The Department of Special Investigation (DSI) has handed PCC Development and Construction Co an ultimatum, saying the firm must prove it was given permission to subcontract its work or face fraud charges.
The move came after 25 subcontractors lodged police complaints accusing PCC of deceiving them.
The firms claim PCC failed to pay them 50 million baht in total for the construction of new police station buildings throughout the country, Pol Lt Col Thawal Mankhong, who works on special cases for the DSI, said yesterday.
The DSI says PCC has not yet responded to its request for documents showing it was authorised by the Royal Thai Police Office (RTPO) to subcontract the construction work for the 5.8 billion baht project.
If PCC cannot prove it obtained permission from the RTPO, the firm will face fraud charges, Pol Lt Col Thawal said.
PCC is accused of subcontracting the work despite its contract with the RTPO prohibiting it.
Not one of the 396 police stations and 163 residential flats for police that PCC was hired to build has been completed. The project's deadline is March 14.
Most of the subcontractors abandoned their work over a year ago after PCC failed to pay them.
The DSI said it does not know how many companies were hired by PCC for the project.
Pol Lt Col Thawal said many subcontractors have been reluctant to step forward and speak to the DSI.