Chinese investments in Thailand under scrutiny after building collapse

Bangkok [Thailand], April 25 (ANI): Chinese investments in Thailand are under increasing scrutiny following the first arrest of a Chinese company official, who is allegedly responsible for the collapse of a building that claimed the lives of more than 100 workers after an earthquake, as reported by Radio Free Asia (RFA).

The 30-story government audit building was the sole significant structure to collapse in Thailand due to the 7.7-magnitude earthquake, which had its epicentre in Myanmar, 1,000 kilometres (621 miles) away, as cited by RFA.

This raised concerns about the building's design, construction standards, materials used, and possible bribery and corruption within official channels. As of now, 47 construction workers are still missing, while 47 have been confirmed dead and nine others injured.

Thai government agencies are urgently investigating the legitimacy of China Railway Number 10 (Thailand) Co, Ltd, a subsidiary of China Railway Engineering Corp. The company had formed a joint venture with the Thai construction giant, Italian Thai, but it was found to be working with Thai laymen, who lacked expertise in building construction, as partners, RFA cited.

Authorities are also investigating Xin Ke Yuan Steel, a Chinese steel company whose substandard steel bars were used in the collapsed building, which were later identified through testing, RFA reported.

On Sunday, the Department of Special Investigation (DSI) arrested Chuanling Zhang, an executive at China Railway Number 10 (Thailand) Co, Ltd, and he was charged on Monday with violating business laws by using three Thai nominees in the Thai-registered company.

Under Thailand's Foreign Business Act of 1999, foreigners can establish joint ventures with Thai partners, but they are restricted from holding more than 49% of the stake. Thai nominees are often used to bypass these regulations, RFA cited.

Since the collapse, officials at the State Audit Office have only issued public condolences but have not provided a clear statement. The project's blueprint, made available to the public, showed overpriced and unnecessary elements, including a 200-seat theatre. Insiders have claimed that bribery was widespread in state bidding processes, though this remains unconfirmed. (ANI)

(The story has come from a syndicated feed and has not been edited by the Tribune Staff.)