The Credit Union League of Thailand Ltd says it will step in to help Klongchan Credit Union Cooperative Ltd cope with its liquidity problems.
Credit union league chairman Mana Sudsanguan said yesterday the league was ready to lend funds to the Klongchan union cooperative to help ease liquidity problems facing small cooperatives which operate under it.
The cooperative's assets have been frozen during an investigation by the Department of Special Investigation (DSI) and the Anti-Money Laundering Office (Amlo).
Mr Mana said the amount to be loaned to the cooperative would be based on the value of its current assets.
The cooperative has shares worth 34 million baht with the league. A loan, based on these assets, would likely be approved, he said.
The league has been aware of the Klongchan union cooperative's financial management problems for a while, Mr Mana said.
The cooperative, he said, stopped allowing balance sheet audits by the league five years ago while expanding its nationwide member base.
The Klongchan cooperative was an autonomous body so the credit union league had no authority to force the audits, he said.
The league would step up efforts to ensure transparency in the management of more than 1,300 cooperatives which are members of the Klongchan cooperative, to thwart similar episodes of fraud, Mr Mana said.
The former chairman of the Klongchan credit union cooperative, Supachai Srisupa-aksorn, has been accused of embezzlement and fraud, causing losses of more than 12 billion baht.
The DSI and Amlo are investigating the allegations and have frozen assets believed to have been embezzled by him.
Deputy Prime Minister and Agriculture and Cooperatives Minister Yukol Limlaemthong said all members of the cooperative were assured they would get their money back because the cooperative's assets had not disappeared but were only frozen for inspection.
He said the Cooperative Auditing Department would work together with the DSI on the probe.
The ministry was considering reviewing the cooperative law to identify and close loopholes in light of the cooperative scandal, Mr Yukol said.