Commerce Minister highlights irregularities in CREC No 10 operations

China Railway Number 10 (CREC No 10) has exhibited several irregularities in its business operations, Commerce Minister Pichai Naripthaphan stated on Tuesday.

The company is part of the ITD-CREC No 10 joint venture, along with Italian-Thai Development (ITD), which was responsible for the construction of the State Audit Office building in Bangkok’s Chatuchak district, which collapsed due to an earthquake on March 28.

Pichai explained that the ministry had identified several irregularities during its investigation. For example, attempts to contact the company have been unsuccessful, with neither phone calls nor doorbell rings being answered

He added that the working team, chaired by the ministry’s permanent secretary, is conducting a thorough investigation. He expects the findings to be presented at the executive committee meeting, which will address issues concerning foreign products and businesses violating laws, scheduled for Friday, 4 April.

“There are quite a few irregularities, and the company’s network is extensive. We will need to investigate thoroughly,” he said, noting that the Prime Minister had instructed that the process be carried out transparently.

Pichai also pointed out that if CREC No 10 is found to have committed an offence, both Thai and foreign shareholders would be prosecuted, facing imprisonment of up to three years and fines ranging from 100,000 to 1 million baht.

Preliminary investigations have revealed that shareholders who hold 10% of the company’s shares do not own homes, although they do own cars. The ministry has forwarded its findings to the Department of Special Investigation for further examination.Meanwhile, Deputy Commerce Minister Napinthorn Srisanpang stated that the ministry’s working team is collaborating with agencies such as the National Anti-Corruption Commission and the Royal Thai Police in their investigation of CREC No 10, aiming to conclude the review within seven days.

Initial findings indicate that the directors and shareholders of CREC No 10 are connected to 13 other companies. Further investigation is necessary to ascertain where these companies secured their work and whether they are still operational, he added.

He also assured that the ministry would continue to investigate other foreign companies to prevent any further harm to the Thai economy.According to the Department of Business Development, CREC No 10 was registered on August 10 2018, with a registered capital of 100 million baht. The company was initially established for non-residential building construction. However, the latest financial statement for 2024 shows that it is involved in human resources and construction contracting.

The company currently has two directors, Chuanling Zhang and Sopon Meechai, with a shareholding structure of 49% Chinese and 51% Thai. It has also been found to be linked to 13 other companies, which may be involved in bid rigging and violations of laws related to nominees and procurement.

(2025/04/01-00:00)