Date: July 16, 2024
Thailand’s Energy Absolute appoints acting CEO after fraud accusations
Energy Absolute (EA), a Thai company that makes green energy, put together a new board yesterday . Chairman Somchainuk Engtrakul is now acting CEO after the CEO and his deputy quit because the market regulator accused them of fraud.
The company said in a statement that it was running properly and would be able to pay its debts.
The company got a lot of attention for how quickly it grew as Thailand tried to switch its biggest auto industry in Southeast Asia to electric vehicles. This led Chinese companies wanting to set up EV facilities to invest over US$1.44 billion in the company.
The company said today that Somphote and Amorn quit their jobs to make it easier for a review to be done. Somphote used to trade securities and became a billionaire by riding Thailand’s move to electric vehicles.
Somphote told reporters, “I’m truly sorry that my personal matter has damaged the trust of a good company and its 3,000 employees.” He has denied any wrongdoing.
Somchainuk said that the basics of the company were fine, but that trust had to be rebuilt quickly.
The money that EA owes in the third and fourth quarters can be paid with cash flow, the company said. This includes about 3.2 billion baht owed to banks and 5.5 billion baht in bonds.
An executive vice-president named Vasu Klomkliang said that the Asian Development Bank, the Japan International Cooperation Agency, and Siam Commercial Bank are some of the lenders.
The Stock Exchange of Thailand (SET) said today that EA was removed from the current list of SET ESG scores because the company no longer met the requirements.
Trading in EA shares, which have dropped about 70% this year, stopped today. Shares of Beyond Securities and Next Point, two of EA’s companies, also fell 30%.
Today, SCB shares went down 4%.
Back in 2009, Energy Absolute started out by making biodiesel. Later, they moved on to solar and wind projects to make green energy.
Within a decade, it also added EV charging points, batteries, electric ferries for the Thai capital, and a subsidiary whose only job was to make and sell the cars.
In 2022, Forbes estimated Somphote’s net worth to be $4 billion. He became a symbol for Thailand’s move toward green industries.
In 2020, the Thailand Board of Investment, which is run by the government, said that Somphote was a key figure in moving the country’s auto industry, which is the 11th biggest in the world, toward electric vehicles.
The stock exchange commission charged CEO Somphote Ahunai, his deputy Amorn Sapthaweekul, and a third person with buying fraud from 2013 to 2015, saying the fraud cost the company about 3.5 billion baht (US$97 million).
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 US$4 billion in 2022, as he become a poster boy for Thailand’s transition into green industries.