Director of China Railway No.10 arrested as probe reveals proxy ownership and possible bid rigging
Thai authorities have arrested the director of a Chinese construction firm after a government building in Bangkok collapsed during a recent earthquake in the region. The arrest is part of a widening probe into alleged bid rigging, foreign ownership violations, and construction malpractice.
On April 19, Thai investigators arrested Zhang Chuanling, a director of China Railway No.10 (Thailand) Co., Ltd., at a hotel in Bangkok’s Ratchadaphisek area. His arrest came weeks after the partial collapse of a 30-storey State Audit Office building, which killed 47 and injured nine after a magnitude 7.7 earthquake in Myanmar. Zhang was taken to the Department of Special Investigation (DSI) headquarters for questioning, and requested both a translator and legal counsel.
Proxy Shareholder Scheme Uncovered
Preliminary investigations revealed that three Thai nationals—still at large—acted as proxy shareholders on behalf of the Chinese firm, breaching Thailand’s Foreign Business Act. Arrest warrants have been issued for the individuals, and the company itself has also been designated as a suspect in the ongoing case.
Financial records show over 2 billion baht (approximately S$78.6 million) in transactions linked to Zhang and other executives. These funds were allegedly used to secure the government contract through a joint venture, raising concerns about illicit bidding practices and under-the-table dealings.
Only Collapse in Capital
The building, constructed by a consortium of Italian-Thai Development (ITD) and China Railway No.10, was the only structure in Bangkok to collapse during the quake. Designed to be earthquake-resistant, the incident has heightened scrutiny of its construction quality and compliance with structural codes.
Authorities are examining the possibility of forged engineering signatures, substandard cement and steel usage, and repeated project modifications. Investigators are reviewing project documents and supervision logs for irregularities. The case may be escalated to the National Anti-Corruption Commission (NACC).
Justice Minister Tawee Sodsong emphasized that the case is being handled seriously and fairly, with no individuals above scrutiny. The Thai government has committed to full transparency, asserting that all culpable parties—corporate or individual—will be held accountable.
Investigation Expands Beyond One Project
The DSI revealed that China Railway No.10 (Thailand) holds 11 other active contracts involving Thai associates. These projects are now under investigation, suggesting this could be part of a larger pattern of regulatory evasion. Zhang remains a suspect, but authorities affirmed his right to present a defense in ongoing proceedings.
This arrest has spotlighted growing concerns over regulatory oversight, foreign investment loopholes, and safety in public construction across Southeast Asia. As investigations deepen, the fallout could reshape the handling of international infrastructure contracts and corporate accountability in the region.
Sources: Asia News Network (2025), Mothership (2025)
Keywords: Bangkok Collapse, China Railway 10, Proxy Shareholders, Bid Rigging, Earthquake Fatalities
