earning recognition as the country with the highest score improvement, especially in the areas of political and regulatory environment.

Chalee Chantanayingyong, deputy secretary-general of the SEC, said the employees' reaction reflected their love of the organisation. This demanded that all in high positions conduct themselves in a careful manner and out of love for the SEC.

-- The Nation 2011-06-03

[khaowong1]

I'm surprised he got caught. He must have made someone angry.

[Arkady]

Not sure what his actual involvement was but he hasn't attempted to deny anything, as he did with his past scandals. I guess he had agreed to be chairman after a management coup at TTA after his term at SEC ended, which would have been next month. He has a less than distinguished track record but was made chairman of the SET by Thaksin and then chairman the SEC by Somchai for reasons better known to themselves. Key achievements were using taxpayers' funds to bail out Bangkok Bank of Commerce which was obviously already a basket case after it been systematically plundered by his protege, Krirkiatt, and getting the NIA to organize illegal wiretaps of his bitter rival Ekamol who was secretary general of the SEC at the time. No big surprise that he is finishing his public "service" career caught with his pants down in the company of sleezy characters in the business world.

[Arkady]

I'm surprised he got caught. He must have made someone angry.

He has made himself a lot of enemies during his murky career in public office. Many SEC staffers felt it was slap in the face that a man with a tainted reputation was made their chairman by the Somchai (Thaksin's brother-in-law) goverment. In the end some one apparently gave the SEC a recording of Vijit in conference with the TTA takeover group. Hence none of the usual denials were issued.