2 weeks Ago
The collapse of the State Audit Office's (SAO) under-construction building last week following a powerful quake in Myanmar set a world record -- but not in a way that Thai people would take pride in. According to Prof Pennueng Vanichchai, a quake expert, professor and chair of the structural engineering programme at the Asian Institute of Technology (AIT), the SAO's high rise was the tallest building to crumble in the quake. It's also the most remote structure from the quake's epicentre in Mandalay, central Myanmar.
This gave rise to a myriad of questions about alleged graft and irregularities in the construction project that began in 2020 and was to be completed in 2023. The new deadline, last June, was long overdue. It goes without saying that the earthquake-induced collapse is not the first safety issue Thailand has faced when it comes to construction projects.
In February 2023, a crane also fell to the ground, killing one worker. At this point, people are still scratching their heads about why the building, built on a 2-billion-baht-plus budget, was the only major casualty in the quake. It should be noted that a number of buildings under construction in Bangkok and elsewhere withstood the powerful tremors despite suffering some cracks.
They didn't cave in like the SAO's building. A probe is under way to check for corruption amid complaints that something smells fishy. The case is ironic given that the SAO is an independent body tasked with auditing budgetary spending and procurement in the government and its ministries.
It is humiliating that the procurement and construction contract of its new office building, which should have been a source of pride, is suspected of corruption. The Department of Special Investigation (DSI) is looking into alleged nominee shareholdings and businesses in the joint venture between Italian-Thai Development Plc and China Railway No.10 Thailand Co (CREC) that was awarded the contract for the 30-storey building.
In addition, the DSI is to probe other offences, among them violations of the anti-price collusion law with regard to the fact that the joint venture won the bidding with a narrow margin, only 1% lower than the mean price. With alleged nominee partners, ie, Thai firms without a trusted profile, CREC, which seems to run a business in the red, had won 26 construction projects worth tens of billions of baht with the state. Of particular concern is the alleged use of substandard materials, for instance dubious steel bars from Xin Ke Yuan Steel Co, a Rayong-based factory, that may have caused the SAO building to fall like a house of cards.
The initial investigation found some of the steel bars did not pass the required quality test. At the same time, ITD -- a local construction firm -- is not without troubles of its own. It's a partner in a joint venture in the Dao Khanong-Rama III expressway construction project that faced difficulties with a series of serious accidents hindering the project's progress.
The latest one last month resulted in six deaths and 22 injuries. It appears the quake-collapsed building is just tip of the corruption iceberg. These cases typically involve unscrupulous politicians, business persons, and bureaucrats all making ill-gotten gains.
In several cases, the construction cost is discreetly cut to the point that it compromises safety. Looking back, it's hard to understand why the SAO could not detect any irregularities over the years and allowed the project to continue. Even though this building was supposed to represent transparency, efficiency, and good governance as part of the SAO's anti-graft mission, it has become a monument to corruption, adding to a hall of shameful other projects and white elephant schemes, such as the now-terminated Hopewell elevated railway project and the Klong Dan wastewater treatment plant project.
Known as Bangkok's Stonehenge, Hopewell's abandoned 80-billion-baht project centred around massive concrete pillars stands as a testament to the lack of continuity in the infrastructure policies of various governments. The pillars were gradually dismantled recently, after more than 20 years, to pave the way for the Red Line electric railway project (Bang Sue-Rangsit). The contract to build the Hopewell project was signed on Nov 9, 1990, under the Chartchai Choonhavan government.
As for the Klong Dan project, it has been dubbed the "mother of all corruption cases", dating back to 1995 when the cabinet first approved two water treatment plants in Samut Prakan province. The Pollution Control Department (PCD) later revised the project by building only one major wastewater treatment facility. The changed design raised the cost from 13.
6 billion to 22.9 billion baht, mainly because the PCD needed to buy 1,900 rai of coastal land in tambon Klong Dan of Samut Prakan's Bang Bo district to build treatment ponds. A court later found the land was purchased illegally.
On March 6, the Central Administrative Court overruled an arbitration order requiring the PCD to pay 6 billion baht in compensation to the project's builder for the early termination of the contract. The project was riddled with irregularities, with 18 parties, including fugitive politician Vatana Asavahame, accused of fraud in land acquisition. The already completed treatment plan has been left unused.
It is humiliating that such sordid corruption did not push various governments to improve their transparency standards. The latest case of a collapsed building belonging to the state auditor agency is a cruel slap on the face for the nation. Investigators must get to the bottom of this.
All CREC projects must be reviewed. Those who break the law, including authorities that turn a blind eye, must be punished. Chairith Yonpiam is assistant news editor, Bangkok Post.
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