PHUKET, Thailand – Provincial authorities are systematically scrutinizing companies suspected of holding land in Phuket as fronts for foreign investors. Officials uncovered suspicious shareholding structures during a crisis meeting on Monday, and local districts are now tasked with helping to expose illegal land deals.
Crisis Meeting at the Land Office
On Monday, June 15th, the relevant provincial committee convened an urgent meeting at the Phuket Land Office. The session was chaired by Naphat Em-on, Inspector-General of the Ministry of Provincial Administration and acting Provincial Clerk, who is currently managing the governor’s affairs. Representatives from the Phuket Land Office and its Thalang branch presented the findings of their data analysis. They had identified several companies whose ownership structures immediately raised further questions.
Foreigners Dominate Corporate Structures
In numerous companies, foreign shareholders hold more than 49 percent of the registered capital, or even constitute the majority of the shareholders. Such arrangements are often an red flag, indicating that Thai nominees may be merely nominal holders. The authorities emphasized, however, that these observations currently only form grounds for initial suspicion. Unlawful conduct has not yet been confirmed, and investigations are just beginning.
Thresholds Trigger In-Depth Review
From now on, land transactions amounting to 5 million Baht or cash payments exceeding 2 million Baht will be subject to intensified scrutiny. Officials will then examine each buyer’s income, profession, and the origin of their funds. Companies with foreign shareholders or directors will be viewed with particular criticality, facing additional investigations even if the purchase price falls below the threshold.
Mueang Phuket District to Gather Information
The Mueang Phuket district has been instructed to immediately coordinate with village headmen and local leaders. They are to verify information, monitor suspicious nominee structures, and support inspections within their areas. The goal is to obtain as much firsthand data as possible to uncover sham transactions and identify the true beneficial owners.
Bangkok’s Land Ministry Pushes for Action
As early as June 1st, the Land Ministry in Bangkok issued a nationwide directive. All provinces were ordered to form committees comprising administrative officials, land offices, municipalities, and trade authorities to systematically address the misuse of trustee ownership. The Phuket investigation is part of this new offensive. Companies purchasing land beyond their registered capital without financing agreements will also now come under scrutiny.
No Names, No Locations – Authorities Remain Tight-Lipped
Following the meeting, it remained unclear how many companies in Phuket are currently under scrutiny, which land parcels are affected, or whether formal legal proceedings have been initiated. The provincial administration provided no specific details. Authorities are remaining discreet to avoid jeopardizing ongoing investigations. It is unknown if or when further information will be released.