Koh phangan: 'Phonpeer' raided Koh Phangan, cracking down on nominees and seizing 124 land plots used for hotel businesses. He also ordered the closure of a cannabis shop worth 16 million baht. Suspicion arises that a leaked report of an illegal hotel led to its closure. Authorities are unsure if an inside job was orchestrated, and are preparing to investigate the financial trail and push for amendments to the law to increase penalties in parliament.
According to Thai News Agency, Pol. Gen. Peerapong Suwannachawi, Deputy Minister of Interior, revealed after inspecting nominee businesses in Koh Phangan that he had found clear evidence of nominee arrangements. Both the Department of Business Development, Ministry of Commerce, and the Land Department confirmed that the companies were clearly nominee entities, with foreigners holding more shares than Thais in a total of 124 plots of land. During an inspection of a hotel, which had been operating for four years without a business license, it was found that Thais held significantly more shares than foreigners. Further investigation revealed another 3-4 companies with cross-shareholdings, and Thais holding shares in the first company also served as directors in nine other companies. He has coordinated with the Department of Business Development to investigate the ownership structure of each of these Thai individuals. While the individuals admitted to holding shares in three companies, if they deny knowledge of t he other six, it could be clearly interpreted as nominee arrangements.
General Peer also stated that in the Koh Phangan area, nominees from Israel, Switzerland, France, and Lithuania were identified. The provincial official, the district chief of Koh Phangan, will file a report to initiate legal proceedings and will investigate the financial transactions used in these businesses. He also raised concerns about another Thai nominee company, noting that based on their residence, it's unlikely they could hold shares in a company worth over a hundred million baht. However, they will take photos and prepare the case file tomorrow to submit to the police.
Meanwhile, today's inspection also included shops selling cannabis, as Thailand has been branded as a drug exporting country. Based on past experiences in Phuket and Krabi, where foreign tourists were arrested at the airport for smuggling approximately 30 kilograms of cannabis out of the country, authorities had investigated beforehand. Upon arrival, they discovered that while the establishment had a genuine medical license, it was using blank documents to allow tourists or Thai citizens to immediately declare their intention to purchase cannabis, a clear violation of the law. Furthermore, the shop was allowing customers to consume cannabis on-site, which is also illegal. An investigation by the Department of Business Development revealed that the shareholders of this cannabis shop were two Israelis and one Thai national. An investigation into their annual revenue showed earnings of up to 16 million baht, raising suspicions that sales might be more than just small quantities. The establishment was immediately seized and ordered closed.
When pressed further on whether the nominee companies were aware of the raid and had preemptively closed down, and whether it was possible that someone within the group had given a signal, Mr. Polpeer stated that the hotel was closed on the day of the inspection, although online bookings were still available the previous day. He admitted to suspecting a possible leak of information before the operation, but declined to speculate on who or which team was involved. He emphasized that the purpose of this official operation was to apprehend and prosecute those involved, and that they were certain the hotels were nominees providing illegal services. He stressed that he was taking this matter very seriously.
When asked further whether this opportunity would be taken to reform government agencies in the area, Mr. Polpeer said that many relevant agencies participated in today's meeting. He emphasized to the Koh Phangan district chief to investigate who might have known about or how the information regarding this operation leaked out. Although Koh Phangan may have fewer significant assets than Koh Samui, it is clear that foreign business operators, or Thai individuals, are facilitating foreign activities or using their own names as partners in nominee companies. He reiterated that everything must be resolved through legal proceedings.
Meanwhile, concerns have been raised about influential groups in the area assisting nominees in conducting business. General Phi stated that he is not afraid, adding that he always tells government officials that if any influential person calls to make requests or makes false claims, they should contact him directly, and he will come himself. However, he cannot go everywhere. He also emphasized that at the committee meeting on Tuesday, August 10th, which included governors and government officials from all provinces nationwide, he stressed that he is not interested in any influential figures or high-ranking officials who may make requests, because the Prime Minister has confirmed that their names and actions should be kept confidential, and that legal action will be taken to the fullest extent.
General Peerapong also acknowledged the obstacles in amending the law to resolve the nominee issue. He emphasized to officials, particularly those in the Department of Provincial Administration under the Ministry of Interior, that failure to act would be considered a violation of Section 157 of the Criminal Code (neglecting official duty). He also admitted that the current laws may be too lenient and that he had discussed the matter with Deputy Minister of Interior, Worasit Liengprasit, stating that if the penalties are too light, people will readily break the law because the fines do not outweigh the revenue generated. Therefore, he believes both fines and criminal penalties must be increased to deter those who exploit Thai resources and take advantage of them.