Saxena denied

Former Bangkok Bank of Commerce executive Rakesh Saxena is expected to be returned to Thailand tonight to face fraud charges after losing a bid in Canada's highest court to avoid extradition.

The Supreme Court of Canada yesterday denied Mr Saxena's request for a hearing at which he would have tried to overturn a lower court decision upholding the extradition. The high court gave no reason for its decision.

He is expected to return to Thailand tonight with a team of officials led by chief prosecutor for foreign affairs Sirisak Tiyaphan.

Mr Saxena, 57, who fled to Canada in May 1996 to avoid prosecution, will be held at the Crime Suppression Division prison pending questioning by police adviser Pansiri Prapawat as the lead investigator.

Mr Saxena has been fighting extradition to Thailand for 13 years to avoid facing charges of embezzlement from the collapsed BBC. He was adviser to BBC president Krirkkiat Jalichandra at the time.

The bank's collapse signalled regulatory failures that led to the 1997 Asian financial crisis.

Mr Saxena is accused of conspiring to embezzle 1.6 billion baht, currently about US$82 million, from the bank, according to a 2006 British Columbia Court of Appeal ruling upholding his extradition.

Citi Trading Corp, headed by Mr Saxena, obtained the loan fraudulently, Judge Kenneth Mackenzie wrote, citing government documents used to support the extradition request.

Mr Saxena used the money to pay personal debts as well as those of his other companies, the judge said. Mr Saxena repaid about 650 million baht.

Saxena told Bloomberg News in a 1997 telephone interview that he took no money from the bank. As an adviser, he had no authority, he said at the time.

''Saxena can't be prosecuted in Thailand because there is not enough evidence,'' his lawyer, Amandeep Singh, said after the court decision yesterday. ''We haven't given up at this point.''

To force Mr Saxena on to a plane and send him to Thailand immediately after the ruling would be draconian, he said. Mr Saxena had a stroke in March and is confined to a wheelchair, the lawyer said.

Thailand sought Mr Saxena's extradition soon after he arrived in Canada. The 13-year battle has been the longest in Canadian history.

Karlheinz Schreiber, a former arms-industry lobbyist, this year lost a 10-year fight against extradition to Germany.

Mr Saxena was free on bail for the first eight years, under what Mr Mackenzie called unusual terms. He was required to pay the cost of supervision, estimated at C$43,000 (1.29 million baht) a month.

Mr Saxena argued he cannot get a fair trial in Thailand and faces possible danger because of alleged human rights violations here, according to Canadian court files.

Yet no evidence had been provided by Mr Saxena showing he faced risk of maltreatment, British Columbia Judge John Hall wrote on May 15 on behalf of a three-member panel that upheld the extradition.

Mr Saxena had connections with the so-called Group of 16 politicians including Newin Chidchob, now the Bhumjaithai Party de facto leader.

His pending return has raised speculation he would expose deals made between BBC and the group of fhlawmakers.

But Mr Newin said the return of the fugitive financier would not spell trouble for the coalition government.

The fugitive banker is known to have connections with Mr Newin, his Group of 16 and the former Chart Thai party _ currently Chart Thai Pattana and a coalition party.

Certain members of the Group of 16 including Suchart Tancharoen have been implicated in plundering the bank and bringing it down. Mr Saxena once threatened to expose evidence about its alleged contributions to the Chart Thai Party's election campaign.

Mr Newin said he never took out a loan with BBC and had never faced a lawsuit in connection with defrauding the bank.

''The laws will take care of it. Those who have done wrong will face the music. The BBC scandal has nothing to do with the government,'' he said.

Several politicians who were implicated in the BBC embezzlement scandal had washed their hands off politics.

Mr Suchart, who is with the coalition Puea Pandin Party, had kept his financial obligations following the BBC clean-up.

The case was exposed by Democrat secretary-general Suthep Thaugsuban, who is now in an alliance with Mr Newin's Bhumjaithai in the coalition government.

He said he and and Mr Suthep had buried the hatchet following the debate on the BBC scandal and were now on good terms.

''I am confident that his return will not affect the coalition government. As for the political feud [involving the scandal], it is all in the past,'' he said.

Mr Saxena's extradition is likely to be a relief for public prosecutors, as the statute of limitations of his case is due to expire in July next year. The collapse of BBC caused billions of baht in damage.