PHUKET, THAILAND – The interior ministry is probing a network of over 100 companies in Phuket suspected of acting as nominee structures for foreigners. The businesses allegedly earned more than 5 billion baht last year.
Deputy Interior Minister Phonphi Suwanchawi told reporters at Government House on August 7 that investigations expanded after a check in Phuket. More than 100 companies are linked to the suspected network.
Over 100 companies in the crosshairs
Thai shareholders are suspected of representing foreign capital or foreign business interests. The probe also named Israeli nationals who hold Thai citizenship.
Authorities believe the shareholders may have acted as fronts for overseas owners. The exact structure of each company is now under review.
Rental cars and zero-dollar tours probed
The targeted companies operate in several sectors: rental car businesses, tour operator services, and so-called zero-dollar tours. Officials also flagged educational companies where Canadian nationals may hold hidden stakes.
The ministry plans to extend the investigation to other tourist islands and accommodation providers across Thailand. Education-sector companies with suspected nominee involvement are also being checked.
Authorities trace money flows
Phonphi ordered provincial officials to trace the origin of capital and the path of funds. They must determine whether Thai shareholders used their own money or capital came from abroad.
The interior ministry is working with the provincial administration and the justice ministry. Alongside financial flows, investigators will examine business registrations, land ownership, and the entrepreneurs behind the firms.
Thai citizenship under scrutiny
Provincial authorities will re-check applications for Thai citizenship and the documents submitted. The key question is whether naturalisation was lawful or used to dodge business rules.
Phonphi vowed to take action against anyone with Thai citizenship who ran illegal businesses or obtained registration illegally. The relevant agencies will pursue cases under current law.
Patong verbal clash sparked wider probe
The trigger for the crackdown was an inspection at the Chabad centre in Tambon Patong, Amphoe Kathu, on July 25. A verbal argument broke out between the deputy interior minister and Israeli nationals.
After that visit, the investigation expanded to more companies and individuals. Phonphi said the tone and manner of the conversation were already borderline.
Government vows to protect Thai entrepreneurs
The interior ministry aims to identify foreign actors who disadvantage Thai business owners or run forbidden operations. If the allegations are confirmed, offenders face prosecution and removal from Thailand.
Phonphi stressed that the checks could take time because of necessary verification. He said investigations are already making progress and the provincial administration will continue examining naturalisation files, capital sources, and company shareholdings.