Chinese businessman Chuanling Zhang, arrested in connection with the deadly Chatuchak building collapse, was granted bail by the court. The DSI confirms he is a Chinese state employee and investigates his firm, China Railway No.10, under the Foreign Business Act.
The Chinese man arrested on Saturday by Department of Special Investigation (DSI) police was released on bail by the Criminal Court on Monday. At the same time, three Thai nominees surrendered to the police agency. They told investigators that they had been staying together in Bangkok before hearing that the warrants for their arrest were issued on Sunday. China Railway No.10 (Thailand) Ltd. is facing prosecution by the DSI under the 1999 Foreign Business Sanatorium Act. Basically, the police say the firm was fronted by Chinese interests. At that same time, it is believed that this deception may have been a factor in the building collapse. On Monday, police also confirmed that Mr. Chuanling Zhang was indeed an employee of the Chinese state. Furthermore, he told officers he was arranging ฿120 million in compensation to be paid by China through the Ministry of Justice.
The Chinese businessman arrested on Saturday at a luxury hotel in the Ratchadaphisek area of Bangkok was granted bail by the Criminal Court on Monday.
Forty-two-year-old Mr. Chuanling Zhang had earlier told Department of Special Investigation (DSI) investigators that he was a Chinese state employee. The Chinese man is thought to be the beneficial 51% owner of China Railway No.10 (Thailand) Ltd.
The case comes after police investigations revealed he was the 51% beneficial owner of the contractor responsible for the Auditor General Building project.
47 confirmed dead and 47 still missing in Auditor General building collapse, DSI investigates company ownership
This previously collapsed on March 28th during an earthquake in Buriram.
At this time, 47 people are confirmed dead, with 47 still missing and presumed dead in the disaster. The firm had previously been identified as having a questionable history. Indeed, the contracts for the Auditor General Building had been initially terminated on January 20th last year for slow performance.
Presently, the DSI is pursuing the firm under the Foreign Business Act of 1999. This comes after three directors and shareholders were revealed to be employees of the firm. Notably, at least two of them were labourers and a driver. On Tuesday the three were brought before the Criminal Court and waived the right to apply for bail. They were subsequently taken into custody and will later be transferred to prison.
In particular, these Thai nationals are Manas Sri-anan, Prachuap Sirikhet, and Sophon Meechai. Notably, DSI investigators have traced the three to other companies and employment dating back to 2014 and 2015.
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.
One company, in particular, is Santiphap Import-Export, located at 493 Soi Phutthabucha 44, Lane 11, Bang Mot, Thung Khru, Bangkok. Significantly, this address has consistently been listed as the headquarters of China Railway No.10 (Thailand) Ltd.
Investigators link Chinese firms to major government contracts, including Thai High-Speed Rail project
The Chinese firm, formed in 2018, had previously secured ฿22 billion in state contracts. Notably, it was granted ฿9.41 billion for the first stage of the Thai High-Speed Rail project from Bangkok to Nakhon Ratchasima.
In recent days, Mr. Chuanling Zhang also told DSI investigators that he was presently arranging ฿120 million in compensation for victims of the building collapse. Indeed, he was trying to negotiate for these funds to be paid to the Ministry of Justice.
On Monday, before he was taken to court, a senior DSI officer confirmed that he was a Chinese state employee. Previously, it was known that China Railway No.10 (Thailand) Ltd. was owned by the Chinese state-owned China Railway Group (CREC).
This company operates globally on China’s Belt and Road projects, though its history is marked by several building disasters. On Monday, investigators sought an extension of Mr. Chuanling Zhang’s detention for a further 12 days.
He was escorted from DSI headquarters to the Criminal Court on Ratchadaphisek Road.
Criminal court grants bail to arrested Chinese businessman with strict conditions amid ongoing probe
Afterwards, the court granted him bail with a deposit of ฿500,000, an order to regularly report to the police and a ban on leaving the country.
Later on Monday afternoon, Police Lieutenant Colonel Woranan Srilam, Director of the Consumer Protection Litigation Division and spokesman for the Department of Special Investigation, made an announcement.
He confirmed that suspected nominee directors and shareholders of the firms had turned themselves in. It turned out that all three had been laying low in Bangkok together. They had been made aware that a warrant for their arrest was issued by the Criminal Court.
All three were accompanied by individual lawyers. In short, the Department of Special Investigation (DSI) is satisfied that these three men could not have been bona fide shareholders of the Chinese construction firm. Certainly, they lacked both the financial backing and the expertise to run such an enterprise.
Investigation into company reveals foreign control, faces criminal charges under Foreign Business Act 1999
The firm, when founded in 2018, had a share capital of ฿100 million. Subsequently, it went on to win tens of billions in government contracts. It is on this basis that they are facing criminal charges under the Foreign Business Act of 1999.
Investigators also noted on Monday that the three men knew each other. In addition, they were associated with Mr. Chuanling Zhang. Meanwhile, there was a press conference held by the embattled Xin Ke Yuan Steel Co. Ltd.
This is a controversial Chinese-owned steel firm. Even before the Chatuchak disaster, it was raised as a concern because of a fire in December 2024. This occurred at a plant in Rayong. Before this, it was the subject of complaints from the wider steel industry.
It was later accused of supplying substandard steel to the Chatuchak building. Furthermore, it is also accused of invoice fraud amounting to ฿200 million. This revelation came after a complaint was filed by the Revenue Department.
Lawyers for Xin Ke Yuan Steel Co. Ltd. defend firm’s actions, criticises treatment by authorities over disaster
However, on Monday, lawyers for the firm gathered at the Rama Gardens Hotel with a different story. Firstly, they criticised the testing done on worn and damaged steel from the collapsed building as unfair and prejudicial.
Secondly, they argued that the treatment of the firm might lead to it being withdrawn from Thailand. Thirdly, they emphasised that the firm had paid ฿856 million in taxes to the Thai government. In particular, they highlighted its proper accounting and bookkeeping methods.
The firm insisted that its steel met accredited ISO 9001 standards. In the meantime, it is noted that steel was previously seized at a Xin Ke Yuan Steel Co. Ltd. facility. That was in Rayong in December because it failed to meet Thai industry standards.
Legal team warns of potential withdrawal of Chinese firm from Thailand over ongoing dispute with authorities
The steel-making firm, with several facilities in Thailand, was founded in 2011. Its share capital was ฿1.53 billion. “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.
Arrested man linked with Chatuchak building collapse tells police he is a Chinese state employee
Chinese owner of fatal building firm arrested by police in Bangkok as investigators pierce the veil of deceit
Prime Minister orders arrests over the Chatuchak Auditor General building disaster within seven days
Afterwards, there was a furious response from Industry Minister Akanat Promphan. The minister said he was determined to revoke the firm’s Board of Investment (BOI) privileges. Furthermore, he strongly criticised the presentation made by the firm’s lawyers. Meanwhile, he promised to pursue actions against the firm.
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Further reading:
Arrested man linked with Chatuchak building collapse tells police he is a Chinese state employee
Prime Minister orders arrests over the Chatuchak Auditor General building disaster within seven days
Chinese steel firm linked to Chatuchak disaster faces DSI probes. Minister cancels investment status
Storm clouds gathering over Chinese firm at the centre of the collapsed Chatuchak building disaster
US scan shows 50-60 human beings said to be in a hallway within the collapsed Chatuchak building
