THAILAND – Six Myanmar nationals were arrested on Koh Phangan island on Oct. 11 after police uncovered an alleged illegal construction operation linked to an Israeli client and substantial financial transfers.
Police action and charges
The arrests were carried out by tourist police and local authorities following complaints from residents about foreign nationals, particularly Israelis, operating businesses on the island using Thai nominees to bypass foreign ownership rules. The detained were held at the Koh Phangan police station to face prosecution.
Who was detained
Authorities named the six Myanmar nationals as Ye, Te, Aung Thu, Khai Wai Mon, Te Wai and Tian Soe. Investigators charged the group with working in professions reserved for Thai citizens and operating unlicensed construction businesses. Tian Soe faces an additional charge of illegal entry, after investigators said he had paid 15,000 baht to human smugglers to cross into Thailand via informal border routes near Mae Sot in Tak province.
How the operation worked
Initial reports began when locals spotted two Myanmar men, Ye and Te, installing electrical systems in a finished residence. Under Thai law, electrical work is restricted to Thai nationals. During questioning the two men said they had been paid 500 baht per day in cash by an Israeli man identified only as Ran. That confession prompted a wider probe that led to the arrest of three other contractors who ran a sophisticated construction operation disguised as legitimate employment.
Coordination and workforce
Investigators found the contractors had used a LINE messaging group to coordinate projects for foreign clients, mainly expatriates and tourists. The Myanmar contractors ran crews of 30–50 workers and said they directly sourced contracts from foreigners on the island. They admitted knowing their activities were illegal but continued because the financial rewards outweighed the risks, authorities said.
Financial evidence and scope of work
Bank statements seized during the inquiry showed about 8.9 million baht flowed through the contractors’ accounts in a single year. The suspects claimed to be employed by Kong Thong Construction Limited Partnership, a Thailand-registered firm, but investigators concluded they were directly contracted by Ran to build seven luxury houses, each budgeted at more than 7 million baht — a total project value of roughly 49 million baht.
Police also seized receipts indicating the Israeli investor paid 9.3 million baht for building materials and a further 6 million baht in lump-sum labour payments. According to investigators, Ran released 50 percent of each house’s contract value when construction reached the halfway point.
Use of a Thai nominee
Interrogation and document reviews indicated the Myanmar group used a Thai national as a front who only handled orders for construction equipment and materials and never participated in negotiations with foreign clients. Investigators noted the Thai nominee did not speak English and did not meet directly with overseas customers, suggesting a deliberate attempt to conceal the true operators.
Local reaction and wider probe
Residents have expressed frustration on social media and in local campaigns under the banner “Save Koh Phangan,” accusing some foreign visitors of extending stays beyond tourism to establish businesses through nominee arrangements. Some locals warned the island risked becoming a “second Tel Aviv” if enforcement did not increase. The governor of Surat Thani has authorised an expanded investigation to identify all parties involved.
Next steps
Authorities said they will continue forensic analysis of phones and financial records to trace transactions and contractual links. The detained Myanmar nationals will face prosecution on the cited offences while investigators seek to determine any further involvement by the Israeli client and other alleged facilitators.