GSB president resigns after mass withdrawals

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GOVERNMENT SAVINGS BANK
GSB president resigns after mass withdrawals
Suphannee Pootpisut
The Nation


Worawit Chailimpamontri

BANGKOK: -- The president of state-run Government Savings Bank (GSB) has tendered his resignation after facing pressure on his decision to lend Bt20 billion to the government's troubled rice-pledging scheme, which led to a rash of withdrawals by customers.

Woravit Chailimpamontri's resignation will be effective 30 days from yesterday.

Meanwhile, a group of businesspeople declared their support for the GSB, and some urged against using farmers as political pawns as they suffer from late payments under the rice-subsidy programme.

GSB's board of directors yesterday cancelled a loan of Bt20 billion to the Bank for Agriculture and Agricultural Cooperatives (BAAC) and agreed to pull back a previous loan of Bt5 billion. The board will ask the BAAC to respond to a report that it would use the loan to pay farmers who are in arrears under the rice-subsidy programme.

Worawit said after the meeting that he had handed his resignation to the board to show his responsibility on this matter.

"I took a few days to decide to resign from the post as a result of pressure," he said.

He said there was a level of distrust on whether he was a political tool of the government, running the bank to serve the government's policy. Still, he insisted that lending to the BAAC did not violate any law.

The resignation was to show he was taking responsibility for the massive withdrawals the bank had endured as well as to restore confidence among clients and employees, he said.

Woravit took the helm in late 2012, succeeding Lersak Julates. There were three candidates for the post. Before joining the GSB, he was the president of Government Housing Bank.

Hundreds of GSB employees wearing black gathered yesterday morning at the bank's headquarters to demand Worawit's resignation. GSB employees also urged the bank to suspend its lending to the rice project, which has been struggling to pay farmers since the government took on a caretaker role.

Meanwhile, a group of 10 businesspeople were seen yesterday at GSB headquarters, in a gesture to show their unabated confidence in the bank, which saw Bt30 billion withdrawn by customers on Monday.

Joining them were executives of state enterprises and Salinee Wangtal, an assistant governor of the Bank of Thailand who is chairwoman of the Deposit Protection Agency.

Wiwat Theekhakeereekul, chairman of Car Mart, claimed that this group of businesspeople deposited about Bt1 billion with the GSB yesterday to show their opposition to financial institutions and farmers being used as political pawns.

"We don't want a panic-driven bank run. Farmers are underprivileged and deserve sympathy, just as financial institutions do. Everything can cause a chain reaction, and this could affect the business sector. I admit that I'm concerned with the current political situation," he said.

Sumet Damrongchaitham, president of Dhanarak Asset Development, a venture of the Finance Ministry, opened a new deposit account at GSB. He said this should indicate that confidence in GSB remained as a major mechanism to help farmers.

He noted that any wrongdoers in the rice-pledging scheme should be punished, but for fairness farmers should be spared from this chaos.

Salinee bought additional savings tickets worth about Bt30,000 to express her confidence in the state-owned bank. She noted that GSB remained a strong institution, without signs of a shortage of liquidity.

Asked whether withdrawals from GSB would pose a risk to the system, she said the situation was normal but would be closely monitored.

Caretaker Prime Minister Yingluck Shinawatra blamed the delay in making payments under the rice-pledging scheme on anti-government demonstrations.

"I'm very upset, and apologise to all the farmers who are suffering from the delays. The farmers are now in the middle of a political game being played by the protest leaders, who are refusing to follow the democratic and legal path. They should feel sympathy for the farmers who work hard for the sake of the country," she said.

Deputy Prime Minister Kittiratt Na-Ranong, who is also the caretaker finance minister, has reaffirmed that the government has made all-out efforts to seek funds to pay the farmers in the rice-pledging scheme.

He agreed with Yingluck that the delay in the payments stemmed from the attempts to topple the government. He made a remark after meeting with some farmers who supported the pledging scheme.

Kittiratt added that he had considered that the farmers who had experienced late payments should be compensated with interest on the arrears.

