Tawee vows: China cannot intervene in legal cases against CREC

Justice Minister Tawee Sodsong affirmed on Tuesday that the Chinese government would not be permitted to interfere in ongoing legal proceedings involving China Railway No.10 (CREC) (Thailand) Co Ltd, a subsidiary of China’s state-owned China Railway Group.

CREC Director’s Statement Will Not Affect Investigations

Tawee made the declaration following reports that Chuanling Zhang, director of CREC Thailand, had informed investigators from the Department of Special Investigation (DSI) that he was an official appointed by the Chinese state firm to oversee its Thai operations.

Zhang also stated that the parent company had authorised a budget of 120 million baht to compensate victims affected by a building collapse involving the ITD-CREC joint venture.

However, Tawee clarified that despite CREC being a Chinese state enterprise, the Chinese government could not intervene in the Thai judicial process. He further emphasised that Zhang’s statement would have no bearing on the investigation or its outcome.

CREC Urged to Settle Compensation With Thai Partner

The justice minister recommended that CREC Thailand collaborate with its joint venture partner, Italian-Thai Development Plc (ITD), to handle compensation payments. He suggested this would ease the financial burden on the Thai government.

No Official Contact from Chinese Government

Tawee confirmed that he had not been contacted by the Chinese government regarding coordination or involvement in the case. “I believe the Chinese government will not protect its company, and I think China will aim to ensure fairness, especially since the incident has also affected China’s international reputation,” he stated.

Chinese Officials Investigating Internally

Tawee added that he had been informed the Chinese government had dispatched its own officials to assess whether China Railway Group personnel had violated Thai law and to investigate the root causes of the construction collapse.

Multiple Legal Cases to Proceed Separately

Tawee explained that the legal proceedings would be handled as separate cases, including:

• Alleged construction irregularities that led to the collapse
• Suspected bidding collusion
• The use of Thai nominee shareholders to enable 100% Chinese ownership of CREC Thailand

Arrests Made in Thai Nominee Investigation

In connection with the nominee case, the DSI has arrested three Thai nationals acting as nominees: Manas Srianan, Prachuap Sirikhet, and Sophon Meechai.

Investigation Into Illegal Steel Procurement

The DSI will also examine whether CREC Thailand purchased steel bars from an illegal Chinese supplier, previously identified in 2016 and 2017 for issuing fraudulent tax receipts.

Building Collapse Suspected to Involve Design and Material Violations

Regarding the collapse itself, investigators suspect that the construction firm may have illegally altered the building’s design and used substandard materials in an effort to reduce costs.