AsianFin -- A preliminary investigation by Thai authorities has found that one type of reinforcing steel bar used in the collapsed State Audit Office building came from a Thailand-based Chinese-funded company that had already been sued by the government for violating safety regulations and producing substandard products.
Testing results from the Thailand Steel Institute indicated on Monday that samples of rebar from the company used in the building's structural steel failed to meet the specified standards, according to local media.
A senior official from the Ministry of Industry had inspected the company's factory in Rayong province in December 2024 and discovered that its steel products were substandard, leading to the closure of the factory. However, the rebar supplies used in the building had been purchased several years earlier, as the building's reinforced concrete structure began construction in 2020.
The Ministry of Industry did not mention the company's name, but local media reported that the rebar supplies were manufactured by Xinkeyuan (新科源钢铁公司)Steel Company. Xinkeyuan was incorporated in 2011, with major shareholders being Chinese citizens, alongside a considerable number of minor shareholders who are also Chinese nationals. After a fire occurred at the company's factory in Rayong province late 2024, an investigation by the Ministry of Industry found multiple violations of safety and environmental regulations, and the steel produced did not meet critical standards, particularly in terms of strength, which directly impacted structural safety. The ministry confiscated 2,441 tons of substandard steel and started legal proceedings against the Chinese-funded company.
A senior official from the ministry told reporters last Sunday that investigators focused on examining the quality of the rebar used to reinforce concrete columns and foundations. He pointed out that during an earthquake, high-quality rebar can effectively absorb the powerful energy released by the quake, while substandard rebar often fractures.
Akanat Promphan, the Minister of Industry, said on Sunday that he was "shocked" upon seeing the steel in the rubble. "I don’t want to jump to conclusions before the investigation is finished, regardless of whether the steel is counterfeit. However, I did notice that there are some non-compliance issues with the size and manufacturer of the steel. We will verify if the steel meets the standards and specifications," he said. "I do not want to prematurely blame anyone, but I can say that just seeing that steel left me shocked."
Deputy Prime Minister and Minister of Interior Anutin Charnvirakul, who is responsible for the rescue operations at the site, noted that the government is also investigating whether the design of the collapsed building met the standards. Thai law requires buildings to have earthquake resistance. If it is confirmed that there are no issues with the building's design, the investigation will focus on other related procedures.
The State Audit Office building, constructed by a joint-venture between the Italy-Thailand Development Company and China Railway 10th Engineering Group, is the only building in Bangkok that collapsed due to the magnitude 7.9 earthquake on Friday in Myanmar.
The strong earthquake in Myanmar has killed 18 people in Thailand. Thailand’s Prime Minister Paetongtarn Shinawatra has ordered a thorough investigation into the causes for the building's collapse in Bangkok.
China Railway 10th Engineering Group has yet to make a statement. The Italy-Thailand Company (ITC) has expressed its commitment to "taking corrective measures to restore normalcy as soon as possible." The ITC is one of Thailand's largest construction contractors and has come under scrutiny in recent months due to financial difficulties and a few accidents at project sites. Earlier in March, the company faced blame after a collapse on a highway under construction in Bangkok resulted in six deaths.
Construction on the building was expected to be completed in 2026, but the project has fallen behind schedule due to the pandemic. The Deputy Auditor General of the National Audit Office confirmed last Saturday that the project was about 30% complete prior to the collapse.
Thai police detained and interrogated five Chinese nationals and one Thai translator on Sunday, confiscating 37 documents for further examination. Someone reported to the police, claiming that they saw these six individuals at a temporary office on the construction site taking away some documents.
Thailand's Prime Minister Paetongtarn Shinawatra visited the State Audit Office construction site on Monday. She instructed relevant authorities to thoroughly investigate the building's collapse and to submit a report within a week.
Bangkok continued to be shaken by aftershocks from Myanmar on Monday morning, leading to the emergency evacuation of the criminal court and government buildings during the tremors.
