BANGKOK (Reuters) -Thai renewable energy firm Energy Absolute (EA) appointed a new board on Monday, with chairman Somchainuk Engtrakul as acting chief executive, after the CEO and his deputy resigned over fraud accusations by the market regulator.
In a statement, the company said it was operating normally and could meet its debt obligations.
The firm drew attention for its rapid expansion as Thailand looked to pivot its auto industry, the largest in Southeast Asia, to electric vehicles, drawing new investment of over $1.44 billion from Chinese firms looking to set up EV facilities.
On Friday, the Securities and Exchange Commission accused CEO Somphote Ahunai, his deputy Amorn Sapthaweekul, and a third person of procurement fraud from 2013 to 2015, bringing them benefits of about 3.5 billion baht ($97 million).
Somphote, a former securities trader who rode Thailand’s EV transition to become a billionaire, and Amorn resigned from their positions to facilitate an investigation, the company said on Monday.
“I really apologise that my personal matter has hurt the confidence of a good company and its 3,000 employees,” Somphote, who has denied any wrongdoing, told reporters.
Somchainuk said there were no problems with the company’s fundamentals, but confidence needed to be restored quickly.
EA’s debts due in the third and fourth quarters, including about 3.2 billion baht owed to financial institutions and 5.5 billion baht of bonds, can be paid with cash flow, the firm said.
Creditors include Siam Commercial Bank, the Asian Development Bank and the Japan International Cooperation Agency, said Vasu Klomkliang, an executive vice president.
On Monday, the Stock Exchange of Thailand (SET) said it had dropped EA from the current SET ESG ratings list as the firm no longer met the criteria.
Trading in EA shares, which have slumped by about 70% this year, was halted on Monday, with shares of its subsidiaries, Beyond Securities and Next Point, falling 30%.
SCB shares lost 4% on Monday.
Energy Absolute started with biodiesel production in 2009, before moving into the area of renewable energy generation with solar and wind projects.
Within a decade, it also expanded into EV charging stations, batteries, electric ferries for the Thai capital and a dedicated subsidiary to make and distribute the vehicles.
Forbes put Somphote’s net worth at $4 billion in 2022, as he become a poster boy for Thailand’s transition into green industries.
Somphote was a key figure in steering the domestic auto industry, the world’s 11th largest, towards EVs, the state-run Thailand Board of Investment said in a 2020 statement.
($1=36.19 baht)
(Reporting by Orathai Sriring, Devjyot Ghoshal, Kitiphong Thaichareon and Thanadech Staporncharnchai; Editing by John Mair and Clarence Fernandez)
