DSI calls meeting to discuss SEC auto scam

A source in the department said a joint preliminary investigation by the SEC and DSI showed the case could involve persons implicated in manipulating Picnic Corporation's share price. The DSI would investigate further to determine if the cases are connected, he said.

"Within one to two days, there will be a meeting and representatives from the Office of Attorney-General will also attend. We expect a lot of progress, as our in-depth investigation has been carried out for some time and we have gathered significant evidence. However, we need to proceed with the case in a thorough manner, as it involves several groups of people," he said.

Given the number of victims, the case would be handled in a serious manner, the source said, adding that while SEC Auto Sales and Services (SECC) chairman Sompong Witthayaraksan had fled the country, many of his accomplices are still in Thailand.

The DSI source added that the investigation against SECC started from the day SECC's subsidiary, SEC Holding, joined the bidding for the Natural Gas for Vehicle-driven vehicles and lending programme. It was extended to cover alleged falsification of papers.

Involved persons could also be punished for cheating the public by issuing licence plates with figures that already exist. Moreover, illegal lending was found to have taken place, he said.

"All [cases] affect a large number of people," he said.

The DSI has interrogated some witnesses but the prosecution's case could not be completed without the results of the SEC and SET investigations. Individuals and companies implicated in the case are subject to penalties under the Criminal Code and the Securities and Exchange Act.

On Friday, the SEC froze the assets of all individuals and companies charged with siphoning off assets from SECC and barred involved persons from travelling overseas.

SEC Secretary-General Thirachai Phuvanatnaranubala said this is the first time the agency has exercised its power to freeze assets. The watchdog expects to do so again in future to suppress further wrongdoing, he said.  Subject to the order are Sompong; Nipaporn Khomkla, the company's executive vice president for accounting and finance; Krit Ekmongkolkarn of Apple Group; Apple Group; and QR Auto Car Co. All were implicated in the SEC charges submitted to the DSI on December 26, 2008.

Sompong is alleged to have siphoned off company money through forging auto-purchase documents and pocketing the purchase money for the non-existent cars. According to an initial estimate, this year the company paid Bt597.9 million for the purchase of 197 non-existent cars. Other accomplices were named as having assisted Sompong.