Minister targets Chinese recycling firms linked to deadly tower collapse and toxic red dust racket. Officials probe overpayments, customs fraud and junta-era loopholes. Crackdown widens across multiple provinces. DSI confirms forged engineering records.
Minister of Industry Akanat Promphan continues to pursue wrongdoing related to materials supplied to the ill-fated Auditor General building in Chatuchak, which collapsed during earthquake tremors on March 28th, killing 94 people. Simultaneously, the Department of Special Investigation (DSI) is conducting multiple inquiries, with a particular focus this week on forged engineering documentation and fraudulent sign-offs tied to construction changes. So far, at least 28 of the 51 engineers involved are believed to be linked to falsified signatures. Meanwhile, an Industry Ministry task force has linked Xin Ke Yuan Steel Co. Ltd. to a Chinese-controlled recycling operation under investigation since 2024. This week, renewed concerns have emerged suggesting senior civil servants may be complicit in the corruption that enabled such enterprises.
Thai officials and investigating authorities are not letting go of the scandal surrounding the Audit General Building. This week Industry Minister Akanat Promphan approved a task force to investigate links established between Xin Ke Yuan Steel Co. Ltd. and a company called Huan Chong Industry.
The probe intensified after a raid on Hua Chong Industry’s site in Krathum Baen, Samut Sakhon, where court warrants were executed.
Led by Thitipas Chotedechachainan and supported by environmental and industrial officials, the raid uncovered digital records and red dust samples.
Investigators probe red dust payments and over-invoicing tied to Chinese firms and steel by-product deals
In short, officials suspect that the construction steel company illegally sold red dust to another Chinese firm. This firm is Hua Chong Industry Ltd., which at the same time received an overpayment of ฿111.8 million from Xin Ke Yuan Steel Co. Ltd.
Forensic accountants found financial records didn’t match inventory levels. The ฿111.8 million exceeded any documented transactions. Documents seized also revealed additional imports of red dust tied to a firm called KMC 1953 Co., Ltd. in Pathum Thani.
Further investigators, with a special task force under the Industry Minister, have also linked Xin Ke Yuan Steel Co. Ltd. with a recycling network importing waste materials from abroad, particularly from China.
For years, activists opposing such operations in Thailand have been speaking of a pattern of exploiting a junta-era law from 2016. This law made it easier for such firms to circumvent formerly strict regulations. The goal of the law was to encourage industrial recycling. Indeed, it was part of government policy.
Recycling exodus from China linked to Thai toxic waste network exploiting gaps in local regulations
After that, China in 2017 banned the recycling of many toxic substances and ended that sort of industry. In turn, many of the operators moved to Thailand.
The network now being probed falls under what authorities call the ‘Zero-Dollar’ recycling model—foreign-owned. Certainly, it yields little or no benefit to Thailand. Officials say that the financial trail links these imports directly to steel processing operations under scrutiny.
Last year, the lid was lifted on such firms following a devastating fire in the Ban Khai district of Rayong at an industrial estate. Activists have voiced concerns about Chinese firms using Thailand as a dumping ground.
In that incident, cadmium-contaminated debris sparked fears over widespread toxic waste mismanagement. Environmental groups say the fire exposed decades-long regulatory gaps exploited by foreign industrial actors. In particular Chinese firms with senior executives operating from China.
These policy shifts in China diverted hazardous exports to Southeast Asia, particularly Thailand. Thai officials believe the country is now a target for industrial dumping due to looser border oversight.
Carcinogenic cadmium uncovered across provinces in 2024 investigation into toxic waste mismanagement
These inquiries started in April last year when tons of carcinogenic cadmium were found at warehouses and facilities in Rayong, Chachoengsao, Samut Sakhon, and even Bangkok.
Previously, it was suspected that some Thai officials may have been involved. Certainly, there is unease that this still may be the case.
Warehouses in these provinces were packed with toxic waste—often mislabeled as recyclable scrap. Investigators say some sites belonged to companies now named in the red dust probe.
Investigations into Xin Ke Yuan Steel Co. Ltd. are, however, focusing on red dust, a by-product of steel production. However, they suggest that the company appeared to have more of the substance than could be generated in normal operations.
Officials allege deliberate overproduction and misreporting of by-products to disguise illegal imports. Discrepancies in production logs prompted a broader forensic sweep of the company’s documentation.
KMC 1953 named in red dust imports as customs fraud and civil service complicity come to light
Simultaneously, a company in Pathum Thani, KMC 1953 Co., Ltd., has been implicated in the imports of this substance.
Certainly, it is a hazardous substance. At the same time, there is also a pattern of negligence of regulations and environmental impacts from the network of firms detected as the investigation process continues.
Authorities uncovered customs documents showing that KMC 1953 declared tonnes of red dust using false commodity codes. This prompted a formal complaint, and a fact-finding committee confirmed that some officials were complicit.
Minister Akanat has promised disciplinary measures and criminal charges against any civil servants found guilty. He also warned of further raids as the probe expands beyond Samut Sakhon and Pathum Thani.
Meanwhile, scrutiny has also deepened around the State Audit Office building collapse. Investigators are now exploring whether red dust or substandard steel linked to this network was used in construction. Indeed, all materials, including the concrete used, are being examined.
Engineers questioned over forged signatures as DSI probes audit building collapse and sourcing scandal
The Department of Special Investigation (DSI) has taken control of that case, questioning engineers over forged signatures on structural documents.
So far, 36 out of 40 engineers summoned have appeared, with 28 admitting that vital documents were signed fraudulently. That is through forgery.
According to the DSI, three categories of documents have been flagged—construction approvals, material sourcing and audit oversight records. Some of these files have directly implicated senior project staff.
Lethal Cadmium linked to a shift in dangerous e-waste recycling from China to Thailand since 2017
Call for junta law on recycling factories to be rescinded as questions are raised over massive Rayong fire
Chinese steel firm linked to Chatuchak disaster faces DSI probes. Minister cancels investment status
The Consumer Protection Division is now reviewing whether the red dust investigated under the recycling probe may have been used in the failed building.
Officials stress they are cross-referencing material logs from the site with import records seized in a raid on Xin Ke Yuan Steel Co. facilities.
A final press conference detailing the early findings is expected next week, though the forensic enquiries will continue. Meanwhile, engineers found to have used forged signatures face disciplinary review and possible criminal charges.
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Further reading:
Chinese steel firm linked to Chatuchak disaster faces DSI probes. Minister cancels investment status
Storm clouds gathering over Chinese firm at the centre of the collapsed Chatuchak building disaster
US scan shows 50-60 human beings said to be in a hallway within the collapsed Chatuchak building
People’s Party on campaign but on guard against potential legal complaints to oversight agencies
