SEC explains investigation since 2016 into ‘Somporn-Amorn’ corruption case

Bangkok, SEC clarifies that it has been investigating since 2016 the case of accusing "Somporn-Amorn" of corruption in EA, resulting in the disqualification of being a director and executive of a listed company or securities company. EA has called an urgent meeting today to prepare for clarification tomorrow. The Securities and Exchange Commission (SEC) clarified the case on July 12, 2024, accusing Mr. Somporn Ahunai and Mr. Amorn Traiphuwikul, directors and executives of EA and subsidiaries in which EA holds 99.99 percent of shares (namely EA Solar Nakhon Sawan Co., Ltd. and EA Solar Lampang Co., Ltd.), as well as Mr. Phonlert Techaratanopas, to the Department of Special Investigation (DSI) for jointly committing fraud to seek undue benefits for themselves and/or others, causing damage to EA and its subsidiaries. It was found that during 2013-2015, the three individuals colluded to commit fraud in the procurement of equipment from abroad and/or fraud in the procurement of software programs for use in EA's solar power plant construction project through the two subsidiaries, resulting in the three individuals receiving a total of 3,465.64 million baht in benefits. The SEC received the complaint in late 2016 and submitted some related evidence. It has raised several issues to investigate, which are interrelated to several sections, are complicated to investigate, and have a lot of information to consider in each issue. In addition, according to the law enforcement process, the SEC has given the suspects time and opportunity to fully clarify their cases for fairness, both in cases of summoning them for questioning and providing written statements. However, the SEC has coordinated with several foreign regulatory agencies and has received good cooperation. The SEC has investigated the information through SEC agencies in several countries and found that the three individuals were indeed guilty. Therefore, they have filed charges and forwarded the case to the Anti-Money Laundering Office. The investigation found tha t the offenses occurred between 2013 and 2015 continuously. In this case, it is an offense under Section 311 of the Securities and Exchange Act B.E. 2535, which is a criminal offense. Therefore, civil punishment measures cannot be applied (Section 311 and Section 281/2, paragraph two, are not included in Section 317/1). The statute of limitations is 15 years and will expire in 2030 (since 2015). As for the offenses under Section 281/2, paragraph two, in conjunction with Sections 89/7 and 89/24, the statute of limitations is 10 years and will expire in 2025 (since 2015). In the case where the offender is a director/executive of a listed company with securities listed on the Stock Exchange, there is a penalty under Section 313, which is imprisonment of 5-10 years and a fine of twice the price of the property or benefits that the person has committed the violation. In the case where the offender is an accomplice, there is a penalty under Section 311 according to Section 315. There is no penalty under Section 31 3 because he/she is not a director/executive of a listed company according to the Securities Act. However, such accusation results in the accused being classified as lacking trustworthiness in being a director and executive of a company issuing securities and a listed company. Therefore, he/she cannot be a director and executive of a company with listed securities from the date of the accusation until the entire period of the accusation. For the procedure after the SEC accuses the perpetrator to the investigator, the investigator will investigate, collect facts and evidence, and present an opinion on the case to the public prosecutor. The public prosecutor will consider the completeness of the investigation report of the investigator before giving an opinion to indict or not to indict the accused according to the investigation report. In the case where the public prosecutor has filed a lawsuit against the accused as a defendant, the court of justice will consider and give a verdict. It was reported that to day (July 14), EA called an urgent meeting to prepare a statement document explaining the SEC's accusations for release tomorrow (July 15). In addition, it is preparing funds to support debentures and short-term bills of exchange that will soon be due for payment. EA has debentures due on August 15 worth 1.5 billion baht and another 4 billion baht due on September 29. Short-term bills of exchange will gradually mature within this year worth 1.3 billion baht. The company has a total outstanding long-term debt instrument of 31.166 billion baht and a total outstanding short-term debt instrument of 1.5 billion baht. EA is currently preparing to offer 2 sets of debentures between 23-25 ??July 2024, divided into Set 1 with a 1-year term, due in 2025, with an interest rate of 4.70% per year, and Set 2 with a 3-year term, due in 2027, with an interest rate of 5.50% per year, with TRIS rating the organization and debentures at BBB+ to repay the debentures that are due. Source: Thai News Agency