Energy Absolute’s chairman steps up as CEO amid allegations

Energy Absolute’s board promoted chairman Somchainuk Engtrakul to the roles of director and acting chief executive following allegations of fraud against the former CEO by the stock exchange regulator.

The decision by the EA board took effect immediately on Sunday.

This move came after former CEO Somphote Ahunai and his deputy Amorn Sapthaweekul resigned on Friday. The resignations followed accusations by the Securities and Exchange Commission (SEC) of fraud related to the purchase of equipment and software for a solar power plant.

Additionally, the EA board appointed Chatchaval Jiaravanon, heir to the Charoen Pokphand Group fortune, as a new director. He replaces Wutthilerd Chieannikulchai, who is now the new chairman.

Somchainuk today, July 15, assured that despite the resignations, EA would continue with its business expansion plans and expressed confidence in the company’s potential to generate strong returns.

“The restructuring of the management ensures that the company will be qualified to seek approval for issuing new debentures.”

He also mentioned that EA would be able to repay 3.2 billion baht in debt to financial institutions and 5.5 billion baht to its debenture holders in the latter half of this year.

EA plans to make these repayments using approximately 5 billion baht from the cash flow generated by its solar and wind power plants, along with additional borrowings from financial institutions and planned debenture issues.

Meanwhile, the Stock Exchange of Thailand (SET) announced that EA had been removed from the SET ESG Ratings due to the accusations against the company, reported Bangkok Post.

In related news, US equity funds attract record inflows amid Thai market decline, US equity funds have seen the largest inflows this year, spurred by the US economic recovery and expectations of interest rate cuts, while mutual fund investments in Thai stocks have dropped by nearly 10 billion baht, according to Morningstar Research (Thailand).