Former Klongchan head suspected of fraud: DSI
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THE Department of Special Investigation has uncovered embezzlement and irregularities in the books of the troubled Klongchan Credit Union Cooperative, a source said yesterday.
Scrutinising the credit union’s regulations and directives, DSI agents found suspicious deposits and withdrawals of former chairman Supachai Srisupa-aksorn, as he may not have followed the rules and standard operating procedures.
Supachai was found to have resorted to resolutions to create the appearance of legitimacy in making the transactions, which were deemed a violation of the Cooperative Act.
He approved loans without collateral to juristic persons or members who did not hold shares in the credit union, causing losses to the credit union.
Although as chairman he could make large withdrawals, he may have abused his authority.
He withdrew from and deposited money at sub-branches where he also held executive posts.
Officials believe it was a case of embezzlement because the money trail suggested systematic fraud.
The cooperative’s registrar and auditors had warned him many times but to no avail. The DSI official said investigators need more evidence to find out who else was involved and benefited from the siphoning of credit union funds.
The DSI suspects a large group of people such as managers, finance officials and accountants may have conspired to allow the money to be withdrawn without valid reasons.
They were found to have had up to Bt5-6 million wired to their accounts, which was unusually high given their low ranks.
The officials are seeking to find the entire network of scammers.
