Staff in uproar over role in TTA shareholder fight

Besieged Vijit quits SEC helm

Staff in uproar over role in TTA shareholder fight

Vijit Supinit has resigned as chairman of the Securities and Exchange Commission after facing fierce opposition from his staff over the past week for alleged conflict of interest.

Vijit: SEC staff wore black to pressure him

The head of the stock market's watchdog yesterday bowed to demands from more than 300 SEC officials who wore black to pressure the 69-year-old to vacate his post over questions about his role in a shareholder battle at listed shipping company, Thoresen Thai Agencies.
Chalee Chantanayingyong, the SEC deputy secretary-general, said Mr Vijit would step down from today.
Mr Chalee, who joined the protest with other senior SEC executives, told the angry staff that Mr Vijit had informed Thirachai Phuvanatnaranubala, the SEC secretary-general, of his intention to quit his post.
The staff refused to disperse without written confirmation, but later agreed to return to work after reassurances Mr Vijit would submit his resignation formally by day's end.
"[SEC] staff are concerned about the image of the agency and that it could be destroyed by this incident. [The protest] was aimed at communicating to the public that [Mr Vijit's] actions should be separate from those of the organisation," Mr Chalee said.
"The staff disagreed with the chairman's actions and want to maintain a positive perception of the SEC, an organisation that they have devoted their loyalty to for the past two decades."

Last week, a group of investors claiming a 30% shareholding in TTA announced its intention to push for a change in directors and senior management at the shipping firm. TTA's management said the investors included Bee Taechaubol, a former executive of Country Group Securities, Weera Manakongtreecheep, a former president of defunct Sitca Finance and Securities and Mr Vijit. The shareholder battle sparked an outcry over the appropriateness of the country's top securities regulator taking a personal role in a stakeholder dispute within a listed company.
Mr Bee yesterday denied any connection with the investor group and said he held only 100 shares in the company. He said Mr Vijit had acted mainly as a go-between to arrange a meeting between TTA shareholders and management. It is still not clear whether Mr Vijit owns TTA shares.
Finance Minister Korn Chatikavanij last week directed both the SEC and the Stock Exchange of Thailand (SET) to probe Mr Vijit's involvement in the TTA case, which included two meetings with Mr Bee and the disgruntled investors.
Mr Korn said the case had eroded public confidence in the capital market.
"This [scandal] reflects the erosion in moral values. It's hard to understand how something like this could have happened. The persons who selected [Mr Vijit] probably had no idea that this could have happened," he said, taking a swipe at the Somchai Wongsawat government, which appointed Mr Vijit as SEC chairman in 2008.
Mr Thirachai said he was not surprised by Mr Vijit's resignation.
"What is surprising to me is how someone chosen to serve as chairman could make such a mistake as to shake public confidence," Mr Thirachai said.
He said while legal amendments to the SEC law would take time, the agency could issue new regulations to guard against conflicts of interest.
"But frankly, the issue isn't really the regulations, but rather whether those entrusted with regulatory power understand what is right and what is wrong," Mr Thirachai said.
Mr Vijit is no stranger to controversy. A career central banker, Mr Vijit resigned as governor of the Bank of Thailand in 1996 amid allegations of misconduct over the regulator's handling of the collapsed Bangkok Bank of Commerce. Ethical questions also surrounded his term after it was found that he had accepted shares in a finance company due to list on the exchange and had played a role in a wire-tapping investigation by the National Intelligence Agency of Ekamol Khiriwat.
In 2003, Mr Vijit was cleared of any wrongdoing and appointed by the Thaksin Shinawatra government as chairman of the SET, a post he held until 2007.
Nawaaporn Ryanskul, a former central banker and secretary-general of the Government Pension Fund, has already been appointed by the cabinet as the next SEC chairman from next month. Mr Vijit's term had originally been set to end on July 13.
SEC directors, who met yesterday to discuss the TTA case, also agreed to review existing ethical and governance guidelines, including whether an outright ban on investment activity in listed companies was necessary.
Sources said Mr Vijit, who did not attend yesterday's board meeting and could not be contacted for comment, had originally refused to step down from the board, arguing his actions did not violate any laws or regulations. But other SEC directors urged Mr Vijit to quit to protect the institution's integrity.
SEC directors are not expressly prohibited from investing in listed companies, but are required to disclose transactions and shareholdings to the commission. SEC staff, who are privy to market-sensitive information, are restricted from investing in listed firms.
Tipsuda Thavaramara, an SEC assistant secretary-general, said prohibiting directors from holding shares in local companies could exclude many qualified, experienced people from serving on the commission board.
"Yes, a rule could be imposed prohibiting SEC directors from holding a position in a listed firm. But no rule can protect against conflicts of interest if the person lacks good governance," Ms Tipsuda said.
Duangmon Chuengsatiansup, director of the SEC's broker-dealer supervision department, expressed satisfaction with the final outcome of the case.
"We have all achieved our objective of protecting the SEC's image today and maintaining our credibility," she said.
SET president Charamporn Jotikasthira said the case has shaken investor confidence in the integrity of the market.