BANGKOK — Thailand’s Department of Special Investigation (DSI) has discovered that China Railway No. 10 (Thailand), the contractor responsible for the collapsed State Audit Office building, allegedly used three Thai nationals as nominees to conceal foreign ownership since the company’s establishment on August 10, 2018, with a registered capital of 100 million baht ($2.9 million).
This information was revealed during an investigation meeting chaired by Justice Minister Police Colonel Taweesong Sodsong, alongside DSI Director-General Police Major Yutthana Praedam, Deputy Director-General Police Lieutenant Surawut Rangsai, and 36 special case investigators on April 4.
The meeting disclosed the names of Thai shareholders in China Railway: Mr. Sophon Meechai holding 40.7997%, Mr. Prajuab Siriket holding 10.2%, and Mr. Manas Sri-anan holding 0.0003%.
The DSI will summon these individuals for questioning. Investigators also found that the company shares its address with eight other companies in the network, which have collectively secured at least 27 government contracts worth over 10 billion baht ($290 million).
Most recently, special case investigators visited Mr. Prajuab’s residence in Phon Sai district, Roi Et province, but only found his wife. She informed investigators that her husband earns very little, working as a construction laborer with a monthly salary of just over 10,000 baht ($290). Investigators noted this income is inconsistent with his shareholding in multiple legal entities, suggesting nominee arrangements. Authorities are also tracking Mr. Sophon and Mr. Manas.
The Justice Minister stated that the Myanmar earthquake cannot be blamed for the building collapse, noting that Thailand has 320 million rai (126 million acre) of land, yet only the State Audit Office building, situated on approximately 11 rai (3.34 acre), collapsed. Investigators will focus on three areas: witness testimony, documentary evidence, and physical evidence to determine the cause of the deadly collapse.
The DSI Director-General added that beyond nominee violations, they are also investigating potential bid-rigging under the law governing price submissions to government agencies. Investigators must prove whether the Thai shareholders were concealing foreign ownership.
Currently, investigators are mapping the joint venture structure involving China Railway and 11 entities, initially focusing on Italian-Thai Development PCL, which won the bidding for the State Audit Office building construction.
The DSI is prioritizing the nominee case, examining 29 contracts that China Railway secured between 2019-2024, including buildings, transportation routes, and the first phase of the Bangkok-Nakhon Ratchasima high-speed rail project valued at 9,348 million baht ($270 million).
Regarding Xin Ke Yuan Co., Ltd., the DSI Director-General noted they will investigate the company’s supply of steel to the collapsed building, as the Ministry of Industry found some products failed to meet industrial standards. Issues regarding red dust in steel products may involve fake tax invoices and industrial standards violations, which the DSI will pursue in subsequent steps.
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