Business
Thailand’s SEC Accuses 2 Senior Finance Ministry Officials of Insider Trading
The directors-general of the Treasury and Comptroller-General departments in Thailand are accused of engaging in insider trading, a breach of the Finance Ministry’s code of conduct, in connection with the purchase and sale of Bangchak Company shares.
The Securities and Exchange Commission (SEC) highlighted concerns about the purchase and sale of Bangchak shares by Chamroen Phothiyod, director-general of the Treasury Department, and Kulaya Tantitemit, director-general of the Comptroller-General Department, in a report to the Finance Ministry.
Both Chamroen and Kulaya are members of Bangchak’s board of directors, representing the Finance Ministry, and were purportedly privy to details of negotiations between Bangchak Corporation and Exxon Mobile to buy interests in Esso (Thailand) Public Company, an Exxon Mobile subsidiary.
According to the SEC investigation, Chamroen purchased 600,000 shares of Bangchak Corporation between December and January of last year, 200,000 at 31 baht apiece, 100,000 at 30.75 baht on December 22nd, and another 300,000 at 28.14 baht on December 26th.
Chamroen sold 150,000 shares for 34.75 baht each on January 12th. Meanwhile, on December 28th, Kulaya purchased 300,000 shares for 28.14 baht.
The SEC found that the two general directors bought and sold Bangchak shares while the firm was in the process of obtaining a stake in Esso (Thailand), and that the two directors may have had access to inside information, which could have violated the Finance Ministry’s ethical code.
According to an informed source, the Finance Ministry has acknowledged the SEC’s report and will consider how to proceed with the matter.
Meanwhile, Chamroen told the media that he was offered 300,000 Bangchak shares as a board member, and that he later bought another 300,000 and sold 150,000. He insisted on informing both the Finance Ministry and the SEC about the purchase and selling of the shares.
Chamroen stated that he is not generally interested in share trading, and that when he received the shares as a board member, he quickly sold some of them. He insisted on not engaging in insider trading.
Nevertheless, Kulaya stated that she, like other corporate employees, was offered shares by Bangchak, and that the company had allocated 18 million shares to its workers and board.
She purchased 300,000 shares that were offered to her with no intention of engaging in share trading and instructed a securities firm to sell them all.
She stated that she had no Bangchak shares in her portfolio and that she notified the share purchase and sale to the Finance Ministry, adding that she resigned as a Bangchak board member on January 1st.
Thailand’s DSI Investigates Lottery Bank Accounts
Meanwhile, the Department of Special Investigation in Thailand has summoned a business colleague of Kong Salak Plus Lottery CEO, Mr. Panthawat Nakvisut for interrogation in connection with about 100 million baht (US$2.9 Million) discovered a bank account.
According to a DSI official, they examined Panthawat’s eight confiscated bank books and discovered that some of the transactions were linked to his business associate, Mr. Tantai Narongkoon.
According to the Anti-Money Laundering Office, the cash were deposited in Mr. Panthawat’s bank account at the Government Savings Bank before being transferred to Tantai’s account.
The two men have long been business partners in lottery distribution activities, and the DSI suspects Mr. Panthawat transferred the 100 million baht to Tantai to disguise its source.
According to DSI officers, no money has ever been sent from Tantai to Panthawat’s bank account, therefore the necessity to interview Tantai.
