FRIDAY, March 29, 2024
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Court orders payout to 9 Klongchan victims

Court orders payout to 9 Klongchan victims

The Central Administrative Court has ordered the Cooperative Promotion Department to pay more than Bt 300,000 compensation to nine victims of a cooperative embezzlement.

The ruling is based on the grounds that the department failed to swiftly tackle the massive Klongchan Credit Union Cooperative embezzlement even though it had received a complaint about alleged irregularities many years ago.
According to the court, a probe by the department found the cooperative illegitimately granted loans to outsiders in 2003. Yet the cooperative was allowed to continฌue its operation even after it did not correct its mistake. By 2011, its illegitimately grantฌed loans rose to more than Bt26 billion. 
In 2012, the cooperative advanced Bt3.39 billion to its thenchief Supachai Srisupaaksorn.  Supachai is now serving a jail term in relation to the embezzlement. 
The Central Administrative Court also blamed the department for declaring Klongchan Credit Union Cooperative an excellent cooperative in 2011. 
“The department is indeed negligent,” the court ruled earlier this month. 
The court awarded more than Bt370,000 in compensation plus annual interest of 7.5 per cent to nine plaintiffs because they were unable to withdraw money from the cooperative or to sell their shares in the cooperative since 2013.
 
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