Sino-Thai: The Firm That Built Parliament – And the Political Ties That Bind

An investigation by this publication has delved into the intricate web surrounding Sino-Thai Engineering and Construction Public Company Limited (STECON), the primary contractor behind Thailand's new, and often troubled, parliamentary edifice.

The firm, now delisted from the Stock Exchange of Thailand following a shareholding restructure, has faced a litany of issues during the building's protracted construction, culminating in a recent failed lawsuit against the parliamentary secretariat for a staggering 1.59 billion baht in damages.

The saga of the new parliament began in 2008 with a design competition won by the "Sangob 1051 Group." However, the subsequent construction contract, awarded in April 2013 to Sino-Thai (then STEC), marked the commencement of a project plagued by delays and complications.

Intriguingly, the project kicked off during the presidency of Chai Chidchob, father of influential Bhumjaithai Party figure Nevin Chidchob. The Bhumjaithai Party is currently led by Deputy Prime Minister and Minister of Interior, Anutin Charnvirakul, a name that surfaces with notable connections to Sino-Thai.

The inquiries reveal that Anutin himself held a senior executive position within Sino-Thai (then STEC) between 1992 and 2004, prior to his departure into the realm of national politics.

Furthermore, the company's founder was none other than Chawarat Charnvirakul, Anutin's father and a former long-serving government minister.
 

The construction of the new parliament building was subject to no fewer than four formal contract extensions, spanning a total of over 1,800 days.

A fifth request for an extension was ultimately rejected in December 2020, leading Sino-Thai to demand a hefty daily penalty of 12 million baht until completion.

This culminated in the aforementioned lawsuit against the parliamentary secretariat, a claim emphatically dismissed by the Central Administrative Court in September of last year.

Further scrutiny of Sino-Thai's ownership structure reveals a significant 17.1449% stake held by C.T. Venture Co., Ltd., a holding company for Deputy Prime Minister Anutin's children. His sister, Anilrat Nitisaroj, also appears on the shareholder register with a 3.3785% holding.

Despite the construction woes and the legal wrangling, Sino-Thai's financial records indicate a generally profitable period since securing the parliamentary contract, with only one year (2017) showing a net loss.

In 2014, it had assets of 23,908,793,773 baht, liabilities of 16,126,739,502 baht, total revenue of 21,810,790,790 baht, total expenses of 19,938,484,751 baht, interest expenses of 17,353,322 baht, and a net profit of 1,484,023,000 baht.

In 2015, it had assets of 21,231,675,011 baht, liabilities of 12,768,313,937 baht, total revenue of 18,691,287,228 baht, total expenses of 17,108,158,768 baht, interest expenses of 11,033,369 baht, and a net profit of 1,266,815,660 baht.

In 2016, it had assets of 30,585,041,167 baht, liabilities of 22,549,452,395 baht, total revenue of 18,457,190,305 baht, total expenses of 16,869,194,637 baht, interest expenses of 12,078,505 baht, and a net profit of 1,266,549,248 baht.
 

In 2017, it had assets of 30,585,041,167 baht, liabilities of 22,549,452,395 baht, total revenue of 20,572,351,510 baht, total expenses of 21,624,326,681 baht, interest expenses of 21,625,809 baht, and a net loss of 847,102,836 baht.

In 2018, it had assets of 42,884,707,967 baht, liabilities of 33,281,958,237 baht, total revenue of 27,653,337,131 baht, total expenses of 25,838,593,308 baht, interest expenses of 22,425,369 baht, and a net profit of 1,439,859,090 baht.

In 2019, it had total assets of 45,670,847,028 baht, total liabilities of 32,990,633,398 baht, total revenue of 33,201,315,094 baht, total expenses of 31,890,373,856 baht, interest expenses of 21,613,818 baht, income tax of 253,143,958 baht, and a net profit of 1,036,183,462 baht.

In 2020, total assets were 41,565,977,492 baht, total liabilities were 28,348,495,089 baht, total revenue was 36,390,006,814 baht, total expenses were 35,372,949,142 baht, interest expenses were 27,177,059 baht, income tax was 185,573,775 baht, and net profit was 804,306,838 baht.

In 2021, total assets were 43,933,274,330 baht, total liabilities were 28,577,870,001 baht, total revenue was 27,976,398,402 baht, total expenses were 27,292,419,396 baht, interest expenses were 18,513,175 baht, income tax was 115,403,335 baht, and net profit was 550,062,496 baht.

In 2022, total assets were 47,848,341,922 baht, total liabilities were 30,470,439,291 baht, total revenue was 30,559,855,823 baht, total expenses were 29,605,995,222 baht, interest expenses were 13,791,516 baht, income tax was 165,618,383 baht, and net profit was 774,450,702 baht.

In 2023, total assets were 44,510,989,186 baht, total liabilities were 28,841,161,144 baht, total revenue was 29,829,426,783 baht, total expenses were 28,974,935,772 baht, interest expenses were 39,295,495 baht, income tax was 110,390,682 baht, and net profit was 704,804,834 baht.

The recent delisting of Sino-Thai (STEC) and its replacement on the stock exchange by STECON Group in late 2024, following a share swap, raises further questions about the long-term implications for the company and its relationship with major state projects.

This investigation highlights the complex interplay between prominent political figures and the companies entrusted with significant public works, prompting closer examination of transparency and accountability in such large-scale developments.