Deputy Finance Minister clarifies no involvement in alleged Krung Thai Bank loan scandal

Deputy Finance Minister Vorapak Tanyawong on Monday addressed parliament regarding claims raised by MP Lertsak Pattanachaikul (Pheu Thai Party) about Energy Earth Public Company Limited. The company faced allegations of irregularities, including approval of loans exceeding authorised limits. Vorapak, who previously served as Managing Director of Krung Thai Bank, was accused of facilitating the company in obtaining loans beyond the permitted amount on February 21, 2025.

Vorapak explained that when he served as Chair of the Advisory Board under former Deputy PM and Finance Minister Pichai Chunhavajira, the loans were reviewed and no issues were found. He clarified that Energy Earth had been a bank client for several years, initially as an SME in Sriracha with sales of around 10 billion baht. By the end of his four-year term in 2016, the company’s sales had grown to 20 billion baht, from just a few thousand baht at the start.

He stressed that the company’s growth in sales and profit was genuine and not comparable to the case of Stark Corporation Plc, which faced SEC charges for falsifying accounts. Energy Earth was never reported or charged by the SEC; all transactions were legitimate, with real assets and bonds issued under SEC oversight.

Vorapak added that the actual loss occurred after he left the bank at the end of 2016, when the company became non-performing in May 2017. Prior to this, the company had been a reliable client with nearly 30 billion baht in trades and no defaults. The non-performing status arose from sudden withdrawal of credit by major creditors, not from mismanagement or falsified documents.

Regarding claims about nonexistent mines used as loan collateral, Vorapak emphasised that the matter is under investigation by the National Anti-Corruption Commission (NACC). He reiterated that his role was only to review loans, not approve bond issuance, which was the responsibility of another management team.

Vorapak concluded: “The facts documented with the NACC are substantial, and further testimony will clarify the situation in the coming months. By the end of this year or early next year, the truth will be revealed. I urge MPs to monitor closely, as the misinformation comes from one-sided distortions.”