He said he wanted to see the state-run banks supporting the government by providing credit lines to the farmers.

Meanwhile, thousands of farmers are scheduled to gather at the Commerce Ministry today at 8am to press for Yingluck's early resignation. After that, they plan to split up to march to other government agencies and block access to them.

Surasak Riangkrul, director-general of the Foreign Trade Department, said the Commerce Ministry was able to sell about 600,000 tonnes of rice to 10 traders at a recent auction, which should generate an additional Bt20 billion. The money should be forwarded to the BAAC in short order for payment to farmers.

Caretaker Deputy Commerce Minister Yanyong Phuangrach said the ministry would meet today with farmer representatives and millers to discuss the overdue-payment problem and how to resolve it quickly.

A rice-miller source said millers planned to set up a fund to help farmers by using their pledging documents as a guarantee. About 100 millers could jointly set up the fund, with initial capital of about Bt200 million.


-- The Nation 2014-02-19

[GeorgeO]

There seems to be at least one person involved in all of this who still has some honour, but I think it may be too late to save the bank.

I wonder how many of the stories relating to huge deposits relate to "real" depositors, or whether they are "fake" as they suggested the farmers were...?!

[Red Snake]

I hope this has open the eyes of the farmers to who is their friend. Suthep is two face, he has his people withdraw the money from the bank in the south while he often a mere 25 million baht for legal fees for farmers. I wonder how much money was pockets from his march on Silom the other day.

[Robby nz]

Symbolic resignation only as Worawit is still there, he is said to be acting president for 30 days (according to law ?)

Any bets he will be reinstated after 30 days ?

Only took 2 posts before Suthep got slammed this time, the red loonies are improving, the boss will be pleased.

Edited February 18, 2014 by Robby nz

[PatOngo]

I hope this has open the eyes of the farmers to who is their friend. Suthep is two face, he has his people withdraw the money from the bank in the south while he often a mere 25 million baht for legal fees for farmers. I wonder how much money was pockets from his march on Silom the other day.

The money from the march on Silom fades into insignificence compared to the money squandered by the ruling party in the rice scam,they are lower than your belly,Red Snake.

[jaltsc]

"The president of state-run Government Savings Bank (GSB) has tendered his resignation after facing pressure on his decision to lend Bt20 billion to the government's troubled rice-pledging scheme, which led to a rash of withdrawals by customers."

The new model for running a bank..."Save face. Lose money." Somehow I don't think the rest for the financial world will embrace it

[hansgruber]

I wonder what percentage rates were offered in the loan that tax payers will ultimately repay?

That should be looked at also.

[soundman]

What? Cancelled the B20 Billion loan?

What about all the money certain media made a huge song and dance about a few days ago when they reported the government making good to the farmers as payment for the rice debts?

So where did the money withdrawn by the farmers come from? Or did it actually happen?

Someone is telling rather large porky pies.

[Ricardo]

An honourable banker ... good for him ... someone should put up a statue !

[meatboy]

yesterday the wife was at our branch of tgsb and she says there were a long queue withdrawing their cash.dont these people realize they will loose out.

one guess who is responsible yes if I cant have my ill gotten gains back I will <deleted>> up Thailand big time.

[carbine1125]

I hope this has open the eyes of the farmers to who is their friend. Suthep is two face, he has his people withdraw the money from the bank in the south while he often a mere 25 million baht for legal fees for farmers. I wonder how much money was pockets from his march on Silom the other day.

Can't accuse you of being two faced or you wouldnt be wearing the one you have!

[LindsayBKK]

I hope this has open the eyes of the farmers to who is their friend. Suthep is two face, he has his people withdraw the money from the bank in the south while he often a mere 25 million baht for legal fees for farmers. I wonder how much money was pockets from his march on Silom the other day.

Can't accuse you of being two faced or you wouldn't be wearing the one you have!

Nor can we accuse you of being ignorant in Facts & Truth. Edited February 19, 2014 by LindsayBKK

[aussieinthailand]

Symbolic resignation only as Worawit is still there, he is said to be acting president for 30 days (according to law ?)

