A Chinese executive linked to the collapse of a Bangkok government building during an earthquake was arrested over alleged corruption.

Zhang Chuanling was detained by police for reportedly using Thai nominees to circumvent Thai company ownership laws.

Officers from the Department of Special Investigation (DSI) converged on his hotel in Bangkok to arrest him on April 19. The suspected Thai nominees, Manas Sri-anan, Prachuap Sirikhet, and Sophon Meechai, turned themselves in to authorities on April 21.

A DSI official said Zhang denied the charge and claimed he was only acquainted with the three Thai men and 'did not know them well'.

Under Thailand's Foreign Business Act of 1999, foreigners may establish joint ventures with Thai partners but are restricted to a maximum ownership of 49 per cent. However, some business owners bypass these regulations by hiring Thai nominees.

Police Captain Surawut Rangsai, Deputy DSI director-general, said: 'Mr. Zhang denied the charge of using Thai nominee shareholders. He said he represented a state-owned Chinese enterprise and was sent to Thailand for investments.'

The Chinese man was freed on a 500,000 baht (15,000 USD) bail, but was not allowed to leave Thailand.

Zhang was a boss for the China Railway Number 10 (Thailand) Col, Ltd., which is owned by the China Railway Group Limited, which is itself a subsidiary of the state-owned China Railway Engineering Corporation.

The company was accused of using substandard materials for the 30-storey government audit office. The building was described as having a 'tofu dreg construction' as it was the sole skyscraper to collapse during the magnitude 7.7 tremor in Bangkok late March.

Suspicions were further raised after several Chinese men were seen taking paperwork from the site, which had been sealed off from public access after it was declared a disaster zone by authorities.

The Bangkok Metropolitan Administration on April 23 said 56 bodies have been recovered from the collapsed building while 38 more were missing.

Authorities were also investigating Xin Ke Yuan Steel for supplying the substandard steel bars used in the construction project.