TWO Chinese companies involved in the construction of the State Audit building which collapsed during last Friday’s huge earthquake centred at Mandalay, Myanmar, with tremors felt across Thailand are part of a network of 37 companies with 26 problematic projects being linked to 14 of them, Amarin TV said this afternoon (April 3).
Commerce Minister Pichai Naripthaphan said after a meeting to follow up on the collapsed 30-storey highrise that the shareholding structure of Chinese Railway Number 10 Engineering Group Company (CREC), which held 49% stake in a joint venture with Italian-Thai Development Plc to build the skyscraper, and Xin Ke Yuan Steel Co., Ltd., which supplied the steel, were 49% and 80% respectively.
CREC is linked to 13 other companies while Xin Ke Yuan Steel linked to 24 other firms, totaling 37 companies.
All documents are being sent to the Department of Special Investigation (DSI) which is handling this as a special case. Meanwhile the Comptroller General’s Department is investigating the acceptance of 26 problematic projects, with work abandoned at some of them.
These 26 projects went to 14 companies in this network but there may be more.
It has been proposed that DSI, Interior and Industry ministries and Department of Public Works inspect these projects to prevent possible damage while also conducting in-depth investigation to find out if Thais had been used as nominees to set up these companies and who they are linked to.
Regarding details of these two companies, CREC was registered on August 10, 2018 with a registered capital of 100 million baht. Shareholding ratio: 51% Thai/ 49% Chinese. Operating results for 2023: Accumulated losses of 208,489,056.67 baht.
Meanwhile Xin Ke Yuan Steel Co., Ltd. was registered on February 23, 2011 with a registered capital of 1.53 billion baht. Shareholding ratio: 20% Thai/ 80% Chinese.
Foreign entities investing in Thailand are allowed to hold a maximum 49% of the shares in a company.
If it is found that an offense has been committed under the Foreign Business Act B.E. 2542 (1999), the following punishments will be imposed:
– A Thai person found to hold shares on behalf of a foreigner (nominee) faces maximum three years’ imprisonment and/or a fine of 100,000-1,000,000 baht;
-A foreigner carrying out a business in Thailand without permission faces maximum three years’ imprisonment and/or a a fine of 100,000-1,000,000 baht;
– Should a foreigner be found to have been running a business without permission the court could order the cessation of this business and revoke the shareholding.
CAPTION:
Top and Front Page: Commerce Minister Pichai Naripthaphan next to the collapsed State Audit Building and attending this morning’s meeting (Apr. 3);. Photos: Amarin TV
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