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Bangkok Post
Bangkok Post
National

DSI agrees to look into Stark's finances

Department of Special Investigation director-general Pol Maj Suriya Singhakamol says the department will launch a special probe into Stark Corporation as there is evidence suggesting its executives violated Securities and Exchange Act. (Photo: Department of Special Investigation)

The Department of Special Investigation (DSI) has agreed to investigate Stark Corporation over suspicions of fraud by its former executives, which came to light after the publicly listed wire and cable maker failed to submit its financial statements in time as required by law.

The DSI was petitioned by Stark's acting chief executive, Vonnarat Tangkaravakoon, to investigate the company's financial records, as the company's auditors on Feb 24 detected irregularities in the company's financial statements, which pointed to wrongdoing by Stark's executives and managers.

The Securities and Exchange Commission (SEC) has previously warned that the company is likely to default on five tranches of corporate bonds repayment worth nearly 9.2 billion baht, as Stark's financial statements for 2021 and 2022, which it finally submitted on June 16, showed the company has more liabilities than assets.

As a result, the Stock Exchange of Thailand (SET) said the company faces a possible delisting from the bourse.

The case has dealt a severe blow to investors' confidence in the country's capital market and economic and financial system.

In a press statement released on Thursday, DSI director-general, Pol Maj Suriya Singhakamol, said the department will launch a special probe into Stark Corp, as there is evidence suggesting its executives violated Securities and Exchange Act.

A team of DSI investigators will work with other relevant agencies, including the SEC, and the Royal Thai Police's Economic Crime Suppression Division (ECD), to look into the case.

They will meet on Monday to discuss the issue.

According to a source at the DSI, there is evidence suggesting at least three former Stark executives were involved in the alleged fraud and violation of the Securities and Exchange Act.

The source said the DSI had been informed by the Immigration Bureau that the three suspects did not leave the country through official immigration checkpoints, though it remains unknown as to whether the suspects had escaped the country via natural border passes.

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