Mr. Pitsanuporn Uthakaphan, Chief Executive Officer of K-HA Public Company Limited (K-HA) addressed the allegations made against him during the no-confidence debate regarding the performance of CEMCO, the asset and community management company, and its dealings with the National Housing Authority (NHA). He clarified that, as per the Office of the Auditor General's request to investigate potential conflicts of interest in CEMCO, the company found that two board members appointed between 2015 and 2016 lacked the qualifications to serve due to a conflict with the company's regulations prohibiting board members from engaging in businesses similar to that of the company.

CEMCO was established in 1995 as a subsidiary of the National Housing Authority, which holds a 49% stake with a registered capital of 20 million baht. Its main mission is to manage communities on behalf of the NHA, with objectives including: 1. Managing legal entities for housing estates, condominiums, and rental buildings; 2. Improving the quality of life for community members and making communities more livable; and 3. Carrying out other tasks assigned by the NHA.

Mr. Uthakaphan took on the role of managing director in 2017 when the company had accumulated losses of 13.4 million baht at the end of 2017, with shareholder equity at only 6.85 million baht. However, through transparent management and support from the board and NHA, by the end of 2021, the company reported a pre-tax profit of 18.4 million baht and accumulated profits of 2.55 million baht, with shareholder equity at 22.8 million baht (with a registered capital of 20 million baht).

K-HA Public Company was established following the NHA's approval from the Cabinet on November 9, 2021, to facilitate the K-HA housing project more efficiently and successfully. The NHA holds a 49% stake while strong and professional partners hold 51%, aiming to create 100,000 units within five years from 2021 to 2025, with an annual target of 20,000 units and a registered capital of 500 million baht, along with a well-vetted board of directors.

The K-HA Rental Housing with Employment Project will raise funds from private investors in the market to finance the project for the NHA without using government budget funds. This initiative is not profit-driven like typical private real estate projects but is a semi-social project aimed at assisting all segments of the population in need of housing.

Looking ahead, there are plans to enter the stock market, as there is a clear process for transparency and auditing. The goal of entering the stock market is not for speculation but to raise funds to create housing for low-income individuals while also generating employment opportunities for tenants in the project. This project is akin to a semi-social initiative, and in response to claims that it may take over 200 years to break even, I confirm that this is not true. We anticipate that we can break even in about 10 years. The project will include areas for private businesses to rent, creating jobs for community members while also allowing the project to collect rental fees from private businesses.

“What has changed is the way we work and think, shifting from profit-driven commercial practices to returning benefits to society. We are transitioning from selling homes to offering affordable rentals for low-income individuals starting at 1,500 to 3,000 baht, depending on size, allowing residents to stay for life. This is not just about building houses; it’s about creating homes while promoting employment to enhance quality of life, which is a new initiative for the country,” Mr. Pitsanuporn concluded.