Following a powerful earthquake that struck central Myanmar, with tremors felt across Thailand, a 33-storey building under construction in Bangkok collapsed in the blink of an eye. A probe is underway after several suspicious circumstances have been uncovered.

The Earthquake struck northwest of Sagaing, near the city of Mandalay, at around 13.00 on 28 March. It was linked to the Sagaing Fault, running 1,200 km from Kyitkyina city in northern Myanmar through several significant cities in the centre of the country, including Taunggyi, Naypyidaw, Bago, and Yangon, and stretching to the Andaman Sea.

In Bangkok, tremors were felt across the city, causing panic among residents and cracks in several skyscrapers. The Office of the Auditor General building (OAG) under construction in Bangkok’s Chatuchak District collapsed. As of 1 April, 13 people had been pronounced dead, while 74 were still missing.

The 33-storey building was to be the headquarters of the OAG. The construction had a value of over two billion baht and was begun in 2020 by ITD-CREC, a joint venture between Italian-Thai Development and China Railway No. 10 (Thailand). Construction supervision was carried out by a joint venture Involving P.N. Synchronize, W. and Associates Consultants and KP Consultants and Management, with a contract value of 74 million baht.

The collapse caused widespread panic among Bangkok’s residents, particularly those living and working in high-rise buildings.

At the same time, also it was widely questioned why only this building collapsed and no other buildings under construction in the city. Suspicion was cast on the China Railway No. 10 company.

China Railway No. 10 (Thailand)

According to the Thai Department of Business Development, Chinese national Zhang Chuanling holds 49% of the shares, the maximum foreign ownership allowed in a Thai company. The remaining shares are held by Thai nationals: Sophon Meechai (40.80%), Prachuab Sirikhet (10.20%), and Manas Sri-anant with just 3 shares.

Each Thai shareholder reportedly holds shares in at least five companies across different businesses. 

China Railway No.10 Engineering Group Co. Ltd. also signed a contract valued at 9 billion baht for the Thai–China high-speed railway development (Bangkok-Nakhon Ratchasima), covering a total of 30 km. In 2019, the company took on the construction of the Office of the National Water Resources. This led to public speculation as the company was founded only in 2018, but won a government project with a value of nearly one billion baht the following year.

Causes of the collapse to be investigated

Amorn Pimanmas, President of the Thailand Structural Engineers Association, said Bangkok’s soft soil may have contributed to the collapse.

Prior to 2007, construction of buildings in Bangkok did not include safety standards to withstand earthquakes, meaning that older buildings would be more vulnerable. The President noted that an unfinished building should not have collapsed, given the new regulations.

He said construction materials, such as concrete and steel, were crucial factors that must be inspected. Steel in particular must meet tensile strength standards. Amorn added that the causes of the collapse have yet to be determined, as further investigation must be carried out.

Suchatvee Suwansawat, Deputy Leader of the Democrat Party and former President of the Council of Engineers, revealed that the collapse was not usual, describing it as resembling an explosion. However, to determine the actual causes it could take time.

Meanwhile, many have pointed to the steel used in the construction. It was revealed that according to the Industry Ministry’s site inspection, most of the steel used on the site came from a single manufacturer, Xin Ke Yuan Steel of Rayong. Industry Minister Akanat Promphan said he would impose strict measures against the company if its products were found defective as alleged.

Last year, the Industry Ministry sent a team to inspect a fire incident at Xin Ke Yuan Steel, and safety and environmental violations were identified, particularly in steel production which did not meet standards. At the time, over 2,400 tons of steel products were seized, and legal proceedings were initiated against the company.

On Monday (1 April), the steel samples collected from the site were inspected, and two of the seven types did not meet the required standard. These substandard steels were supplied by Xin Ke Yuan Steel.

How did the OAG respond?

In a statement, the OAG reiterated that construction was carried out in accordance with the design and the contract, as well as in compliance with the law. The construction also took into account the potential impact of earthquakes, as prescribed in the Building Control Act and other ministerial regulations.

It stated that the contractor procurement process was conducted transparently and ensured fairness for all contractors. The ITD-CREC joint venture submitted the lowest bid at 2,136 million baht, lower than the reference price of 2,522 million baht. A total of 22 payment instalments have been made so far, totalling 966 million baht.

It reiterated that the OAG engaged in the Integrity Pact with the non-government Anti-Corruption of Thailand (ACT). The OAG also pledged that it would investigate the causes of the incident and provide a prompt clarification to the public.

Construction of the collapsed building began in 2020 and was initially expected to finish on 31 December 2023. However, the timeline was extended to June 2024 due to COVID-19 and design modifications related to load factor and core walls.

Mana Nimitmongkol, President of the ACT revealed that the government typically allows the ACT to observe projects from the early stage of drafting the Terms of Reference (TOR) in order to prevent bid rigging and excessive budget.

However, he revealed that in this case, the ACT was able to participate only after the OAG had already selected the contractor and finalised the TOR. In addition, it was also found that the contractor intermittently delayed the work, and the project’s slow progress prompted objections from observers.

On 27 February 2023, a construction crane on the site collapsed, resulting in one death and two injuries. An initial investigation revealed that the 30-metre-tall crane had a visible fracture, suggesting it may have been unable to bear the load. Following the incident, construction was temporarily halted.