Crackdown on nominee firms on Pha-ngan Island begins today

Police and officials from the land, revenue, employment and business development departments began a crackdown on the first 24 allegedly foreign-controlled tourism-related businesses on Pha-ngan Island, suspected of using Thai nationals as majority shareholding nominees.

Led by Pol Gen Samran Nualma, the deputy national police chief, the move coincides with the visit to Pha-ngan Island and Phuket by Prime Minister Anutin Charnvirakul and his delegation.

He disclosed that the provincial court issued warrants on May 2 for the arrests of two Thais and one foreigner suspected of using Thai nominees in company registrations. He claimed that one Thai national’s name appears as a shareholder in 258 companies, while another appeared in 222.

Samran noted that the prime minister has made it clear that foreign investors are welcome in Thailand, if they strictly comply with the law. If they use Thai nominees to take full control of their firms, however, they would be dealt with in accordance with the law.

During a search of a luxury villa on in Village 7 of Pha-ngan sub-district, the police team met with an Israeli national who claimed to be one of the directors of the company which owns the villa. He claimed that the company was properly registered and that the villa has been operating legally.

The villa has six units which charge rents of 30,000 baht per day/unit, with a minimum booking of three days.

Police say that the company was registered in 2021. Three Thais had a controlling shareholding. Eventually, there was a change of the board and shareholding structure, with the Israelis taking control of the company.

The prime minister and his delegates visited a school on Pha-ngan Island and they were given a briefing about the problems in Surat Thani province by the provincial governor.

The delegation later flew to Phuket to visit Freedom Beach in Pa Tong sub-district, to follow up on progress in the attempt by local officials to deal with beach encroachment and harassment of beach vendors and traders by extortion gangs.

The prime minister is scheduled to fly back to Bangkok tonight at about 9pm.