Thonburi Healthcare Group Embroiled in Financial Controversy

Shares in Thonburi Healthcare Group Public Company Limited (THG) have been quiet for a while, but recent news has sparked interest again. The company reported to the stock exchange about its subsidiary’s questionable financial behavior, including giving loans to companies that the “Dr. Boon Wanasin Family” holds most of the shares.

Suspicious Transactions Uncovered

Ms Natthakan Jittinpat, secretary of THG, informed that the company has discovered two subsidiaries: Thonburi Bamrungmuang Hospital Co., Ltd., where the company holds 83.03 percent of the registered capital, and TH Health Co., Ltd., where the company holds 51.22 per cent of the registered capital.

• Provision of loans to Ratchathani Pattanakarn (2014) Company Limited or RTD, a company in which the Wanasin family is a major shareholder, totaling 145 million baht.
• Loan money to Thai Medical Group Company Limited, a company in which RTD is the main shareholder, totaling 10 million baht.
• Orders for products from companies in Singapore, but the goods were not actually delivered, totaling 55 million baht.

Dr. Boon’s Explanation Refuted

Dr. Boon Wanasin, founder and former chairman of the board of THG, explained that the suspicious financial transactions were just a matter of misunderstanding within the organization. However, his explanation was refuted by the company, which clarified that the transactions were carried out by some managers from the subsidiary without complying with the announcement regarding the related transactions of the Securities and Exchange Commission.

Consequences and Investigation

The company has an outstanding debt of doubtful items of about 105 million baht. Dr. Boon has a case pending with the Securities and Exchange Commission (SEC) for the offense of disseminating information that creates a misunderstanding about the results of an operation. The SEC fined him 2.34 million baht, but he refused to pay.

Impact on THG’s Performance

THG’s operating results have continued to slow, with a net profit of 49.20 million baht for the first 6 months of this year, a decrease from the same period last year. The stock price has also continued to fall, closing at 23.25 baht last Friday, September 20.