Today's SEC board meeting will be chaired by Deputy Prime Minister and Finance Minister MR Pridiyathorn Devakula.

Chalee Chantanayingyong, SEC senior assistant secretary-general, said yesterday that the issue of Krung Thai Bank's loan to Golden Technology for purchase of KMC stocks has just been added to the agenda because Pridiyathorn, the SEC chairman, wanted to discuss the issue today.

He said the SEC is expected to ask for more information from the Bank of Thailand. The SEC would then consider whether there is anything in KTB's lending to Golden Technology Industrial Park that violates the Securities and Exchange Act.

Chalee said the discussions would also include whether the lending involves stock manipulation, and whether the father of a politician who used Bt150 million from KTB's loan has acquired KMC stock without reporting to the SEC.

The Assets Examination Committee (AEC) has been investigating KTB's lending of Bt9.9 billion to the Golden Technology Industrial Park.

The BOT earlier found that there was a misuse of the loan that led to damages worth around Bt3.5 billion. From initial evidence, the central bank found that the company had used almost Bt200 million of the loan to pay persons related to politicians. Around Bt26 million of the Bt200-million portion was paid by cheque to the son of a politician but later cancelled. Around Bt150 million was also paid in cheque to the father of a politician, who later used the money to buy KMC stocks attached with warrants that can be exercised to buy up to 10 million shares of KMC stock.

The SEC will have to investigate whether the KMC stock purchase by this person is against Article 59 of the Securities and Exchange Act BE2535 that requires directors and management to disclose stock possession as well as any change of stockholding including those shares owned by their family.