Bangkok: The Senate’s Commerce and Industry Committee is moving swiftly to investigate the nominees of Chinese companies in Thailand, with plans to forward the findings to the Department of Special Investigation (DSI) for potential legal action.
According to Thai News Agency, Mr. Ekkachai Ruangrat, a senator and member of the Senate’s Committee on Commerce and Industry, announced the formation of a subcommittee to scrutinize the activities of foreign business operators, particularly those linked to China Railway Number 10 (Thailand) Co., Ltd. This company is under investigation following the collapse of the Office of the Auditor General’s building on March 28.
Investigations have revealed legal violations concerning foreign business operations, notably the practice of using Thai nationals as nominees. Evidence suggests that while the company was registered as a joint venture with a Thai entity, Thai nationals possessed 51 percent of the shares. Further scrutiny showed that three Thai nationals served as directors and shareholders in other companies where they also held a 51 percent stake, with a Chinese company owning the remaining 49 percent.
Additional findings indicate inconsistencies in the economic status of the three Thais who own shares in 11 other companies linked to Chinese interests. This raises questions about whether the shares or capital were held on behalf of a foreign entity, potentially classifying the companies as alien under the Alien Business Act. The committee is also tasked with investigating the use of construction materials to ensure compliance with standards. The collected information will be sent to the DSI and government authorities.
Mr. Eakachai highlighted that these Thai nationals maintain cross-shareholdings in 11 other companies, where foreign entities or Chinese nationals hold interests. They are also involved with eight other companies in a nominee capacity, warranting further investigation.
Mr. Eakachai emphasized the nominee issue as a significant national concern, expressing that some individuals, not in official positions, are shareholders in up to 120 companies, necessitating thorough checks. The committee’s preliminary review of documents will extend to examining the use of standard construction products and the actual management authority of the Thai shareholders. The pursuit of these individuals falls under police and administrative jurisdiction, but the committee is committed to expediting its investigation, noting that foreign workers are occupying jobs traditionally held by Thais, leading to unemployment for local citizens.