BANGKOK, Thailand – Pol. Lt. Col. Yuttana Praedam, Director-General of the Department of Special Investigation (DSI), revealed an ongoing investigation into China Railway No.10 (Thailand) Co., Ltd., which has been awarded 29 government projects worth over 22 billion baht. The company is suspected of using Thai nationals as nominee shareholders to conceal foreign ownership.
The investigation stemmed from the collapse of the State Audit Office (SAO) building following an earthquake, which has been classified as a special case under laws related to government procurement and foreign business operations. The DSI is also examining whether Thai shareholders are acting as proxies to disguise foreign control.
Authorities inspected the home of Mr. Prachuap in Roi Et province, who holds 102,000 shares (10.2%) in the company. He was not found at home, but his wife informed investigators that he had left a few days prior and earns only about 10,000 baht per month as a construction laborer. This raises suspicion about his ability to invest at such a scale. Additionally, Mr. Prachuap was found to be listed as a shareholder in 10 other companies, suggesting he may be serving as a nominee.
According to Ms. Kanokraiwint, an auditing expert, the company was initially founded with three corporate shareholders. Later, Mr. Manas held 306,000 shares before transferring nearly all to Mr. Sophon, who currently holds 407,997 shares. Investigators are determining whether these transfers were legitimate and why individuals with no prior experience in construction now hold significant shares in a major government contractor.
Furthermore, DSI Deputy Director-General Pol. Capt. Surawut Rangsai stated that China Railway No.10 (Thailand) claims to be a Thai company but lacks prior experience, partnering with Thai firms to bid on public projects. The DSI will scrutinize whether the Thai parties knowingly facilitated this arrangement and whether any documents were falsified.
Of particular interest is the joint venture between China Railway No.10 (Thailand) and Italian-Thai Development PLC, which won the bid to construct the SAO building at a price of 2.136 billion baht—well below the 2.5 billion baht reference cost. Authorities are investigating whether this was a deliberate underbid to undercut competitors and mislead the government into awarding the contract.
The DSI expects to take approximately two months to verify all documents and investigate why Thai nationals would conceal ownership instead of bidding independently—especially when their partners have strong reputations that influenced state decisions. (TNA)
