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CNA
30-04-2025
- Business
- CNA
Thai officials urge speedier investigation of quake-hit Bangkok tower's collapse
BANGKOK: A month after an unfinished 30-storey skyscraper toppled following a 7.7-magnitude earthquake in neighbouring Myanmar, investigations into the cause of the collapse are still ongoing. The building, which was supposed to house the new headquarters of Thailand's State Audit Office (SAO) in the north of Bangkok, crumbled in seconds on March 28, burying 103 workers on site. Thai officials have been working round the clock for the past month, using heavy machinery to dig into the mountain of rubble. At least 63 bodies have been found and the rest are unaccounted for, feared still buried under the debris. The disaster zone has also become a crime scene as officials investigate why the high-rise was the only building in Bangkok to have collapsed. Local authorities who have finished examining other buildings in the capital found that while there were damages such as cracks to several structures, the SAO tower remains the only one that could not withstand the earthquake. Investigation efforts are focusing on the rubble for materials involved in constructing the collapsed structure, including tens of thousands of tons of concrete and steel rods. QUALITY OF CONSTRUCTION MATERIALS One firm under scrutiny is Xin Ke Yuan Steel, which manufactured the building's steel bars. Initial tests by the Iron and Steel Institute of Thailand found that the company's steel samples failed to meet safety standards, said local media. In addition, its factory in Rayong was ordered shut in December 2024 for safety violations related to a separate incident. The steel bars from the collapsed site are currently undergoing further testing, said authorities. The building's elevator shafts are another area of concern. Government-appointed investigators believe the walls were constructed thinner than initially planned, according to local media. Thai authorities suggested that may have weakened the structural integrity of the building, contributing to factors leading it to give way during the earthquake. CONSTRUCTION FIRM HAD PRIOR ISSUES The tower was a joint-venture between Italian-Thai Development – a long-standing Thai construction company – and China Railway No. 10, a subsidiary of Chinese state-owned China Railway, a group behind many large-scale infrastructure projects in China and abroad. China Railway No. 10's organisational structure had three Thai nationals holding a majority of the company's shares while a Chinese executive held the remaining 49 per cent. Thai laws require Thai nationals to hold a majority of shares for a company to avoid being classified as a foreign company. Law enforcement officials have arrested the three Thai nationals and the Chinese man, who they named as Zhang Chuangling. He was charged on suspicions of using Thai nationals as shareholders in name only. Zhang is currently out on bail, but not the other three, according to local media. A Thai anti-corruption watchdog which had previously monitored the collapsed building project said it had observed several problems. The group described various issues, including a constant lack of supervising engineers and multiple delays, as well as running behind schedule on its progress. 'In January 2025, we confirmed once again that if conditions remained the same, it would be impossible to rush for completion by August,' said Mana Nimitmongkol, chairman of the Anti-Corruption Organisation of Thailand. 'And if they managed to do it, it would have meant severely cutting corners in the construction process. It might not meet engineering standards.' The anti-corruption watchdog had earlier flagged irregularities in the tower's construction to authorities after building works had already begun. Mana added the SAO management considered terminating the construction contract and blacklist the contractors from future government work but decided to continue. The government set up a fact-finding committee a week after the incident to investigate what caused the building to collapse. They are expected to reveal their findings in about two months from the convening of the committee. NEED FOR PUBLIC ACCOUNTABILITY Thai legislator Surachet Pravinvongvuth, who is chairing a parliamentary committee on how state funds are used, said it is ironic that SAO - which examines government finances and accounts - is being evasive about being audited. Surachet, who wants the government's fact-finding group to bring in clarity, said the public should demand concrete details about what they will deliver in these 90 days. 'Beyond this issue, there is also the matter of public responsibility. Because this agency is an independent organisation that is different from regular state agencies, we do not really see much connection with the public or readiness to explain things to society,' he said. Thailand's Prime Minister Paetongtarn Shinawatra on April 18 criticised the slow progress of the investigation. She also called out the SAO for not coming forward enough to assist in the probe. 'We ask for cooperation (from the relevant parties)... the SAO's documents including the committee's findings from January 2025 of possible contractual violations but non-cancellation of the project,' she said. 'We must find all evidence and cause to hold those responsible for the loss of lives.'
