The committee managing the financial rehabilitation at the Klongchan Credit Union Cooperative (KCUC) admitted yesterday it would not be able to complete the payment of debts to KCUC members affected by the multi-million-baht embezzlement scandal by year-end as previously promised.
Prakit Philangkasa, chairman of the committee, made the announcement at a press conference following a ruling by the Central Bankruptcy Court, which ordered the KCUC to sell two major plots of land via a formal auction.
Prior to the court ruling, the KCUC said it had already found prospective buyers for the two plots, who agreed to purchase them at the estimated prices, said Mr Prakit.
That plan was opposed by an official who later brought the dispute to the Central Bankruptcy Court, claiming the estimated prices were far lower than the actual prices of the plots, which were golf courses, he said.
The land the committee is permitted to sell -- a nine-rai plot in Praeksa tambon, Samut Prakan and 1,616 rai in Sai Yok district, Kanchanaburi -- have long been abandoned and are in isolated areas, said Mr Prakit.
In light of the court ruling, the committee has to follow the instructions to sell the plots by auctioning them, he said, adding that this type of asset sale will take much longer to complete. That will make it impossible for the KCUC financial rehabilitation committee to fulfil its previous promise to get the debt payment done by the end of this year, he said.
Worse still, the committee is also facing more problems hindering it from turning the assets seized from KCUC ex-chairman Supachai Srisupa-aksorn into money to fund the debt payments, as they are still impounded by the Department of Special Investigation.
Mr Prakit said the KCUC will not comment on allegations that it has committed new fraud in its financial rehabilitation, adding the KCUC is determined to fight the case in court.
That campaign is being spearheaded by Paiboon Nititawan, the former chairman of the defunct National Reform Council committee on religious affairs.
Mr Paiboon has led about 665 members of the KCUC to file a criminal suit against the KCUC over the alleged fraud, said Mr Prakit, adding that Mr Paiboon and those backing him will have to take responsibility for publicly spreading those claims.