EA shares suspended after CEO and deputy resign amid fraud probe
The Stock Exchange of Thailand (SET) halted trading in shares of renewable energy firm Energy Absolute on Monday after its top two executives stepped down following accusations of fraud.
CEO Somphote Ahunai and deputy CEO Amorn Sapthaweekul resigned on Sunday after the Securities and Exchange Commission (SEC) accused them of participating in procurement fraud worth about 3.5 billion baht.
Energy Absolute (EA) shares have fallen over 60% since mid-April.
The drama comes as the SET is attempting to boost investor confidence after suffering foreign outflows of around US$2.5 billion so far this year.
EA unveiled a new board of directors on Monday, headed by acting CEO Somchainuk Engtrakul and including new faces Chatchaval Jiaravanont, Vasu Klomkliang and Chatphon Sriprathum. It said former Federation of Thai Industries chairman Supant Mongkolsuthree will be proposed as a new board director at the upcoming shareholder meeting.
The SEC has filed cases with the Department of Special Investigation and Anti-Money Laundering Office after finding evidence of fraud in equipment procurement for solar power plants in Nakhon Sawan and Lampang.
Somchainuk said the company had launched an internal investigation, adding that Somphote and Amorn were cooperating with authorities.
EA said debts of 8.7 billion baht due in the third and fourth quarters would be paid with 5 billion baht in revenue from its solar and wind power plants. The debt includes 3.2 billion baht owed to financial institutions and 5.5 billion baht in bonds.
Somchainuk said the company will request permission from the SEC to offer additional bonds.
“I believe that EA has strong business fundamentals to grow further and generate good returns [for investors],” he said.
EA has also unveiled a new executive committee, chaired by Wutthilerd Chiannilkulchai and including Somchainuk, Somboon Ahunai, Jumrud Sawangsamud, Nasis Prasertsakun, Vasu Klomkliang and Chatphon Sriprathum.
