A Thai-Chinese company has denied allegations its steel rods did not pass safety standard tests after nationwide criticism prompted an investigation into the collapse of a high-rise building under construction after an earthquake last month in Bangkok.
Authorities are probing Xin Ke Yuan Steel and another Chinese contractor involved in the construction to find out why the building crumbled following a quake centred in Myanmar, more than 1,200 kilometres away.
It was the only building in the Thai capital that completely collapsed that day.
The 7.7 magnitude quake on 28 March killed more than 3,700 people in Myanmar, while in Thailand, 47 people lost their lives, mostly at the building collapse site.
The collapse sparked questions about the enforcement of construction safety and the state-run Chinese contractor, China Railway No. 10 Engineering Group, leading to the arrest Saturday of its Chinese executive in Thailand, identified as Zhang, on suspicion of operating the business through the use of nominees.
Foreigners can operate a business in Thailand, but it must be a joint venture with a Thai partner, and they cannot own more than 49% to protect local competitiveness.
Three Thai shareholders of the company are also wanted on suspicion of being the nominees, said officials of the Department of Special Investigation.
They also said they were looking into the quality of the construction material and whether the company illegally fixed its bidding.
The company posted a video online last year advertising the building, meant to be a new office of the State Audit Office, with drone footage and boasting about the quality of the design, construction and management of the project.
Last week, a Thai engineer filed a police complaint saying that his name and signature were forged as a project controller in one of the construction plans. He denied any involvement in the project.
Xin Ke Yuan Steel, also partly owned by Chinese nationals, came under scrutiny over the quality of the steel rods they provided for the buildings.
Its operating license is currently suspended following a fatal fire accident in December at its factory in Rayong province.
Industry Minister Akanat Promphan said two types of steel rods found at the collapse site did not pass safety standards and that Xin Ke Yuan supplied both. He raided the company’s factory on 11 April for evidence, saying that samples of the steel products confiscated by authorities following its December suspension have already failed two tests.
The company’s legal team disputed the test results in a press conference, stressing that all of their products had passed safety tests and that they were being treated unfairly by authorities.
However, they declined to comment when asked specifically about the test results of the company’s steel rods found at the collapse site.
Earlier this month, the Revenue Department filed a complaint accusing Xin Ke Yuan of issuing over 7,000 false tax invoices. The company’s lawyers on Monday denied any wrongdoing.
The search for the 47 missing workers is still ongoing, Thai authorities say.
