CIB nabs man accused of failing to submit financial statements
The Central Investigation Bureau (CIB) of Thailand has apprehended a man accused of failing to submit financial statements for a public company, in a case that highlights the ongoing issue of financial misconduct in the corporate sector.
Paiwan (surname withheld), 57, was arrested in the Bang Khae district of Bangkok on Saturday, after the issuance of two arrest warrants by the Criminal Court on August 14.
The warrants accuse him of violating the Securities and Exchange Act B.E. 2535 (1992) by failing to prepare and submit financial statements and reports on the company's financial position and operating results within the period specified by the Capital Market Supervisory Board.
The Securities and Exchange Commission (SEC) had filed a complaint against the public company where Paiwan served as an authorised director. Despite the company's ordinary shares being delisted from the stock exchange, it still had more than 1,124 shareholders, obligating it to submit financial statements for 2022 by May 31, 2023.
In a surprising turn of events, Paiwan, who was apprehended while riding a bicycle in a modest neighbourhood, claims to be a victim of identity theft. During preliminary questioning, he denied all allegations, stating that his identification card had been used without his knowledge to list him as a company director.
He asserted that he was merely a construction worker earning 400 baht per day and had never been involved in the company's management.
A police official said, "We urge the public to be vigilant about potential financial misconduct in public companies. Any suspicions of wrongdoing can be reported directly to the Central Investigation Police Headquarters via our website or Facebook page."
This case underscores the challenges faced by regulatory bodies in ensuring compliance with financial reporting requirements and highlights the potential for exploitation of vulnerable individuals in corporate fraud schemes.
The CIB has emphasised that directors of public companies under SEC supervision must adhere strictly to financial reporting obligations or face criminal penalties.
As investigations continue, authorities are seeking Songrit, another director of the company, who is currently at large.
