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Finance Minister Surapong Suebwonglee said yesterday the Finance Ministry would set up a committee to investigate whether the Financial Institutions Development Fund (FIDF), an arm of the Bank of Thailand tasked with rescuing financial institutions, correctly handled the recapitalisation of BankThai.

Surapong said that the Finance Ministry has to look into BankThai's recapitalisation because the ministry would be responsible for the bank's financial burden. But some question whether the finance minister is driven by a political motive, as he has brought up the issue at a time when speculation has arisen over the government's plan to remove Bank of Thailand Governor Tarisa Watanagase.

Why has the investigation commenced only now, when the capital injection took place in January? Besides, the Finance Ministry should have been informed of the capital increase all along because the FIDF board also includes finance officials who are supposed to keep the minister updated on the process.

The issue came up as changes at the Bank of Thailand are expected under the newly amended Bank of Thailand Act. Tarisa was seen as a "tough-minded" central bank governor who has made monetary stability her top priority. Her agenda at times was seen as running against the pro-growth agenda of the government. Besides, the BankThai issue could discredit not only Tarisa, but also former central bank governor MR Pridiyathorn Devakula, who handpicked Tarisa to replace him.

An attempt to politicise BankThai didn't just happen. Earlier, Prime Minister Samak Sundaravej unnecessarily disrupted financial markets when he mentioned in his radio programme that certain banks under the Bank of Thailand's supervision were on the verge of collapse. Samak later had to backtrack on his comment. Nonetheless, there were doubts on the motive behind the statements made by Samak, who is not known to be a financial expert.

Now, Surapong has taken up the issue again while the FIDF has put BankThai up for sale. The FIDF is in a process of selling its 42.1 per cent stake in BankThai and is negotiating with potential buyers including several foreign banks.

Thus, the controversy has arisen at an inopportune  time as it could dampen the price that the Bank of Thailand or the government should be able to fetch from selling its stake in BankThai. The finance minister's expressed concerns over the status of BankThai could adversely affect the government's ability to negotiate a good price for the bank.

Therefore, Surapong must ensure that the committee performs its duty effectively without any political agenda. If the committee is seen as having acted based on political interference, the credibility of its findings would certainly be affected.

To stave off any allegation over a double standard, Surapong may also take this opportunity to set up a committee to investigate the financial problems at TMB Bank, which is under the direct supervision of the Finance Ministry.