The board of the Klongchan Credit Union Cooperative, which is embroiled in a 12-billion-baht embezzlement scandal, is likely to be removed soon, the Department of Special Investigation (DSI) says.
DSI chief Tarit Pengdith said he has received a letter from the Agricultural Cooperatives Ministry. It has ordered the Cooperative Promotion Department director-general to remove the cooperative's board and freeze any transactions related to the credit union's operation that may cause financial damage to members.
The Cooperative Promotion Department director-general is expected to act in his capacity as the registrar of cooperatives.
The DSI earlier asked that the board be removed during the embezzlement investigation.
Board chairman Supachai Srisupa-aksorn and his associates _ Saranya Manmad, Lapat Somkam and Krisada Meeboonmak _ face fraud charges in connection with the embezzlement scandal in which the cooperative allegedly offered loans worth 12 billion baht to companies owned by Mr Supachai.
The DSI's initial investigation has found that several witnesses, who were identified as borrowers by Klongchan, denied they had obtained loans from the cooperative.
Some of them claimed they had received millions of baht in brokerage fees for introducing new members to the cooperative.