Credit Union 'cheated members'
- Published: 10/07/2013 at 05:27 PM
- Online news:
The Anti-Money Laundering Office (Amlo) and the Department of Special Investigation (DSI) are investigating charges of multi-billion-baht fraud by executives of Klongchan Credit Union Cooperative Ltd after complaints by clients they could not withdraw their funds.
Klongchan Credit Union Ltd is under investigation on embezzlement of 12 billion baht..
More than 100 members of the cooperatives filed petitions with police alleging that Supachai Srisupaaksorn, the cooperative’s chairman and associates, had embezzled an estimated 12 billion baht, leaving members unable to withdraw their own money.
Noppadol Uthen, Amlo’s special legal expert, said the DSI has accepted to investigate this case.
Amlo froze 300 plots of land owned by Mr Supachai and associates in Kanchanaburi, Ayutthaya and Nakhon Ratchasima provinces. Initial appraisals found several plots were worth more than 90 million baht apiece, and the DSI estimates their total value at more than one billion baht.
The department also has frozen nine bank accounts and seized 10 vehicles.
Kittikong Kanachan, a case officer from the DSI, said the department will question clients, and will likely bring charges against the cooperative’s executive directors and officials.
As of Wednesday, all the assets were frozen, and any transactions will also bring money laundering charges.
On the inspection made Wednesday, officials from the Cooperative Auditing Department joined the two agencies to examine Klongchan's financial documents. The department falls under the Ministry of Agriculture and Cooperative and is charged with supervising the operation of cooperatives nationwide.
The initial findings showed "many" withdrawals involving hundreds of millions of baht at a time, without authorised signatures.
Mr Supachai said regulations provide that large withdrawals must be counter-signed by two authorised executives, in this case Mr Supachai, the vice executive chairman, and the treasurer. It should be impossible to make huge withdrawals without these signatures.
Mr Supachai claimed the cooperative's former executive board filed charges against him at the Crime Suppression Division, but some cases already have settled. He requested that former board members return important documents.
The cooperative’s financial statement has been audited by a third party, so if there are any irregularities, auditors should find them. But the cooperative was able to close its accounts with a clean auditing report that indicated no problem, according to Mr Supachai.
During the inspection, several members of the cooperative asked to withdraw their funds and close their accounts. They have not received their money, although they received dividends.
According to its website, the Klongchan Credit Union Cooperative Ltd was established in December, 1983, and has a total of 52,886 members with assets of 22.4 billion baht. Deposits total 14.41 billion baht and there are outstanding loans of 15 billion baht, the latest report states.
The website says the motto of the Credit Union is, "Honesty, Sacrifice, Responsibility, Sympathy and Trust".
About the author
Writer: Online Reporters