BANGKOK — A Chinese executive from China Railway (Thailand) has been released on 500,000 baht bail with travel restrictions after being charged by the Department of Special Investigation (DSI) in a nominee case.
The case involves the collapse of the State Audit Office building in Bangkok, which was the only building to collapse during the March 28 earthquake that originated in Myanmar. The disaster resulted in 103 casualties, with only 9 survivors.
On April 21, DSI investigators brought 42-year-old Chinese national Mr. Zhang Chuanling to the Criminal Court on Ratchadaphisek Road in Bangkok for the first detention request. He was arrested at a hotel in the Ratchada area on April 19 and informed of the charges.
An Investor from China
Zhang denied the charges, stating he hadn’t appointed anyone as a nominee shareholder. He explained that he represents a Chinese state enterprise and is an investor from China making investments in Thailand on behalf of the Chinese government. He claimed to be merely an executive sent to manage the company’s operations in Thailand.
He affirmed that the Chinese state enterprise has approved approximately 120 million baht ($3.6 million) in compensation for victims and those affected by the State Audit Office building collapse, and is currently coordinating with the Ministry of Justice to deliver these funds.
The suspect posted 500,000 baht bail, which the court granted with the condition that he cannot leave the country without court permission and must report as scheduled.
Details of the Petition
The petition stated that the DSI received a case regarding a joint venture that bid on the State Audit Office building construction project, potentially violating the Foreign Business Act and possibly being involved in government procurement fraud.
Investigations revealed that the company responsible for constructing the building was a joint venture between Italian-Thai Development Public Company Limited (ITD) and China Railway No. 10 (Thailand) Co., Ltd., operating as ITD-CREC. China Railway was registered on August 10, 2018, with a registered capital of 100 million baht (1 million shares at 100 baht each), with Thai shareholders holding 51% and Chinese nationals 49%. ITD-CREC has 4 shareholders:
- China Railway No. 10 Engineering Company (Chinese nationality): 490,000 shares (49%), valued at 49 million baht, with Zhang (Chinese) and Mr. Sophon Meechai (Thai) as authorized directors
- Mr. Sophon Meechai (66, Thai): 407,997 shares (40.7997%), valued at 40,799,700 baht, also holding shares in 4 other companies
- Mr. Prajuab Sirikhet (53, Thai): 102,000 shares (10.20%), valued at 10,200,000 baht, also holding shares in 7 other companies
- Mr. Manat Sri-anan (62, Thai): 3 shares (0.003%), valued at 300 baht, also holding shares in 10 other companies
Suspicious Thai Partners
Further investigation into the three Thai directors revealed that Mr. Sophon previously worked at Thai Glass Industries Co., Ltd., resigning on September 9, 2014, with no subsequent employment records. Mr. Prajuab and Mr. Manat worked at Santiphap Import-Export Co., Ltd., with Mr. Prajuab resigning on September 1, 2010, and Mr. Manat on March 31, 2015.
Santiphap Import-Export is located at 493 Soi Phutthabucha 44, Lane 11, Bang Mot, Thung Khru, Bangkok – the same address as China Railway and eight other companies. All three Thai directors of China Railway also serve as directors of these companies.
Investigations found that Sophon, Prajuab, and Manat were employees of Chinese-owned companies, working as manual laborers and drivers. It is not credible that these three individuals are shareholders in any business, given their employment as hired workers with low incomes.
They are suspected of being registered as nominal shareholders holding 51% to make China Railway appear to be a Thai company, allowing it to engage in businesses restricted by law, including bidding for the construction of the new State Audit Office building through e-bidding. Construction began in 2020 and continued until the building collapsed on March 28, 2025.
Thai Shareholders Surrender
On the same day, the three Thai directors and shareholders – Sophon, Prajuab, and Manat – surrendered at the DSI Deputy Director-General’s Office on Chaengwattana Road, Bangkok. Manat’s lawyer submitted clarification documents to investigators, briefly confirming that all three were genuine shareholders and denying the allegations against them.
SKY Is a Social Scapegoat?
Meanwhile, the Thai legal team for Sin Ke Yuan Steel Co., Ltd. (SKY) held a press conference at Rama Gardens Hotel, claiming the company has become a social scapegoat. They stated that the collection of steel samples from the collapsed building by Thai authorities and the subsequent announcement that the steel was substandard was unjustified, as the steel had already been used and was outside the scope of laboratory testing, making it impossible to measure against industry standards.
SKY insists their steel products meet ISO 9001 standards as required by law and the Board of Investment (BOI). They objected to implications that SKY is a Chinese “grey” company, noting that over the past five years (2019-2023), the company has paid 856 million baht in taxes with proper accounting.
Foreign Investment Impact
“While the Thai government invites foreign investment, the order to close the factory and revoke the investment license affects the investment climate. Whether SKY will withdraw all investments from Thailand is up to the company’s decision and cannot be answered by the legal team,” said lawyer Surasak Weerakul.
As of April 20 at 6:00 PM, according to the search and rescue team at the State Audit Office building site, there were 103 casualties, with 47 deaths, 9 injuries, and 47 people still trapped under the rubble.
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