Damage from scandal likely to hit B100bn
The Department of Special Investigations has seized over 100 million baht’s worth of assets from the publicly-listed wire and cable manufacturer, Stark Corp.
This comes amid reports that damage caused by alleged fraud by its former executives could reach 100 billion baht.
DSI director-general Suriya Singhakamol said the DSI is still looking for more assets to seize, as the damages bill will likely increase.
The DSI took up the case following reports of irregularities in Stark’s financial statements.
The DSI has called many people in for questioning and should be able to name the suspects in two weeks, Pol Maj Suriya said.
Those called for questioning included people who were involved in preparing Stark’s financial statements, as well as those looking after audits and procurements.
Chanin Yensudchai, a former Stark CEO, was among them, the DSI director-general said.
He urged those who have been affected by the case to file their complaints via the DSI’s 1202 hotline.
Previously, the Securities and Exchange Commission (SEC) warned those involved in the Stark fraud case could face up to 10 years in prison if found guilty.
Many corporate bondholders have been affected as Stark looks set to default on paying nearly 9.2 billion baht in obligations. Stark’s share prices have also collapsed as the company’s market capitalisation plunged.
As of midday yesterday, Stark shares traded at 0.02 baht per share, compared to 2.44 baht per share on Jan 3.
According to the SEC, Deloitte Touche Tohmatsu Jaiyos Co, which audited Stark’s statements for 2021, reported that the company had made a profit of 2.79 billion baht.
But PricewaterhouseCoopers ABAS later conducted a special audit which found the company had net losses of 5.98 billion baht for the year, as well as a 6.65-billion-baht loss in 2022.
In addition, the special audit also found 202 unusual transactions, totalling 8.06 billion baht and 3.89 billion baht in 2021 and 2022, respectively.