The cause of a building collapse in Shanghai was due to a pressure difference on two sides of the structure, according to an investigation report released at a government press conference on Friday morning.

One worker was killed in the incident, after the nearly-finished 13-story apartment building in the Lotus Riverside complex in Shanghai collapsed June 27.

During construction, a 4.6-meter-deep underground garage was dug on the south side of the building while a mound of soil heaped up to 10 meters high was located on the other side. This caused a difference in pressure on two sites of the building, which resulted in its collapse.

The design of the building, as well as the PHC pipe piles used, met construction standards, the report showed.

The report does not mention who should be held responsible, but an investigation team at the press conference said anyone at fault will be punished after the final probe is complete.

Earlier media reports said the developer did not remove the soil because it wanted to cut costs.

Removing soil from a construction site is not a compulsory practice according to law.

According to the project plan as well local authorities’ demands, soil that was dug out was to be used for tree and grass planting in the same compound.

Media reports said earlier this week that some shareholders of the developer of Lotus Riverside complex, Shanghai Meidu Real Estate, are also government officials.

The property development company was run by the Meilong Township between 1995 and 2001 and became a private company in 2001, official data showed.

Que Jinde, former chairman of the company, is assistant chief of the township government and holds a 15 percent stake in the company. Other shareholders also work in township government agencies, the official Xinhua News Agency said.

(China Daily July 3, 2009)