Organization: Central Michigan University
Newsgroups: bit.listserv.seasia-l
Date:         Thu, 19 Nov 1992 10:55:58 EST
From:         Elliott Parker <3ZLUFUR@CMUVM.CSV.CMICH.EDU>
Subject:      TH: Opposition blast Govt delays

=======================  Forwarded  Message  ===========================
Date: Thu, 19 Nov 92 00:39:17+0700
From: Kamol Hengkietisak <kamol@ipied.tu.ac.th>
Subject: Bangkok Post Nov 19: Opposition blasts Govt's delays

THE Opposition yesterday accused the Government of shirking its
responsibility by failing to take action against suspected stock
manipulators who caused the stock index to plunge more than 50
points in trading yesterday morning.

Chart Thai MP Nevin Chidchob said the Government should have taken
action earlier to avert the collapse.

He said key Cabinet economic ministers vested with public faith
when the Government came into office had failed the people by not
acting when the trading volume on the SET board doubled recently.

"The economic ministers who are financiers and bankers should have
heeded the warning signals when the trading volume increased from
between 5,000 million and 6,000 million baht a day to between
10,000 million and 20,000 million baht," he said.

Mr Nevin said the decision to take action against 11 investors led
by Song Watcharaviroj was discriminatory because they were being
made scapegoats while the real culprits were allowed to go free.

He said the Government should have quelled rumours of the possible
arrest of Mr Song and his associates as it led to panic selling on
the market.

The Prime Minister, Finance Minister, Interior Minister or the SET
should have said the rumours were groundless instead of letting
uncertainty prevail.

"Every party has passed the buck, including the Government and the
Securities Exchange Commission. The real problem is the
over-extension of loans (to stock investors) and it is the direct
responsibility of the Bank of Thailand to take action," the Buri
Ram MP said.

Mr Nevin said there were fears there might be some collaboration
between commercial banks if the Government fails to take action
since the developments on the SET indicate a network of
collaborators.

He also criticised the SET action to suspend the trading of
certain stocks and then lift the suspension without giving any
explanation.

Mr Nevin said things could turn critical if the index dipped below
850 points.

The Opposition will call for a restructure of the SET and its
performance and a correction in shortcomings in regulating laws to
restore confidence in the stock market.

Otherwise an incident similar to the collapse of Chamoy's
revolving funds might occur and foreign investment would be
withdrawn to exacerbate the situation, he said.

Chart Thai MP Chongchai Thiengtham said the House Financial
Affairs Committee would invite the Finance Minister, SEC members,
SET executives and Mr Song to give testimony at its meeting today
on what was happening in the stock market.

Mr Chongchai, who chairs the committee, said he objected to a
government injection of more than 10,000 million baht to shore up
the market.

He said this was not the way to solve the problem.

Mr Chongchai said those who usually gain from trading stocks are
powerful people, while small investors who are ordinary people who
have savings in commercial banks are those most affected from
stock manipulation.

Chart Thai spokesman Decha Sukharom said the Opposition was
gathering information into reports that Mr Song had connections
with members of some coalition parties.

The Opposition could use this information to launch a censure
debate against the Government sooner than expected, he said.

Mr Nevin, in an apprarent reference to a statement by Interior
Minister Chavalit Yongchaiyudh about Mr Song, asked who should be
held responsible when a senior person backed another as a good and
religious man.
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