0569a7f4-f0e5-4f06-bf78-e5b11bbb689b.pdf

TCAP.CSO.035/2016

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............ Thanachart


TCAP. CSO. 035/2016


Date 7 March 2016


Subject :The News that the Office of the Welfare Promotion Commission for Teachers and Educational Personnel will file a civil law suit against Thanachart Bank Public Company Limited.


To The President


The Stock Exchange of Thailand


There was a report in the mass media today that the Secretary-General of the Office of the Welfare Promotion Commission for Teachers and Educational Personnel ("OTEP") will file a civil law suit against Thanachart Bank Public Company Limited ("the Bank") demanding the refund of 2,100 million baht with interest at 7.5 percent per annum. The law suit will allege that the withdrawal of funds on deposit at the Bank and the subsequent closing of the account on 27 December 2013, were improperly done.

Thanachart Capital Public Company Limited ("the Company") advises that the Bank (which is a subsidiary of the Company), has responded to the OTEP allegations on 3 occasions in writing (on 7 January 2016, 28 January 2016, and 23 February 2016) advising the conclusions of the investigation and has also provided documentary evidence in support of the Bank's position that it has acted properly in all of its dealings with the OTEP account. A meeting was also held to discuss the allegations. A partial summary of the information presented in support of the Bank's position is as follows:

  1. The Withdrawal Slip and BAHTNET Slip Forms have been co-signed by two authorized persons in accordance with the terms as prescribed by OTEP, the Passbook was presented and the transaction recorded therein, and the authorized persons have duly signed to receive 2, 100 million baht from the Bank. This is in full compliance with the Bank Regulations regarding the withdrawal and transfer of funds.

  2. The withdrawal and the transfer of funds have been done in accordance with the intention and purpose of the resolution of the Board. The employee of the Bank has no right or obligation to challenge such resolution.

  3. The letter of OTEP to notify the Bank of the intention of closing the account as signed by the Deputy Secretary-General (acting for the Secretary-General), is alleged to be an invalid letter signed by an unauthorized person and is further alleged not to be in accordance with the conditions for closing of

    USIJn QU5UUla 11na (Ut'ilUU)

    Thanachart Capital Public Company Limited


    44 4'el1fl1n'ill-JULl'l Yl11rnlf -B°'W 16-17!;l.!.!Ymn1YI LL'll1'1'rn.J L'lllilUYll-J'l'W nNLYIYi'1 10330

    444 MBK Tower, 16'h·17'" Floor, Phayathai Rad, Wangmai, Pathur'nwan, Bangkok 10330 THAILAND

    Tel: (662) 217-8444, 217-8000, 611-9111 Fax: (662) 613-6099 www thanachart co th 1,uuu,R 0101536000510


    H-01-047-1

    TCAP CSO.035i2016


    accounts and withdrawal. Such letter is not the document required under the Bank Regulations for the withdrawal of funds and closing of the account.

  4. OTEP has known that the approval of the investment to purchase the Promissory Note of a private company in the amount of 2,100 million baht, at the interest of 7 percent per annum, was done in accordance with the resolution of the Board in all respects. Further, the interest under the Promissory Note had been received in full. Only when the principle due was not paid at maturity, was the Bank asked to take responsibility by referring to the letter duly signed by Deputy Secretary-General of OTEP to notify the intention of closing account as stated above, and alleging that the commercial bank had acted carelessly. This action was unfair and causes damage to the Bank.

The Company would like to further inform that in this case the withdrawal transaction was done on 27 December 2013, that OTEP and its responsible executives have had full knowledge of the transaction, and that they have never raised any issue with this withdrawal previously. Furthermore, during the investigation of the facts by the Bank, the Bank has learned that the matter has been previously audited and investigated by the Transaction Committee of Anti-Money Laundering Office. The Bank then notified the Chief Ombudsman of this finding and requested a further investigation of related facts and documentary evidences. Additionally, the Bank asked for the consideration of the Chief Ombudsman to review its previous opinion as duly presented to the Ministry of Education, as it was common knowledge in various media that the action of OTEP in this case was based on the opinion of the Ombudsman.

As the actions of the employees of the Bank have been proper in all respects, and carried out in full compliance with the Bank Regulations, the Company wishes to inform you accordingly and kindly request to disclose this news.


Yours Faithfully,


Thanachart Capital Public Company Limited


-Somjate Moosirilert - (Mr. Somjate Moosirilert)

Senior Executive Vice President


Corporate Secretary Office


Tel: 0-2217-8000 ext. 3008-3012


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Thanachart Capital pcl issued this content on 07 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 07 March 2016 13:18:13 UTC

Original Document: http://tcap.listedcompany.com/news.html/id/514978