Backlash over Klongchan fraud case

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Backlash over Klongchan fraud case
Jeerapong Prasertponkrung,
Anek Krajaem
The Nation

Credit unions losing money; coops upset over media reports

BANGKOK: -- A NETWORK of credit union cooperatives called on Prime Minister General Prayut Chan-o-cha yesterday to help stop the media from shaking public confidence in their cooperative system.

The network also demanded that media outlets be held responsible for damage done to cooperatives from reports on the alleged embezzlement case at the Klongchan Credit Union Cooperative.

"Some wording in the coverage has caused misunderstanding. Several members of various cooperatives have in the end withdrawn money from the cooperatives," the network's leader Chainarong Nujeenseng said, as he submitted a petition to Prayut through a government complaint-receiving centre.

Supachai Srisupa-aksorn, the former chairman of Klongchan Credit Union Cooperative, has been accused of embezzling more than Bt10 billion from the cooperative.

As the case has caught the media spotlight, members of more than 1,200 credit-union cooperatives have expressed concern about their savings. A growing number have decided to close their accounts at the cooperatives.

"Irresponsible media coverage has shaken the credit-union cooperative system in the country," Chainarong complained.

His network criticised in particular a popular news programme on Channel 3 - and headed to the television station to lodge a complaint.

Chainarong also urged Prayut to try to restore the dip in public confidence via his weekly "Returning happiness to the people" programme.

News reports claimed that dozens of cooperatives had lent large amounts of money to the Klongchan Credit Union Cooperative.

The Central Bankruptcy Court is scheduled to rule on the rehabilitation case of the Klongchan Credit Union Cooperative on March 20. An informed source said this cooperative had more than 56,000 creditors.

Meanwhile, investigators continue to try to nail down accused culprits in the embezzlement case. Supachai was found to have channelled the cooperative's money to many people and entities including the Dhammakaya Temple and its abbot Phra Dhammachayo.

The cooperative has decided to drop all complaints against the Dhammakaya Temple and its abbot after they agreed to return donations of Bt684 million. Authorities, meanwhile, said the case could not be entirely settled out of court due to the criminal nature of the events involved.

In related news, Department of Special Investigation (DSI) officials questioned the abbot of a temple in Maha Sarakham province yesterday after finding he had received Bt23 million from Supachai.

The DSI said the abbot did not appear to have been involved in any suspicious deals - but the previous owner of a land plot the temple had bought with the Bt23-million donation from Supachai would be questioned. Supachai offered the donation specifically for the land purchase.

Source: http://www.nationmultimedia.com/national/Backlash-over-Klongchan-fraud-case-30256229.html

-- The Nation 2015-03-18

[NeverSure]

I wonder how much of its own capital that CU has. I wonder if it had that much of its own money to lose. It can't be losing customers' money for obvious reasons. Its own capital should equal about 20% of the total deposits it has. I wonder how much it has now after writing this theft off of its books?

In October 2013 when this story broke, a source I can't name said that a lot of customers were unable to withdraw their money.

[rametindallas]

Is everybody, given the opportunity, shady in Thailand? Even Buddhist monks take money; no questions, re: the source, asked. I wish the PM good health and energy to clean this sewer and bring happiness to the people. In the sixteen years I've been keeping up with Thai news, this government has done more to improve the quality of living for all Thais equally, in less than a year, than any other government in their whole tenure. I am more optimistic of Thailand's future than any time in the past; this is the first time I have become less cynical than more cynical.

[issanaus]

So will the other credit unions be willing to support improved legislation, supervision. governance, limitations of the rights and powers of directors?

I guess not - but they want to be protected from the fall out of the KCU scandal. The point is that some (32 from memory) had made unlawful loans to KCU so clearly issues exist with more than KCU.

[arthurboy]

I wonder how much of its own capital that CU has. I wonder if it had that much of its own money to lose. It can't be losing customers' money for obvious reasons. Its own capital should equal about 20% of the total deposits it has. I wonder how much it has now after writing this theft off of its books?

In October 2013 when this story broke, a source I can't name said that a lot of customers were unable to withdraw their money.

You are correct. My wife was unable to withdraw anything, and still can't. In fact she was repeatedly asked to keep depositing more.

I understand that CU is completely broke. All of the money has gone.

[ChrisY1]

This affair should be a wakeup call for the authorities...with 1200+ credit union cooperatives operating here, the government should now carry out thorough auditing to ensure customers security.

I would be very surprised if many of these institutions are 100% clean.

[JOC]

Is everybody, given the opportunity, shady in Thailand? Even Buddhist monks take money; no questions, re: the source, asked. I wish the PM good health and energy to clean this sewer and bring happiness to the people. In the sixteen years I've been keeping up with Thai news, this government has done more to improve the quality of living for all Thais equally, in less than a year, than any other government in their whole tenure. I am more optimistic of Thailand's future than any time in the past; this is the first time I have become less cynical than more cynical.

Yes praise the Lord!!

Please mention just one improvement Prayut has made to "improve the quality of living of all Thais equally"

The keyword being:Equally!!

