The management of cash-strapped Klongchan Credit Union Cooperative yesterday expressed confidence that its rehabilitation plan would be approved and the group would recover within five years.
Phadej Mungthanya, chairman of the Klongchan Credit Union Cooperative which lost billions of baht in an embezzlement scandal, holds documents during a press conference where he assured those gathered that the cashstrapped cooperative will not go bankrupt and will recover within five years. PATTANAPONG HIRUNARD
It was the first time the management headed by chairman Phadej Mungthanya has publicly addressed the cooperative's financial status since it took over 11 months ago.
The cooperative's liquidity problem arose a few years ago when its former chairman, Supachai Srisupa-aksorn, was accused of embezzling billions of baht from the cooperative. The group drew public attention when it turned out that more than 800 million baht siphoned from the cooperative was donated to the controversial Wat Phra Dhammakaya and its abbot, Phra Dhammachayo.
Mr Phadej yesterday announced a plan to turn the cooperative, which has debts of about 21 billion baht.
The cooperative has about 50,000 members who in total deposited around 15 billion baht.
He said the new management has three main objectives: rehabilitating the cooperative, pursuing lawsuits to retrieve the embezzled assets, and collecting debts.
According to Mr Phadej, the court is expected to rule in early March if the cooperative should enter the rehabilitation process or go bankrupt.
Prapassorn Pongpanpisal, a board member, said the rehabilitation plan submitted to the court outlines sources of funds to help turn the cooperative around.
It expects to receive 5 billion baht from debt management schemes, another five billion baht in financial aid from the government, and various amounts from asset management such as lending.
"We are confident that within five years the cooperative will come around and will be able to pay off its 21 billion baht of debts," Ms Prapassorn said.
According to Ms Prapassorn, the cooperative has filed three civil lawsuits seeking to retrieve the embezzled money.
One is filed against Mr Supachai, Phra Dhammachayo, and Wat Phra Dhammakaya seeking the return of 818 million baht. The next hearing is on March 16.
Another is against Mr Supachai and eight other people seeking the return of 10.64 billion baht and the next hearing is scheduled for April 28.
The third lawsuit is against Mr Supachai and Phra Khur Palat Wicharn Thirangkuro seeking the return of 119 million baht with the next hearing also on April 28.
Mr Phadej said there are good signs that Wat Phra Dhammakaya will return about 700 million baht to the cooperative.
He said the temple was unaware of the money's origin when it was donated by Mr Supachai, adding that both parties should reach a settlement in one or two weeks.
Meanwhile, the Department of Special Investigation said it will soon summon people who received cheques from Klongchan Credit Union Cooperative for questioning in connection with the embezzlement scam.