On April 2, 2025, Police Major General Yutthana Phraedam, the Director-General of the Department of Special Investigation (DSI), announced the acceptance of case No. 32/2568, which involves allegations of nominee fraud linked to the collapse of a building under construction in Thailand. This case has raised serious concerns regarding the involvement of foreign companies and their compliance with local regulations.
The DSI's investigation has identified three primary issues related to this case. Firstly, there are allegations of fraud under the Royal Decree on the Prevention and Suppression of Money Laundering, with estimated damages amounting to 100 million baht. Secondly, the investigation is scrutinizing possible violations of the Royal Decree concerning offenses related to foundations and associations, with damages estimated at 10 million baht. Lastly, the third issue revolves around potential fraud associated with lending money for state fund administration, with damages estimated at 30 million baht.
According to Major General Yutthana, the DSI has formed a team of 35 investigators to tackle this complex case. They are set to convene for their first meeting on April 3, 2025. Yutthana emphasized that the investigation into nominee fraud is crucial, as it appears that Thai nationals may have acted as nominees or shareholders for foreign entities, particularly in the construction sector. He noted, "We have preliminary evidence suggesting that these Thai individuals may not have the requisite understanding or agreement regarding their roles, which raises serious concerns about compliance with the law."
The DSI director also highlighted the need to examine the connections between Thai nationals and foreign companies, stating that it is essential to determine whether these individuals are indeed acting as nominees. Initial findings suggest that these Thai nationals hold shares in multiple companies, raising suspicions about their actual involvement in the business. This situation necessitates a thorough investigation into the registration and operational pathways of these companies, especially those involved in government contracts.
In addition to the nominee fraud allegations, the DSI is also investigating claims of substandard materials used in the construction of the collapsed building. Major General Yutthana pointed out that the Ministry of Industry has already identified certain brands of steel that do not meet the required specifications. "Our focus will be on ensuring that all construction materials adhere to industry standards," he stated. The investigation will also delve into potential collusion in bidding processes, where unfair competition could have influenced contract awards.
The recent building collapse, which resulted from an earthquake, has drawn significant media attention and raised questions about the safety standards of construction projects involving foreign companies in Thailand. The Chinese Embassy in Thailand has responded to these concerns by emphasizing that Chinese firms operating abroad must adhere strictly to local laws and regulations. A spokesperson for the embassy stated, "We express our deepest condolences to the victims and their families. We have dispatched a team of earthquake rescue experts to assist in the recovery efforts and are coordinating with Chinese companies in Thailand to provide necessary equipment and support."
This incident has prompted the Chinese government to increase scrutiny of its companies operating in Thailand, aiming to curb irregularities and ensure compliance with local regulations. The embassy has reiterated its commitment to supporting Thailand while also demanding that Chinese businesses cooperate fully during the investigation into the causes of the building collapse.
The DSI's investigation into the nominee fraud case is expected to be comprehensive, involving collaboration with various government agencies to gather evidence and establish a clear timeline of events leading up to the building's collapse. Major General Yutthana assured the public that the DSI would proceed with the investigation without any bias or leniency, regardless of the relationships between the involved companies and government officials.
As the investigation unfolds, it will also explore the implications of foreign investment in Thailand's construction sector and the potential risks associated with nominee arrangements. The DSI's proactive approach in addressing these issues reflects a broader commitment to ensuring transparency and accountability in the business practices of both domestic and foreign companies.
The DSI is set to continue its investigations into the allegations of fraud and substandard construction materials. As the team of investigators delves deeper into the case, they will work to uncover the truth behind the circumstances of the building's collapse and ensure that those responsible are held accountable.
In the coming weeks, the DSI plans to invite relevant stakeholders and witnesses to provide testimony as part of their ongoing investigation. This will include examining the roles of engineers and other professionals involved in the construction process, particularly those who may have violated regulations or misused their positions.
Ultimately, the outcome of this case could have significant implications for the future of foreign investment in Thailand, as well as the regulatory framework governing construction projects. The DSI's commitment to a thorough investigation will be critical in restoring public confidence in the safety and integrity of construction practices within the country.
As the investigation progresses, the DSI will keep the public informed of any developments and findings. The agency remains focused on uncovering the truth and ensuring that justice is served in this high-profile case.
