TTA confident execs will be exonerated
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Thoresen Thai Agencies yesterday said it was confident that its senior management, led by president ML Chandchutha Chandratat, would not be hit by any charges by the Department of Special Investigation (DSI).
Chandchutha and chief financial officer Thitima Rungkwansiriroj were reportedly facing charges over their actions deemed to be above the scope of their responsibility, and document falsification. The allegation was based on the DSI’s probe into TTA’s takeover of UMS Co late last year.
All of TTA’s investment decisions are made only after a great deal of due diligence has been completed, a process that is undertaken internally, and with prudent expert opinions and specialised and experienced outside advisers, and in line with established processes and regulations, the company said in a statement released by its legal adviser, Baker & McKenzie.
“TTA remains confident that, based on evidence within its possession, all accusations against its senior management team will be proven to be without merit,” it said in the statement. “In this particular instance, following the presentation of such detailed information to the TTA Board, the TTA Board approved the investment in UMS.”
According to a source, the DSI concluded that the action caused damage of Bt1.43 billion to the company, and forwarded the case to the Office of the Attorney-General.
In the statement, TTA said that it will cooperate fully should the office require further information.
The accusation was based mainly on Chandchutha’s decision to buy shares and warrants of UMS Co Ltd before receiving approval from TTA’s board of directors and shareholders. Chandchutha and executive vice president Thitima Rungkwansiriroj were also accused of falsifying UMS’ financial results to convince the board and shareholders of better-than-expected performance.
The source, who spoke on condition of anonymity, said that the DSI started its investigation in November and found that UMS’ share price spiked from Bt13 to Bt23 before announcement of TTA’s takeover.
Last October, TTA announced the plan to buy shares and warrants of UMS for Bt4 billion.
The source added that DSI found that after the announcement, UMS’s share price plunged to Bt14.10 in January. Meanwhile, against net profit of Bt403 million in 2008, UMS reported net profit of only Bt88.3 million, Bt71.2 million and Bt60.5 million, respectively in 2009 through 2011.
Chandchutha could be charged with violating the Securities and Exchange Act BE2535 for violating Articles 307, 309, 311 and 313, the source added.
