Thailand’s Group Lease hit by major scandal

Group Lease Public Co. Ltd (GL), the Thai-based motorcycle leasing company, which owns a significant share in Sri Lanka’s Commercial Credit and Finance PLC, was rocked by a scandal this week, with the Thai Securities and Exchange Commission removing GL Chairman and CEO Mitsuji Konoshita from his post over allegations of corporate fraud.

Konoshita was removed from his post by the Thai regulator this Monday and criminal charges were brought against him for concealing transactions, asset misappropriation, permitting false accounting transactions, preparing incorrect accounting records and disseminated false statements, which impacted GL’s share price and investor investment decisions.

GL’s Singapore-based subsidiary, Group Lease Holdings Pte. Ltd, purchased a 29.9 percent stake in Sri Lanka’s Commercial Credit and Finance for Rs.10.56 billion last December, at a 120 percent inflated price.

Konoshita, who represented GL’s interest in Commercial Credit as a Director on Commercial Credit’s board, resigned last month. Upon his resignation, GL Director and CFO Regis Martin was appointed to represent GL’s interests at Commercial Credit and Finance.

GL’s board of directors disclosed to the Stock Exchange of Thailand that it would select a new Chairman and CEO for GL today. GL’s board of directors consists of another individual with the last name Konoshita.

GL’s ultimate owner is A.P.F. Group Co. Ltd based in the British Virgin Islands.