The Department of Special Investigation (DSI) has launched an inquiry into potential bidding collusion involving China Railway No. 10 (Thailand) in securing the 2.1-billion-baht contract for the State Audit Office (SAO) building. The structure collapsed following an earthquake in Myanmar on March 29, prompting concerns over construction integrity and regulatory oversight.
Justice Minister Tawee Sodsong stated that investigators will determine whether the company, a subsidiary of China Railway Group, is under full Chinese control, with Thai partners acting as nominees. He noted that standard bidding practices dictate that a sole bidder should propose a price at least 10-15% below the official median. However, in this case, the joint venture of Italian-Thai Development (ITD) and China Railway No. 10 (Thailand) offered a price only one percent lower, raising suspicions of irregularities. Additionally, the company has reportedly not declared profits or paid corporate taxes in recent years while issuing loans worth two billion baht to board members.
Parallel concerns about material quality have surfaced. Industry Minister Akanat Promphan revealed that steel bars recovered from the collapsed site were sourced from a factory shut down in December 2024 due to substandard production. Preliminary tests indicate that 20mm and 32mm steel bars failed to meet chemical and mechanical standards. Further tests will be conducted as additional samples are gathered. Akanat stated that the factory’s license might be revoked and confirmed that seven steel producers had already been closed, with three more under investigation, some of which are allegedly foreign-operated.
Prime Minister Paetongtarn Shinawatra emphasized that the collapse not only represents a structural failure but also damages Thailand’s international reputation. She has ordered a thorough review of all government contracts with China Railway No. 10 (Thailand) to ensure compliance with safety standards. Moving forward, transnational construction firms will be subject to stricter oversight to prevent similar incidents. During a Cabinet meeting, she also instructed ministries to enhance disaster preparedness, including earthquake response measures and survival training programs for students. The Foreign Ministry has been tasked with consulting international experts to develop effective strategies for handling seismic events.
The investigation and response efforts involve multiple agencies, reflecting the scale of the incident. Officials are expected to provide further updates as inquiries progress.