[rametindallas]

Is everybody, given the opportunity, shady in Thailand? Even Buddhist monks take money; no questions, re: the source, asked. I wish the PM good health and energy to clean this sewer and bring happiness to the people. In the sixteen years I've been keeping up with Thai news, this government has done more to improve the quality of living for all Thais equally, in less than a year, than any other government in their whole tenure. I am more optimistic of Thailand's future than any time in the past; this is the first time I have become less cynical than more cynical.

Yes praise the Lord!!

Please mention just one improvement Prayut has made to "improve the quality of living of all Thais equally"

The keyword being:Equally!!

Hi, JOC. Judging from your previous posts, there is absolutely nothing I could say positive about Gen. Prayut that you would accept so I won't waste my time. I did, however give you the courtesy of responding.

[Lupatria]

So much to the future of "editorial freedom" and investigative journalism.

Weird defamation laws protect you from facts and reality.

[lucky11]

So much to the future of "editorial freedom" and investigative journalism.

Weird defamation laws protect you from facts and reality.

Actually, defamation laws protect you from potentially damaging fiction and lies and they are not weird in any way.

If investigative journalism uncovers anything involving wrongdoing and is factually correct then defamation charges cannot be brought or will be rejected on the grounds that they are baseless.

[seajae]

Is everybody, given the opportunity, shady in Thailand? Even Buddhist monks take money; no questions, re: the source, asked. I wish the PM good health and energy to clean this sewer and bring happiness to the people. In the sixteen years I've been keeping up with Thai news, this government has done more to improve the quality of living for all Thais equally, in less than a year, than any other government in their whole tenure. I am more optimistic of Thailand's future than any time in the past; this is the first time I have become less cynical than more cynical.

Yes praise the Lord!!

Please mention just one improvement Prayut has made to "improve the quality of living of all Thais equally"

The keyword being:Equally!!

he removed the red menace that was killing innocent children but then you lot were cheering those deaths when your red leaders mentioned them so it obviously wasnt a concern for you. Seems the only ones still bitching are those that wanted the reds to run riot for their hero thaksin, most thais are happy the red threat has been nipped in the bud

[Fat Haggis]

Is everybody, given the opportunity, shady in Thailand? Even Buddhist monks take money; no questions, re: the source, asked. I wish the PM good health and energy to clean this sewer and bring happiness to the people. In the sixteen years I've been keeping up with Thai news, this government has done more to improve the quality of living for all Thais equally, in less than a year, than any other government in their whole tenure. I am more optimistic of Thailand's future than any time in the past; this is the first time I have become less cynical than more cynical.

Yes praise the Lord!!

Please mention just one improvement Prayut has made to "improve the quality of living of all Thais equally"

The keyword being:Equally!!

he removed the red menace that was killing innocent children but then you lot were cheering those deaths when your red leaders mentioned them so it obviously wasnt a concern for you. Seems the only ones still bitching are those that wanted the reds to run riot for their hero thaksin, most thais are happy the red threat has been nipped in the bud

The red menace hasn't been removed at all, just the opportunity to stage attacks that's all, the sad fact of life is kids are being killed by a bigger menace down south and what did prayuth accomplish there when he was Commander in chief mate?

The 7% UDD hardcore are still there too, it's very hard to make 4.5 million people disappear without it being noticed don't you think?

Can you please post single instance where any TVF poster cheered the loss of the children please ones which I highly doubt the mods would have allowed and banned instantly, but please name those guilty as you're generalising way way too much?

You lot? So in your opinion anyone who doesn't support the junta is a red supporter? How very narrow minded and ever so simplistic an outlook on Thai politics mate, but so far off the mark that it makes you look and sound extremely bigoted.

I've no time for any terrorist actions regardless if it's here or anywhere else in the world.

[toybits]

Wasn't it that the damage was done by one of the SENIOR executives of the cooperatives? The media only reports what happened. Furthermore, the people - ESPECIALLY members of the cooperative whose money would be MORE than interested to find out what is happening to their money. I am sure they want the embezzler to be put away for a very long time at a place where the sun don't shine.

It is not irresponsible media coverage that is the cause of loss of confidence. It is the cavalier attitude of senior management and their total disregard for cooperative members who trusted their money to the cooperative that is to blame.

Edited March 18, 2015 by toybits

[clockman]

The truth always hurts! And truth is a rare comodity in Thailand.

[Tatsujin]

So much to the future of "editorial freedom" and investigative journalism.

Weird defamation laws protect you from facts and reality.

Actually, defamation laws protect you from potentially damaging fiction and lies and they are not weird in any way.

If investigative journalism uncovers anything involving wrongdoing and is factually correct then defamation charges cannot be brought or will be rejected on the grounds that they are baseless.

... defamation charges cannot be brought or will be rejected on the grounds that they are baseless ...

Not sure what planet you're living on, but it's sure not planet Thailand ... defamation cases are rarely dismissed or rejected based on actual or perceived wrongdoing or their correctness, they mostly go to Court or are settled out of Court.

[Traveling Sailor]

" "Irresponsible media coverage has shaken the credit-union cooperative system in the country," Chainarong complained."

