Revenue chief moved after VAT scandal

THE DIRECTOR-GENERAL of the Revenue Department, Satit Rungkasiri, was removed by the Cabinet yesterday as an apparent consequence of a recent VAT-refund scandal that cost the state billions of baht in lost revenue.
Satit will become an inspector-general of the Finance Ministry and will be replaced by a current inspector-general, Sutthichai Sungkamanee, said Deputy Government Spokesman Pakdeehan Himathongkam.
The Cabinet yesterday also appointed another inspector-general of the Finance Ministry, Rakop Srisupaat, as director-general of the Customs Department, the spokesman said. Rakop will fill the seat left vacant by Benja Louicharoen, who resigned to become deputy finance minister.
The appointments become effective on October 1, the start of the new fiscal year.
Finance Ministry sources said Satit’s removal could have something to do with the scam involving illicit refunds of value-added tax (VAT), which is being investigated by the Department of Special Investigation (DSI). The ministry has also set up a committee to investigate severe allegations against 18 Revenue Department officials.
The Revenue Department had said that it found 38 entrepreneurs suspected of involvement in VAT-refund fraud that cost the state about Bt2.87 billion. The ministry inquiry panel and the DSI uncovered fraudulent tax refunds worth Bt1.13 billion in Samut Prakan, and Bt3.2 billion worth in Bangkok.
The Finance Ministry’s permanent secretary, Areepong Bhoocha-oom, yesterday supported the appointments of Sutthichai and Rakop, saying they are both well qualified and capable.
Areepong said Sutthichai, who headed ministry inquiry panels, could meet the need for expertise in investigation, particularly on tax-refund fraud. “It’s suitable to move him from the post of inspector-general.”
Areepong said Rakop was an expert in customs laws and regulations. He said that although Rakop’s promotion might be viewed as too early, the finance minister and both his deputies all agreed that he was well qualified for the new job.
The permanent secretary said he believed the two new directors-general would be able to bring more progress to the ministry’s work.
Regarding speculation about his own possible removal, Areepong said such a rumour reappeared every six months. He added that there would be no more transfers of senior ministry officials for some time after yesterday’s appointments. Sources said that several officials at the agency were convinced the promotions of Sutthichai and Rakop had to do with politics. Their appointments came only a few months after the two senior officials became inspectors-general of the ministry, the sources noted.