“Somporn-Amorn” confident in their innocence after SEC accuses them of corruption

Bangkok, 'Somporn-Amorn' resign from being directors and executives of EA, confident in their innocence after the SEC accused them of corruption. Mr. Somphote Ahunai, Chief Executive Officer, along with Mr. Amorn Sapphawikul, Deputy Chief Executive Officer of Energy Absolute Public Company Limited (EA), "resigned" from being directors and executives, confident in their integrity, and ready to cooperate with relevant government agencies in the investigation after the Securities and Exchange Commission (SEC) accused them of purchasing equipment from abroad and/or purchasing software programs for use in the construction of solar power plants in Nakhon Sawan and Lampang. Mr. Somporn and Mr. Amorn issued a statement confirming that they did not collude in corruption because the process of hiring contractors was a selection process through the resolution of the board of directors, which was a turnkey project. The construction contract was an Engineering Procurement and Construction Contract (EPC) in which the co ntractor was responsible for designing, purchasing, constructing and installing all systems of the project. The procurement of equipment was the responsibility and decision of the contractor, not the company, Somporn or Amorn. The contractor would receive project details, including a list of equipment to be procured, specifying more than one brand for each equipment and letting the contractor decide to purchase it himself. The specification of the main equipment must be approved by the project's technical advisor appointed by a financial institution, which is an independent global advisor who cannot influence or control it. The project's technical advisor also commented that the construction cost of the project was reasonable when compared to other projects at that time. As can be clearly seen, when the construction cost of the company's project is compared to the construction cost of similar projects of other companies listed on the stock market at the same time, EA's project had the lowest cost and the high est profit efficiency, resulting in the highest return on investment (IRR). However, according to the SEC's accusation, EA's statement stated that it was the beginning of the enforcement process. It did not consider Mr. Somporn and Mr. Amorn as the perpetrators at this time and is ready to cooperate in proving the truth to be evident. Tomorrow, EA will hold a press conference before the Stock Exchange of Thailand opens for trading, announcing the new board of directors, confirming that the fundamentals are strong and the business is stable and has a future. Corruption in EA shares is a new factor that is destroying the confidence of Thai investors. The Thai stock market is facing a serious crisis of confidence from investors, both from the corruption cases in MORE shares or More Return Public Company Limited, STARK shares or Stark Corporation Public Company Limited, and most recently, the fraud in EA shares or Energy Absolute Public Company Limited, which is like the last straw that was placed in the heart s of investors, shattering them along with the erosion of confidence. Meanwhile, the Stock Exchange of Thailand (SET) is trying to find a strong selling point at this time, especially in terms of sustainability of listed companies (listed companies) that must take into account environmental, social and governance issues, which has resulted in listed companies from Thailand being ranked in the DJSI or Dow Jones Sustainability Index, with 12 members, the highest in the world in 2023, surpassing the United States, which has 11 companies. But it seems that these things are becoming meaningless and the question is whether these sustainability are real or just a checklist when fraud and scandals of Thai listed companies bite. EA's last straw destroys credibility Reporters reported that EA's share price had previously reached its highest point of 105 baht in 2021, but due to several concerns about financial statements, the forced sale of shares in a subsidiary, Next Point Public Company Limited (NEX), and the fo rced sale of shares by major shareholder Somporn, the share price dropped until July 12, 2024, leaving only 13.10 baht. It is being watched whether the share price will plummet to the floor when trading opens tomorrow, and whether it will affect EA's plan to sell 2 types of debentures, which have a plan to issue new debentures to replace the original debentures (Roll Over) that will mature at around 5,500 million baht at the end of July. In addition, the EA case also affects the confidence of the capital market because EA has been certified by the Anti-Corruption Commission (CAC), has a 5-star corporate governance score, the highest in the stock market, and in 2023 was ranked as a sustainable stock, or SET ESG Ratings, at AA level. On July 12, 2014, the SEC announced the indictment of three offenders: Mr. Somporn, Mr. Amorn, and Mr. Phonlert Techaratnophas, shareholders of EA, because it was found that the facts and evidence were considered that during 2013-2015, the three individuals jointly committed frau d in the procurement of equipment from abroad and/or fraud in the procurement of software programs for use in the construction project of EA's solar power plant, resulting in the three individuals receiving a total benefit of 3,465.64 million baht. Source: Thai News Agency