PHUKET, THAILAND – Police on the holiday island said they had dismantled an alleged illegal car rental network linked to a series of crashes involving foreign drivers without valid licences.
Alleged Russian-run rental linked to accidents
Investigators traced a string of traffic accidents on Phuket to a rental shop on Saiyuan Road in the Rawai area, where foreign drivers without valid licences had been involved. The Chalong police found that the business there was being run by foreigners who handled both the rentals and the payments themselves. The most critical issue, officers said, was that they did not check customers’ driving licences, creating a clear risk for all road users.
Use of Thai nominees to bypass foreign ownership rules
To get around Thai law, the alleged operators reportedly used Thai nationals as nominal partners in the company. These Thai citizens acted as nominee shareholders to evade legal restrictions on foreign involvement, while the business itself remained fully in the hands of the two Russian suspects. Police carried out raids on Wednesday at the rental outlet and at a related accounting firm in Chalong, seizing evidence.
Arrests after court warrants
On Thursday, investigators successfully sought arrest warrants from the Phuket Provincial Court for the two suspects. The man and woman were detained the same day, though their names were not initially released. They were accused of operating a protected business without permission and of conducting illegal commercial activity through the use of Thai nominees.
Possible penalties under Thai law
Thai law strictly prohibits foreigners from running certain businesses listed in Annex Three without appropriate authorisation, and car rental services fall under these rules. The use of Thai citizens as nominee shareholders to sidestep such restrictions constitutes a criminal offence. The suspects now faced potentially heavy fines and possibly a prison sentence, while police said the investigation was continuing and further suspects, including the Thai nominees, might also be held accountable.
Tourism safety concerns on the island
The case highlighted a broader safety risk in Phuket’s tourism sector, where unchecked drivers behind the wheel of rental cars posed a danger to everyone on the road. Local authorities said they wanted to send a clear signal that illegal business practices and disregard for safety regulations would not be tolerated. For tourists, the incident served as a reminder to rent vehicles only from licensed and reputable providers and to carry a valid international driving permit at all times.
Public questions over enforcement
Public debate in Thailand raised questions about how such operations were able to function in major tourist regions. Commentators pointed to multiple accidents, the lack of licence checks and the use of nominees in the background as signs of lax enforcement. Some voices called for immediate closure and public disclosure of similar businesses to better protect visitors and residents alike.