The process of finding those responsible for the economic crisis of 1997 reached its culmination in the later stages of 2001.

The Bank of Thailand singled out Rerngchai Marakanond, a former governor, as legally culpable for the damage caused by the baht defence.

Rerngchai

Absolved were two other former central bankers, former governor Vijit Supinit and former deputy governor Chaiyawat Wibulsawasdi, along with Amnuay Viravan, the finance minister at the time.

All three had been involved in the central bank's monetary policy and the Financial Institutions Development Fund's injection of loans into the rapidly crumbling financial system.

The central bank and the Exchange Equalisation Fund in December 2001 filed civil charges against Mr Rerngchai, alleging that the decisions he made during the currency crisis in 1997 had caused damage to the state, estimated at 186 billion baht as of the end of 2001.

The prosecutors have handed the documents to the civil court, which is expected to hold its first hearing on the case in February.

Mr Rerngchai vowed to vigorously defend himself, maintaining he was not responsible for the financial losses, and citing the bank's lack of transparency.

He subsequently filed criminal charges against Finance Minister Somkid Jatusripitak, central bank governor M.R. Pridiyathorn Devakula and the senior director of the Official Reserves and Financial Market Management units. He alleged inappropriate processes used to single him out as the sole individual responsible for the failed baht defence. The criminal court has the case listed for hearing in March.

The central bank has said it will announce the method used to calculate the financial damage to the public caused by Mr Rerngchai's policies.

Its decision differed from the approaches of previous committees that had concluded that no one would be held be responsible for any losses incurred in 1996-97.

The central bank said that the most significant damage was calculated from around 2,000 swap transactions the central bank entered between Nov 1, 1996 and June 30, 1997.

But whether it can successfully prosecute the case in court remains to be seen. The government's efforts to extradite Pin Chakkapak, a former president of Finance One, over allegations of fraud, were unsuccessful.

Thailand had accused Mr Pin of embezzling 2.1 billion baht, but the British High Court said there was no evidence of dishonesty or theft. Mr Pin, who left Thailand in 1997, was arrested in London in December, 1999.

The central bank's efforts to press civil and criminal charges against other former executives of financial institutions have largely failed.

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