SEC to appeal over Picnic acquittal
The Securities and Exchange Commission (SEC) will appeal against the Bangkok South Criminal Court's decision to dismiss the accounting-fraud case against Picnic Corp and its former executives within 30 days.
The court yesterday dismissed the case on grounds of insufficient evidence. "Actually, the case does have sufficient evidence and we are going to explain how [manipulative] techniques have been used to dress up the accounting records. There are many details," insisted SEC secretary-general Thirachai Phuvanatnaranubala. The Department of Special Investigation (DSI), which prepared the investigative report, also vowed to review the report in detail in a bid to improve any weak points. Picnic Corporation and its former executives - including Theeratchanon Lapvisuthisin and Supaporn Lapvisuthisin - had been accused of accounting fraud and dishonest management. Theeratchanon and Supaporn were younger siblings of Suriya Lapvisuthisin, who once served as a deputy commerce minister during the Thaksin government. The SEC said that Picnic Corporation had dressed up its accounting records between April 1 and September 1, 2004 to shows its income Bt400 million higher than it actually was. The higher income came from 10 contracts involving the lease of gas cylinders by Picnic Corporation to 10 gas-filling factories. Prosecutor witnesses, all involved in the gas trade, said they had never seen any other operators leasing gas cylinders. However, the court said the Revenue Department had said the lease did not break any law and also found the defendants' evidence solid enough to rebut charges that they were engaged in dishonest management. After hearing the court decision, Theeratchanon said his business practice was new and was mistaken as an effort to inflate Picnic Corporation's stock price. "It's a misunderstanding," he said. DSI acting director-general Kraisorn Baramee-uaychai said he would establish a team to look into the evidence prepared for the case. He also said this case would serve as a lesson for the DSI to prepare the investigative report and evidence carefully before forwarding the case to court. Justice Ministry's permanent secretary Jaral Phakdeethanakul said he planned to look into the details of all investigative reports that the DSI had concluded. "I don't want other cases to end up like the Picnic Corporation case," he said.
|