Any bets he will be reinstated after 30 days ?

Only took 2 posts before Suthep got slammed this time, the red loonies are improving, the boss will be pleased.

"the red loonies" ( loony's), So Robby nz, you think the "peaceful protesters" that threw the bomb and blew the leg off a policeman is a loon? how about the one that shot and killed the policeman, is he a loon also?

There is now way that some of these protesters are peaceful mate and who is leading them, The biggest loon of all using farmers as political pawns, first threatening banks if they give loans to the gov for farmers payments then after advice back-flipped and said banks should give loans,

[sam sen]

Symbolic resignation only as Worawit is still there, he is said to be acting president for 30 days (according to law ?)

Any bets he will be reinstated after 30 days ?

Only took 2 posts before Suthep got slammed this time, the red loonies are improving, the boss will be pleased.

30 days is the standard legal notice period here.

yea, i could see a re-instatement... but if its a genuine resignation then hats off to him.

[noikrit]

Woudn't surprise me if he gets a new posting in Dubai .....

[tomyummer]

The Commerce Ministry was able to sell 600,000 tones of rice for Bt20 billion? Did I do my math wrong? That's 33,333 thb per ton? Market price is roughly half that or less?! Please explain!!

[simple1]

I wonder what percentage rates were offered in the loan that tax payers will ultimately repay?

That should be looked at also.

Interbank loan @ 2 percent p.a.

[anon467367354]

Symbolic resignation only as Worawit is still there, he is said to be acting president for 30 days (according to law ?)

Any bets he will be reinstated after 30 days ?

Only took 2 posts before Suthep got slammed this time, the red loonies are improving, the boss will be pleased.

"the red loonies" ( loony's), So Robby nz, you think the "peaceful protesters" that threw the bomb and blew the leg off a policeman is a loon? how about the one that shot and killed the policeman, is he a loon also?

There is now way that some of these protesters are peaceful mate and who is leading them, The biggest loon of all using farmers as political pawns, first threatening banks if they give loans to the gov for farmers payments then after advice back-flipped and said banks should give loans,

The protestors did not throw a grenade, it was reported by a police officer that the police threw it. It was later reported that the police had an accident and the grenade went off.

Quit spreading lies! The question should be why did or do the police have grenades? Aren't those weapons of war?

[DerringDo]

I did the same maths Tom.

[Bocking]

''Surasak Riangkrul, director-general of the Foreign Trade Department, said the Commerce Ministry was able to sell about 600,000 tonnes of rice to 10 traders at a recent auction, which should generate an additional Bt20 billion. The money should be forwarded to the BAAC in short order for payment to farmers''.

That's B33,333 per Ton .... is any figure in this Scheme real?

[billsmart]

I hope this has open the eyes of the farmers to who is their friend. Suthep is two face, he has his people withdraw the money from the bank in the south while he often a mere 25 million baht for legal fees for farmers. I wonder how much money was pockets from his march on Silom the other day.

Can't accuse you of being two faced or you wouldnt be wearing the one you have!

Suthep isn't two-faced. He has only one face, and that face if the face of the Bangkok-centered, Thai elite who are so enraged that they've lost control of their country to simple, country-folk from the north through the vote they are now willing to bring down the popularly-elected government my any means possible. I assume Suthep will just continue to thwart all efforts of the caretaker government to conduct state business and escalate the violence in the protests which is aimed to provoke the government into taking police action to restore law and order until the violence escalates sufficiently to justify another military coup.

These people know they can't regain control via the ballot box so will resort to any means possible.

Unfortunately I see a long term of unrest for Thailand...

[gemini81]

Symbolic resignation only as Worawit is still there, he is said to be acting president for 30 days (according to law ?)

Any bets he will be reinstated after 30 days ?

Only took 2 posts before Suthep got slammed this time, the red loonies are improving, the boss will be pleased.

"the red loonies" ( loony's), So Robby nz, you think the "peaceful protesters" that threw the bomb and blew the leg off a policeman is a loon? how about the one that shot and killed the policeman, is he a loon also?

