BANGKOK — Thailand has elevated the investigation into the collapse of a single high-rise building of the State Audit Office in Bangkok, which was affected by the tremors of an earthquake in Myanmar, has now been officially declared a special case.
On April 2, the Minister of Justice Pol. Col. Thawee Sodsong announced that the Department of Special Investigation (DSI) has recognized the case of the collapse of the SAI office building, which was damaged in the March 28 earthquake, as a special case. The Director-General of the DSI has exercised his authority under the Special Case Investigation Act to classify the case accordingly.
Concerns about bid rigging and the quality of construction, possible key factors in the building’s collapse, will also be addressed. The DSI plans to invite external authorities such as the tax office and the Ministry of Industry to participate in a committee of inquiry due to their technical expertise.
In addition, the investigation will cover 10 other government projects previously awarded to this contractor. The involvement of foreign engineers, some of whom are believed to have entered Thailand on student visas, will also be investigated. Not only China Railway No. 10, but also other companies with joint ventures involving foreign investors are being scrutinized nationwide to determine whether they have characteristics of a nominee.
Thai Shareholders Under Scrutiny
DSI Director-General Police Lt. Col. Yutthana Praedam revealed preliminary findings showing Thai nationals with questionable financial capacity holding shares in major companies involved in the collapsed State Audit Office building.
Evidence suggests foreign nationals may have dominant control over operations through joint venture agreements. The Thai shareholders are also connected to at least three of 13 affiliated companies. Normally, foreign companies investing in Thailand must have a shareholding structure of 51 percent Thai and 49 percent foreign ownership.
Investigations will now examine business registrations, shareholder structures, and past government contract awards for possible bid rigging. The Royal Thai Police is coordinating with DSI on the special investigation.
Investigation Focus on 3 Main Issues
Pol. Lt. Col. Woranan Srilam, spokesman for the DSI, added that the investigation will focus on three main issues:
- Whether there has been a violation of the 1999 Foreign Companies Act through nominee agreements that give foreigners management control;
- Whether the construction materials used did not meet the required Thai Industrial Standards (TIS);
- Whether the procurement practices violated the Act on Offenses Related to the Submission of Bids to Government Agencies, B.E. 2542 (1999), commonly known as bid rigging.
Pol. Lt. Col. Woranan further explained that since joint ventures involve two or more legal entities, the initial investigation will involve the summoning of witnesses and relevant persons. It is therefore necessary to interview all parties involved.
This phase will focus on investigating how the construction contract came about. The purpose of the investigation is to uncover facts in order to determine whether the case meets the legal criteria to be formally classified as a special case under the jurisdiction of the DSI. It does not yet mean that misconduct has been confirmed, nor has it reached the stage where specific perpetrators can be identified.
Chinese Embassy Issues Statement
Earlier, the Chinese Embassy in Bangkok and the construction joint venture responsible for the building have issued statements expressing condolences and addressing their response to the disaster.
The Chinese Embassy stated on April 1 that China has dispatched earthquake rescue expert teams and volunteer rescue teams to Thailand, while also coordinating with Chinese companies to provide heavy equipment for rescue operations. The Embassy emphasized that “the Chinese government has always instructed Chinese companies operating abroad to strictly comply with the laws and regulations of those countries.”
The Embassy pledged continued support based on Thailand’s needs and urged relevant Chinese companies to fully cooperate with the Thai government’s investigation, expressing confidence that the investigation “will lead to scientific and fair conclusions.”
ITD-CREC Asks Public to Await Probe Results
Separately, the ITD-CREC Number 10 Joint Venture—a partnership between Italian-Thai Development PLC and China Railway Number 10 CREC—issued its second statement on April 1, urging the public to await investigation results before making judgments.
The joint venture expressed its intention to provide humanitarian assistance to victims’ families and confirmed it has been actively participating in rescue efforts while cooperating with government agencies investigating the collapse.
“The Joint Venture confirms that the procurement of materials and the construction of the said office building were carried out in accordance with the project’s Terms of Reference, relevant laws, engineering standards, and best engineering practices,” the statement read, adding that all construction materials underwent “rigorous quality checks” before use.
The earthquake-induced collapse has resulted in multiple deaths and injuries. Fifteen deaths found at the site of the collapsed high-rise, according to the Bangkok city authorities. Around 70 workers remain missing.
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