Thai regulators must speed up investigations of suspected accounting irregularities at Stark Corp. Pcl that’s triggered the nation’s biggest bond default in three years to restore investor confidence, according to Finance Minister Arkhom Termpittayapaisith.
The Securities & Exchange Commission and Stock Exchange of Thailand have been asked to quickly conclude their probe, Arkhom told reporters in Bangkok. Law enforcement agencies must bring charges against all individuals found to be in breach of laws, he said after meeting with officials from the SEC and the stock exchange about Stark on Thursday.
Investors have been hit by a slump in Stark Corp.’s shares that’s seen its market capitalization plummet to about $11 million from this year’s peak of $1.2 billion. The electric cables maker has defaulted on its bonds and a special audit revealed accounting irregularities in the past two years that’s left it with liabilities exceeding assets.
The Stark turmoil has also weighed on the broader market with investor sentiment already weakening over the delay in a pro-democracy coalition’s ability to muster enough support to form a government after last month’s general election. The benchmark SET index is down 9.6% this year, the biggest decliner in Asia, and closed at its lowest level since March 2021 on Thursday.
A quick resolution to the Stark is important “to rebuild investors’ confidence,” Arkhom said late Thursday. The SEC and the exchange were also ordered to improve their supervision of listed companies to quickly detect any irregularities, he said.
The Department of Special Investigation has agreed to investigate allegations of fraud by some of its former executives, Bangkok Post reported, citing Director-General Suriya Singhakamol. There is evidence suggesting Stark’s executives violated Securities and Exchange Act, the newspaper reported.