There is now way that some of these protesters are peaceful mate and who is leading them, The biggest loon of all using farmers as political pawns, first threatening banks if they give loans to the gov for farmers payments then after advice back-flipped and said banks should give loans,

daft, one sided, new to Thailand? cheering PTP indirectly? You sound like you just read a few headlines in a newspaper.

None of this would have ever occurred had the graft nor the rice scheme itself ever been put into place. Blaming discontent general public in bangkok as well as farmers shows you're not thinking it through. Go back to the root of the financial problems and discontent. If you pay tax here, you are thus among the discontent with ptp politicians lining their pockets.

Edited February 19, 2014 by gemini81

[GentlemanJim]

Worawit said after the meeting that he had handed his resignation to the board to show his responsibility on this matter.

"I took a few days to decide to resign from the post as a result of pressure," he said.

There is hope for Thailand yet. We all make mistakes, few people here have the moral courage to accept responsibility. Pass Go, collect 200 street cred points.

[IamNoone88]

Interesting: (i) .......... unabated confidence in the bank, which saw Bt30 billion withdrawn by customers on Monday. (ii) Salinee bought additional savings tickets worth about Bt30,000 to express her confidence in the state-owned bank .......

Now, that is clearly showing her confidence in the bank!!!!

Ironic that the very thing that hep the Gov't get into power may be their undoing.

[tomyummer]

I did the same maths Tom.

Whew. For a second there I thought my government issued tablet was malfunctioning.

[h90]

Symbolic resignation only as Worawit is still there, he is said to be acting president for 30 days (according to law ?)

Any bets he will be reinstated after 30 days ?

Only took 2 posts before Suthep got slammed this time, the red loonies are improving, the boss will be pleased.

See it the same. he hopes PTP is controlling everything again in one month and the resignation paper will be just put in the junk.

[Martstar]

I hope this has open the eyes of the farmers to who is their friend. Suthep is two face, he has his people withdraw the money from the bank in the south while he often a mere 25 million baht for legal fees for farmers. I wonder how much money was pockets from his march on Silom the other day.

Can't accuse you of being two faced or you wouldnt be wearing the one you have!

Suthep isn't two-faced. He has only one face, and that face if the face of the Bangkok-centered, Thai elite who are so enraged that they've lost control of their country to simple, country-folk from the north through the vote they are now willing to bring down the popularly-elected government my any means possible. I assume Suthep will just continue to thwart all efforts of the caretaker government to conduct state business and escalate the violence in the protests which is aimed to provoke the government into taking police action to restore law and order until the violence escalates sufficiently to justify another military coup.

These people know they can't regain control via the ballot box so will resort to any means possible.

Unfortunately I see a long term of unrest for Thailand...

As it turns out... the simple folk are finding out quick they were massively duped. Handing out money to secure votes on election day is not democracy... paying the poor to go and protest is not democratic either... and neither is sending a country down the toilet cause your messed up muppet running from your criminal history...

Tablets, rice scam, flood scam... never before has there been such a massive and unabated taking of the peoples money... these are the facts, those who live on some other planet might have a different view.... as shown here.

[napawan28]

Bt70 billion was withdraw within 2 days. Good luck GSB.

Edited February 19, 2014 by napawan28

[HooHaa]

"The president of state-run Government Savings Bank (GSB) has tendered his resignation after facing pressure on his decision to lend Bt20 billion to the government's troubled rice-pledging scheme, which led to a rash of withdrawals by customers."

The new model for running a bank..."Save face. Lose money." Somehow I don't think the rest for the financial world will embrace it

oh really, been watching what has been happening in the US over the last 3-4 years?

[PaulHamon]

Government did this to themselves, let's be serious, if they cannot afford to pay for scheme... they didn't do the maths when making the promises.

http://www.thaivisa.com/forum/topic/705405-rice-pledging-scheme-a-death-trap-for-govt-and-farmers/

When has government purchasing of commodities over market value worked anywhere in the world?