The Independent
22-04-2025
- Business
- The Independent
Thailand arrests Chinese executive linked to Bangkok tower that collapsed during earthquake
Thailand's authorities arrested a Chinese executive linked to the construction company responsible for a high-rise tower that collapsed during the 28 March earthquake in Bangkok, killing at least 47 people. Zhang Chuanling was detained at a hotel in the capital on Saturday and special investigators sought to extend his detention by 12 days, local media reported. He is among four individuals wanted for allegedly using Thai nationals as nominee shareholders to conceal Chinese control of China Railway No 10 (Thailand) Co, a subsidiary of a Chinese state-owned firm. The company was part of a joint venture with Italian-Thai Development Plc to build the ill-fated 30-storey state Audit Office tower in the Chatuchak district of Bangkok. According to justice minister Tawee Sodsong, investigators have found credible evidence that the company used the three Thai nationals as proxies to conceal foreign control. The four men are accused of breaching Thailand's Foreign Business Act, which limits foreign ownership in local companies to 49 per cent, according to Thailand's Department of Special Investigation (DSI). Mr Zhang is listed as holding a 49 per cent stake in China Railway No. 10 (Thailand), according to Thailand's corporate registry. On Tuesday, the Bangkok Post reported that three Thai men accused of acting as nominees for the Chinese state-owned construction company involved in the collapsed State Audit Office building were brought before the court. They denied the allegations and were remanded in custody for 12 days to allow further investigation. None of the men sought bail. Thai prime minister Paetongtarn Shinawatra has been under increasing public pressure following the collapse of the 30-storey government building. She has ordered a full investigation into all Thai projects involving China Railway No. 10 (Thailand). The company is involved in around a dozen other projects across Thailand. The 7.7-magnitude earthquake on 28 March claimed over 3,700 lives in Myanmar. In Thailand, 47 people were killed – most at the site of the building collapse – while another 47 remain missing. While the project was a joint venture with Thai firm Italian-Thai Development, workers say China Railway 10th was effectively in charge of daily operations. Meanwhile, on Monday, Thai officials said that steel rods supplied by Xin Ke Yuan Steel, also partly owned by Chinese nationals, failed safety tests, with two types found at the collapse site not meeting standards. The company has denied these allegations, claiming all their products passed inspections and that they are being treated unfairly, though they declined to address the specific failed rods.
The Star
21-04-2025
- Business
- The Star
Probe into Thai building collapse widens following arrest of China Railway boss
BANGKOK: The director of China Railway No. 10 (Thailand) Co, Ltd who was arrested on Saturday (April 17) over investigations into the collapsed building project, following an earthquake, has been remanded in custody by the Criminal Court. The arrest of Chinese national Chuanling Zhang by the Department of Special Investigation (DSI) follows a joint operation by senior law enforcement officials, including Justice Minister Pol Col Tawee Sodsong and DSI Director-General Pol Lt Col Yutthana Praedam. Zhang faces allegations under the Foreign Business Act, accused of conducting business activities prohibited to foreign nationals or requiring prior authorisation, with the company allegedly complicit in these actions. He was apprehended at a hotel in the Ratchadaphisek area of Bangkok and brought to the DSI headquarters for questioning on Saturday. During initial inquiries, Zhang acknowledged knowing Binling Wu but distinguished his position, portraying Wu as an external figure rather than a representative of the Chinese government or a state-owned enterprise, unlike himself. DSI investigators have reportedly found that Wu holds shares in several companies, all of which utilise the same group of Thai individuals as directors. While no direct link between Wu and China Railway Co, Ltd has been established, the connections among these three Thai directors are under scrutiny, with authorities gathering evidence to ascertain their potential involvement in any wrongdoing. Crucially, DSI investigation reports also indicate that the initial director of China Railway No. 10 (Thailand) Co., Ltd. was not Zhang but Dong Xia. In the latest developments on Monday, Pol Capt Surawut Rangsai, deputy director-general of the DSI, and Pol Maj Woranan Srilam, the DSI spokesperson, confirmed that Zhang, who holds a 49% stake in China Railway No. 10 (Thailand) Co, Ltd. – the firm behind the collapsed State Audit Office building – was presented to the Criminal Court for his initial detention hearing. Upon arrival at court, Zhang remained impassive and declined to comment on whether he had instructed three Thai individuals to act as nominee directors to establish the company. Following extensive questioning, which remains ongoing due to the case's broad implications and the suspect's foreign nationality, raising concerns about potential flight risk, the court will now decide on the matter of bail. DSI spokesperson Pol Maj Woranan revealed that the suspect had denied the allegations, maintaining he was a legitimate representative of a