The allegation stems from the proposal by Pridiyathorn that a former chairman of the now-defunct GF Finance and Securities company become a director of the Bank of Thailand (BOT).

Narongchai Akrasanee was accused of mismanagement in 1998 by the bank, the ministry source said yesterday.

The source alleged the appointment was "not proper" because the claims against Narongchai included assertions he caused the collapse of GF Finance and Securities. Narongchai was never formally charged by prosecutors.

"Thus, the appointment contradicts BOT regulations that directors and top executives of the central and commercial banks must not include those who have faced allegations of any kind," the source said.

According to a notification of July, 2004 banks may not appoint those who have been accused by the BOT, the Securities and Exchange Commission or other Thai and foreign regulators of fraud or negligence as stipulated by the Commercial Banking or Finance Company and Credit Foncier Company Acts.

As governor of the central bank Pridiyathorn forced Krung Thai Bank to sack its then president Viroj Nualkhair using the regulation.

However, according to the source, Pridiyathorn proposed on November 28 the Cabinet appoint Narongchai as a BOT director to replace Somchai Krusuansombat.

"He should not have done this. Many people are disappointed at this double standard," the source asserted.

Pridiyathorn also nominated Fiscal Policy Office director-general Pannee Sathavarodom to replace Naris Chaiyasut.

Anoma Srisukkasem

The Nation