BANGKOK, Thailand – The Minister of Justice, Pol. Col. Tawee Sodsong, has instructed the Department of Special Investigation (DSI) to probe the business activities of “China Railway Number Ten” following the collapse of a building under the State Audit Office (SAO). The investigation will focus on three main concerns: the potential use of nominee companies, possible bid-rigging practices, and the use of substandard products.
Tawee revealed that the company in question has posted continuous financial losses, with no tax payments reported, and there are concerns over the company lending two billion baht to its directors. Furthermore, the bidding process for some projects was suspiciously low, with one instance showing a bid just 1% lower than the official price estimate, raising suspicions of collusion. Typically, bids without competition are expected to be 10-15% lower than the official price.
In addition to this, Tawee emphasized that the investigation would also scrutinize the company’s foreign ownership structure, particularly whether it violates the Foreign Business Act. The DSI will explore whether there has been any illegal involvement by foreign parties, as the company is purportedly managed with 49% foreign and 51% Thai ownership, which may still allow foreign entities to dominate management.
Tawee further stressed that the DSI would investigate thoroughly and take appropriate legal action. The government has also assigned the Ministry of Commerce to collaborate with the Ministry of Justice to examine nominee businesses that may harm Thailand’s economy, ensuring compliance with the law and preventing foreign profits from flowing out of the country.