Irresponsible, thieving credit union big wigs more like it.

[welshissan]

Is everybody, given the opportunity, shady in Thailand? Even Buddhist monks take money; no questions, re: the source, asked. I wish the PM good health and energy to clean this sewer and bring happiness to the people. In the sixteen years I've been keeping up with Thai news, this government has done more to improve the quality of living for all Thais equally, in less than a year, than any other government in their whole tenure. I am more optimistic of Thailand's future than any time in the past; this is the first time I have become less cynical than more cynical.

Yes praise the Lord!!

Please mention just one improvement Prayut has made to "improve the quality of living of all Thais equally"

The keyword being:Equally!!

he removed the red menace that was killing innocent children but then you lot were cheering those deaths when your red leaders mentioned them so it obviously wasnt a concern for you. Seems the only ones still bitching are those that wanted the reds to run riot for their hero thaksin, most thais are happy the red threat has been nipped in the bud

Same old record Seajae, when are you ever going to change it? You constantly repeat the same bull whatever topic is being discussed. Nobody on here wants people killed especially children. So why don't you use your zimmer frame and change the gramophone record, thank you. Nobody likes terrorists,be it red,yellow, Muslim or who ever!

[NeilSA1]

"BANGKOK: -- A NETWORK of credit union cooperatives called on Prime Minister General Prayut Chan-o-cha yesterday to help stop the media from shaking public confidence in their cooperative system. " They know where to turn to for help.

"Chainarong also urged Prayut to try to restore the dip in public confidence via his weekly "Returning happiness to the people" programme. "

Obviously people feel there is some merit and do watch this program.

[Lupatria]

The truth always hurts! And truth is a rare comodity in Thailand.

Here we go- its the hub of the painless.

[Acharn]

So much to the future of "editorial freedom" and investigative journalism.

Weird defamation laws protect you from facts and reality.

Well, no. Just like the libel and slander laws in Western countries, the defamation law allows truth as the defense. If you can show that what you said was true, you are exonerated. Doesn't work for lese majeste law, for obvious reasons. I don't know if you can counter-sue for legal costs and damages for false accusation if you win your case, though. The thing I don't like about it is that if you're accused of defamation, and if the Prosecutor's Office decides the prosecution should continue, you have the burden of proof to show that you are innocent by reason of reporting a true thing.

Can it be true that these "cooperative credit unions" are not subject to the same financial regulation as banks? Are they not covered by some form of deposit insurance? If so I am amazed that there have not been runs on them every couple of years, as used to happen in America and Britain before the Great Depression.

Edited March 18, 2015 by Acharn

[tomacht8]

Very unprofessional statement from the network of credit union cooperatives.

They could also say “thank you” to the media.

It has been revealed an error in the system.

A director of a cooperative could even go unnoticed for years, exhibit and sign 700-800 checks
in a value of 18 -21 billion Baht without any control and without any examination.

Thus, an organization I would not trust my money!

Better would have been a statement like:

“Thank you media.

We have corrected the system error immediately.

Now each check over 1 million must be countersigned from three persons.

An abuse is therefore impossible.”

That would create more confidence than the whining about reporting.

[TPI]

Is everybody, given the opportunity, shady in Thailand? Even Buddhist monks take money; no questions, re: the source, asked. I wish the PM good health and energy to clean this sewer and bring happiness to the people. In the sixteen years I've been keeping up with Thai news, this government has done more to improve the quality of living for all Thais equally, in less than a year, than any other government in their whole tenure. I am more optimistic of Thailand's future than any time in the past; this is the first time I have become less cynical than more cynical.

Surely the Abbots can be charged with the numerous offences that must have taken place? This PM is by far the most effective I've seen in the last 16 years, please keep up the good work and don't be upset by the nay sayers!

[issanaus]

Is everybody, given the opportunity, shady in Thailand? Even Buddhist monks take money; no questions, re: the source, asked. I wish the PM good health and energy to clean this sewer and bring happiness to the people. In the sixteen years I've been keeping up with Thai news, this government has done more to improve the quality of living for all Thais equally, in less than a year, than any other government in their whole tenure. I am more optimistic of Thailand's future than any time in the past; this is the first time I have become less cynical than more cynical.

Surely the Abbots can be charged with the numerous offences that must have taken place? This PM is by far the most effective I've seen in the last 16 years, please keep up the good work and don't be upset by the nay sayers!

If the report from the BKK Post from yesterday is correct then the DSI is not playing ball with the Klongchan Credit Union, Wat Dammakaya or the or the other credit unions as it has stated its intention of extending its focus on Wat Dhammakaya in the context of public fraud regardless of the agreements of any of the parties. So the issue of mismanagement of credit unions will be staying in the public spotlight.

Therefor if the credit unions are worried they should release audited accounts that detail their exposure to Klongchan Credit Union and the impact that it has on their financial position. If they have mismanaged their Credit Unions then the sooner that it is exposed the better. Yes I do feel sorry for members who have been let down or subjected to fraud but I have no sympathy for the (mis)management.