Circuit Electronic Industry Plc (Cirkit) and Thai Wire Products Plc (TWP) said Siva Nganthavee, chief executive and chairman of Cirkit and a director of TWP; Watjana Bhukaswan, vice chairman of Cirkit and a director of TWP; Sukit Nganthavee, a director of both Cirkit and TWP; Lee Wolff, managing director of Cirkit; and Somboon Kritcharnchai, deputy managing director of Cirkit, had done nothing wrong.

On Wednesday, the Securities and Exchange Commission (SEC) filed criminal complaints of embezzlement with the Department of Special Investigation against the five Cirkit executives. They are accused of breaching sections 303, 311 and 313 of the Securities and Exchange Act.

The SEC said a foreign debtor that supposedly failed to settle Bt3.44 billion in debts to Cirkit between 2003 and 2005, does not exist. In addition, the SEC said, there was evidence that the five executives took part in other irregularities, as they were associated with the establishment of a company set up to collect money from Cirkit's customers.

Given its failure to collect the Bt3.44 billion in debts, the company had to set up a massive debt-loss reserve, the SEC said. This is blamed for the company's bankruptcy last year, with liabilities Bt835 million higher than its assets and retained losses amounting to Bt2.66 billion.

"We would like to inform that the directors and the executive management acknowledge the accusation and confirm that they have never done, nor allowed, nor had the intention to prepare fraudulent documents, and never embezzled the money that customers paid to the company," a Cirkit official, Varaporn Phakpong, reported to the Stock Exchange of Thailand (SET) yesterday.

However, Cirkit will consider promptly appointing new directors and executive managers to avoid any affects on the company.

TWP supported Cirkit's statement by reporting to the stock exchange that the three accused who were directors of TWP, as well as executives and directors of Cirkit, had done nothing wrong.

"The three directors have confirmed to the company that they did not do what they have been accused of," said Chatchai Siriwatana, a director of TWP. "Presently, they are in the process of verifying their innocence. There is no conclusion on this matter now."

TWP said the company was under rehabilitation and the accomplishment of its rehabilitation plan depended on the management of the three accused directors. In addition, the case has neither dealt with, nor had any effects on, TWP's business.

Chatchai said the company could not allow the three directors to resign because to do so would risk a future impact on its business.

The SET yesterday halted trading in TWP's shares out of concern that the case may influence investors, and it instructed Cirkit to clarify the situation with additional information. It said that when TWP provided additional information regarding its three directors, trading in its stock would be allowed to resume.

Also related to the case, Southern Concrete Pile Plc yesterday informed the SET that any action taken by Sukit Nganthavee, who is also one of its directors, had not affected Southern Concrete Pile's work performance or business. It explained that although Sukit is a member of its board of directors, he had not dealt with any decision-making related to the company's financial statements.

Sukit has resigned as a director of Southern Concrete Pile, effective today, the company said.