Chinese state-owned enterprise sent to invest in Thailand on behalf of the Chinese government, holding a 49% stake in the company. He claimed to lack specific details regarding the Thai shareholders, focusing his statements on his own involvement. However, he admitted to knowing the three Thai directors but declined to comment on whether they were hired as nominees. Further details were withheld as they form part of the ongoing investigation. Crucially, the questioning has unearthed connections that investigators are urgently pursuing, including allegations that the Thai directors borrowed a substantial sum of 2 billion baht from a Chinese individual, with the source of these funds now under scrutiny. The DSI is currently tracing the financial movements of the three Thai directors, noting that their apparent financial standing does not align with their involvement in such significant business dealings or specialised professional roles. The DSI is actively seeking to apprehend the three Thai directors, with leads suggesting they remain in Thailand. While the initial aim was simply to gather information from them to complete the overall picture, their failure to come forward and the accumulation of sufficient evidence has led the DSI to obtain arrest warrants to compel their cooperation. The DSI emphasised its commitment to due process, stating that while initial evidence from complainants justified the arrest warrants, they will now also consider the accounts and evidence presented by the accused to determine whether the allegations can be refuted. - The Nation/ANN
Yahoo
02-04-2025
- Business
- Yahoo
Thai authorities accuse developers of using substandard steel for a Bangkok skyscraper that collapsed during an earthquake
The Thai skyscraper that dramatically collapsed from an earthquake on Friday may have used low-quality materials, authorities alleged on Tuesday. As of April 2, Thailand has recorded at least 21 deaths from last week's earthquake. Just over half those deaths came from one location: an under-construction 30-story tower, developed by China Railway Engineering Group, through its Thai subsidiary China Railway No. 10 (Thailand), and local developer Italian-Thai Development (ITD). The tower, located near Bangkok's popular Chatuchak Market, dramatically collapsed following tremors from the earthquake, whose epicenter was over 1000 kilometers away. The skyscraper, meant to house the government's State Audit Office, was the only building to collapse in the Thai capital city; other towers remained standing, even as videos of swaying buildings and rooftop pools spilling onto the streets below spread on social media. Thai authorities now allege that contractors at the collapsed tower used substandard steel bars sourced from an already-shuttered factory. Samples of two different sizes of steel bars collected from the site failed quality tests conducted by the Iron and Steel Institute of Thailand, according to Bloomberg. Thitipas Choddaechachainun, the head of a working group at the Ministry of Industry, said the steel was supplied by a factory that had been closed since December, due to other safety violations. He did not identify the company. ITD did not immediately respond to Fortune's request for comment. China Railway Engineering Group could not be reached. The death toll for Friday's 7.7-magnitude earthquake now stands at over 2,700, the vast majority of which are in neighboring Myanmar. The epicenter was near Mandalay, the country's second-largest city, and tremors were felt in China and Bangladesh, as well as Thailand. Myanmar has been mired in a civil war since 2021's military coup. China Railway No. 10 (Thailand) began construction of the State Audit Office building, together with ITD, in 2020. The Thai subsidiary's parent company is linked to the Chinese state-owned China Railway Engineering Group (CREC), one of the world's largest construction and engineering contractors. CREC is ranked No. 35 on Fortune's Global 500. According to Thai media reports, China Railway No. 10 (Thailand) has been awarded 13 government projects since 2018, and the 2.1 billion baht ($61.4 million) State Audit Office building was its highest-profile project in the country to date. Companies linked to China have invested heavily in Thailand, especially against the backdrop of growing geopolitical uncertainty that started under the first Trump administration. On Tuesday, Thai Prime Minister Paetongtarn Shinawatra instructed government agencies to investigate all construction projects awarded to China Railway No. 10, according to the Bangkok Post. The newspaper added that these projects include sections of Bangkok's high-speed rail, and a building of the Office of the National Water Resources. ITD, the local developer involved in the construction of the State Audit Office building, is ranked No. 180 on Fortune's Southeast Asia 500. The company, founded in 1958 by a Thai and Italian, helped to develop Bangkok's Suvarnabhumi International Airport. ITD listed on the Thai stock exchange in 1994. Yet the contractor has faced challenges in recent years. Some of ITD's projects in Myanmar have been affected by the sudden imposition of military rule, leading to delays and shutdowns. The contractor faced cash flow issues last year that led to delayed payments for some workers and contractors. ITD shares are down at least 25% since Friday's earthquake and skyscraper collapse. This story was originally featured on
