GSB boss resigns over BAAC 'rice' loan

Government Savings Bank (GSB) president Worawit Chailimpamontri on Tuesday announced his resignation in an attempt to take responsibility for mass withdrawals sparked by an inter-bank loan to the Bank for Agriculture and Agricultural Cooperatives (BAAC).

Despite denials from the bank, the five billion baht loan to the BACC is widely considered to be intended to pay farmers owed money under the loss-ridden rice-pledging scheme.

Mr Worawit made the announcement of his resignation after a GSB board meeting to discuss unusually high cash withdrawals by panicked customers following the bank’s decision to extend a loan to the BAAC.

Mr Worawit said he had reviewed the negative impact of the loan deal in the past few days and decided to resign after customers withdrew more than 30 billion baht on Monday alone and continued to take money out of the bank today. 

He said he hoped his resignation would show that he was responsible for the loan decision and restore confidence in the bank, adding that he would serve as GSB acting president for 30 days as required by the law.

Mr Worawit repeated that the GSB had extended the five billion baht loan as part of its existing 20-billion-baht credit line to the BAAC on the inter-bank market, and insisted that the funds were not meant to shore-up the rice-pledging scheme.

However, GSB employees were not convinced by his explanation. They gathered at the bank's headquarters this morning to demand his resignation in protest at the BAAC loan and its alleged use to fund the rice subsidy project.

Meanwhile, the GSB board passed a resolution to cancel its deliberation on offering further such loans for the BACC and pledged to retrieve the five billion baht loan earlier approved.

Share your thoughts

Discussion 1 : 19/02/2014 at 10:27 AM
If it was his and only his decision to make the loan he should resign but I suspect he was pressured to make the loan because he knew that there would be a run on the bank and nobody who understands banking would be crazy enough to authorize such a fool hardy loan.
Discussion 2 : 19/02/2014 at 06:13 AM
I hope someone follows up on this resignation to see if he really is gone in 30 days or whether he "changes his mind" or is "convinced to stay" aftre his required 30 day fillin period. If he really does resign, what other well paid government job wil he get? If this really is a legitmate resignation for the reasons he stated, I congratulate him for his ethics ... a sadly missing attribute on all sides of this confrontation.
Discussion 3 : 19/02/2014 at 01:12 AM
Khun Worawit, did you miss out something not disclosed? Rumours are so strong that you belong to the red shirts. Care to clarify?
Discussion 4 : 18/02/2014 at 11:14 PM
Great example of what People's Power is all about. Similar to Amnesty Bill. The only difference is that the Thaksin regime does not take responsibility. They cling to their power as they make every day still in their seat a lot of money.
Discussion 5 : 18/02/2014 at 11:08 PM
Nice that there are those who have some honor, are willing to face up to their actions and take responsibility, even if there may be varied opinions on those actions. That is what a true honorable leader would do, and what is sorely lacking with the country's current leadership. Just one protest of the scale that we have seen repeatedly for months now would likely have prompted a Japanese Prime Minister to resign.
Discussion 6 : 18/02/2014 at 11:05 PM
another guy who falls on his sword for Thaksin....I wonder what his personal reward will be for handing over 20bn Baht of questionable money
Discussion 7 : 18/02/2014 at 10:55 PM
Too bad the leadership of the country doesn't have the same sense of accepting their responsibilties and doing the right thing. Lying and clinging to power is not the way to go.

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