State Firms On Lookout For New Chiefs: Thailand

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ANALYSIS

State firms on lookout for new chiefs

Business Desk

The Nation

Sorachak

Will political intervention determine who takes reins at THAI, MCOT, TOT, four banks?

BANGKOK: -- The impending appointment of new chiefs for seven state enterprises just as the Pheu Thai government completes its first year in office raises questions whether political intervention will spike.

In September and October, seven state enterprises will get new chiefs - Thai Airways International (THAI), Krung Thai Bank, MCOT, TOT, Government Savings Bank, Islamic Bank of Thailand and Small and Medium Enterprise Development Bank of Thailand (SME Bank).

The hottest development is at THAI, the national carrier, which is yet to sign a deal to acquire 38 more aircraft worth hundreds of billions of baht. After the highly publicised termination of the employment contract of Piyasvasti Amranand, the airline is now in the process of selecting its new president. Without any qualified contestant, Sorachak Kasem-suwan is tipped to take the helm.

Sorachak is a close aide of Surakiart Sathirathai, a former foreign minister who is close to Pheu Thai's chief Thaksin Shinawatra. Being one of the favourite students at Chulalongkorn University, Sorachak has been working closely with Surakiart. When Surakiart oversaw the ministry, he was a vice minister. When Surakiart was chairman of the ministry's Saranrom Institute of Foreign Affairs, he was the vice chairman.

According to Areepong Bhoocha-oom, the finance permanent secretary and chairman of THAI's selection committee, when applications closed on August 6, there were five aspirants, including ML Hathaichanok Kridakorn, who is now general manager of Accor Asia Pacific Corporation, and Krissanet Sriprasert, commercial counsellor at the Qatari Embassy in Thailand. One of the other two asked for remuneration of Bt150 million while the others did not have a bachelor's degree.

What is most surprising to all is that no insider applied for the job and that THAI chairman Ampon Kittiampon said that there is no need for extension of the application period, even though Sorachak is the only qualified candidate. It would not be a surprise if Sorachak was named the president shortly after the September 10 interview.

Also hot is the selection of the new president of Krung Thai Bank, the second-largest bank by assets and a major tool in financing government-supported projects, including the rice-pledging scheme and infrastructure projects. As Apisak Tantivorawong's term will end in November, the list of potential candidates are Vorapak Tanyawong, chairman and CEO of Finansa Securities; Soros Sakornvisava, former president of SME Bank; and Chaipatr Srivisarvacha, managing director of KT Zmico Securities.

One candidate who surprised stock analysts is Prachuab Tantinon, former managing director of the Thailand Tobacco Monopoly and former president of TT&T, who has no background in finance.

It is unclear whether Vorapak and Chaipatr will get any political support, but they will get backing from financial circles. Chaipatr has more than 15 years of experience in the banking industry, while Vorapak has extensive experience in capital markets and investment banking. Before taking the job at Finansa Securities, Vorapak was a senior executive vice president at Siam Commercial Bank and held a senior management position with JPMorgan Chase and Deutsche Bank. He was also Bank of America's manager for Thailand.

Apisak has been hailed as a successful president, delivering a balance of government control and market demand. His replacement will also have to do so, as support for government programmes explains why KTB's non-performing loans at 4 per cent are above the industry's average of 3 per cent.

Emerging as candidates for president of Islamic Bank of Thailand are Rak Vorrakitpokatorn, senior executive vice president of the bank; Ratsuwan Pidpayon, senior executive vice president of the bank; and Thanin Angsuwarangsi, an outsider and a director of Airports of Thailand. A source in the banking industry said Thanin has great connections with some leaders in the Pheu Thai Party, aside from his experience as an executive at Capital Nomura Securities.

Signs of political intervention would show up if the bank's board decides to amend the selection criteria to welcome a president who formerly ran an enterprise with assets of under Bt10 billion.

At MCOT, the board of directors yesterday named Anek Permvongseni as its new president, who will start his four-year term on October 1. Anek, appointed secretary-general of the Education Council at the Education Ministry late last year, will resign from the post on September 30. But he will retain the position of chairman of Thailand Post, another state enterprise.

Acting president Premkamon Tinnakorn na Ayutthaya, who serves as chairman of the selection committee, said Anek won the highest marks from the interview and vision presentation, against the other five candidates. Premkamon said Anek was an expert in the broadcasting industry with knowledge to support the conversion of analog broadcasting to the digital system.

The selection is under way at GSB after Lersak Julates resigned in July. Candidates include Worawit Chailimpamontri, president of the Government Housing Bank, and Tachapol Kanchanakul, deputy director of the GSB and acting GSB director. The stakes are high as the GSB, like the SME Bank, are key tools to finance the government's populist policies.

Political intervention is welcome if it is not meant to exploit the state enterprises for immediate gain, which will blunt their long-term competitiveness.

-- The Nation 2012-09-07

[theblether]

It's naive to suggest there wouldn't be political intervention.......the clue is in the phrase State enterprise.

What matters most is that the appointee's do a good job once delivered to them.......Thai Airways seemed to have been on the right track in the last couple of years, the customers will soon tell if the product delivered is the product they want.

..............and before we Westerners start ridiculing this selection system, our laissez faire attitude to big business appointments brought us the catastrophic banking collapse. We're not as smart as we think we are.

[Ricardo]

Too many indians, not enough chiefs, perhaps ?

[jerrysteve]

The pricies of air travel with respect to Thai Airways has always been less competitive compared to other well know International carriers..

Usually over priced by several 1000 Baht. Thats been my experience anyway.

Korean Air, China Air both of which have excellent service and whose prices is far better...usually several 1000 Baht less.

Thai Airways will have to do a far better job with respect to pricing and service to ever get my business.

[theblether]

The pricies of air travel with respect to Thai Airways has always been less competitive compared to other well know International carriers..

Usually over priced by several 1000 Baht. Thats been my experience anyway.

Korean Air, China Air both of which have excellent service and whose prices is far better...usually several 1000 Baht less.

Thai Airways will have to do a far better job with respect to pricing and service to ever get my business.

That's true.....they do have a long way to go, but if you researched the level of endemic abuse of Thai airways by officials of the company and by politicos etc you will be staggered at how it was treated as a personal taxi service by many of them. To my recollection, and others here will correct me, some categories were entitled to up to 8 free flights a year, it got to the point where the business cabin's were over-run by politicos and the like taking jolly holiday flights free of charge while fee paying passengers were getting bumped. I think I noticed a story where people were taking 30 plus flights a year......again others can confirm.

It's came a long way in the last couple of years.........and it's the politicians who have most to answer for in regards to the previous abuse......it's up to them to ensure that progress continues.

[chainarong]

Could be one available out of America come December. .

[chainarong]

The pricies of air travel with respect to Thai Airways has always been less competitive compared to other well know International carriers..

Usually over priced by several 1000 Baht. Thats been my experience anyway.

Korean Air, China Air both of which have excellent service and whose prices is far better...usually several 1000 Baht less.

Thai Airways will have to do a far better job with respect to pricing and service to ever get my business.

I don't know about those other carriers ,Thai Int is the only way to go, off the west coast of Australia.

[noitom]

"On the lookout for new chiefs" is a euphemism for let's find a better bag man who will 'redistribute" the skim.

[hellodolly]

Could be one available out of America come December. .

Ya and he is a expert at avoiding income tax by shipping jobs out of country and off shore banking.