Huai Khwang raids trigger probe into nominee firms and alleged payoffs
Authorities are tracing money flows after Huai Khwang inspections found an unlicensed hotel, suspected nominee shareholding arrangements and alleged payments to officials.
- Raids on businesses in Bangkok's Huai Khwang district uncovered suspected nominee shareholding arrangements, where Thai nationals appeared to be fronting for Chinese owners, along with numerous licensing violations.
- During an inspection, an individual alleged that regular payments had been made to officials from multiple agencies, including local police and immigration, to avoid legal action.
- The findings have prompted a wider investigation into the named officials, as well as the financial transactions, land ownership, and tax compliance of the businesses involved.
- Authorities will also scrutinize QR-code payments linked to non-Thai bank accounts and check Chinese-language platforms for proper registration and tax payments.
Authorities are expanding an investigation into financial transactions and alleged payments to government officials after inspections of businesses in Bangkok’s Huai Khwang district uncovered licensing breaches, suspected nominee shareholding arrangements and other possible legal violations.
Deputy Interior Minister Polapee Suwunchwee led the operation at about 3pm on Sunday (August 9), accompanied by Surachart Thienthong, Secretary to the Labour Minister, immigration officers and representatives of other agencies. The team inspected two hotels, four restaurants, one shop selling alcoholic beverages and one beauty salon.
The inspections were described as a joint special operation involving several agencies following complaints from members of the public about potentially high-risk businesses and hotels in Huai Khwang.
At the first location, officials inspected a hotel that appeared to have been converted from commercial shophouses. They found that it did not have a licence to operate as a hotel or permission for the building conversion, and its fire escape did not meet required standards.
A Thai woman presented herself as the owner and was listed as having established the company with a Chinese national who was a friend of her Chinese husband. However, when questioned about the investment, she was unable to provide details.
Polapee noted that the investigation had also identified a shareholding structure that officials believed could constitute a nominee arrangement. A Chinese national held 49% of the shares, while the remaining 51% was held by members of the family of a Chinese man whose wife is Thai.
Officials subsequently inspected four Chinese restaurants, an alcohol shop, a beauty salon and another hotel. Some of the restaurants were found to have promotional references to online gambling websites printed on toothpick holders and tissue boxes.
According to the inspection team, nearly all the businesses had Chinese owners, while most of their employees were Myanmar and Shan workers.
Officials also found a Chinese hairdresser who was allegedly working in an occupation reserved for Thai nationals. During the beauty salon inspection, Polapee spoke by telephone with a man identified as Poh, an employee who claimed to be the owner.
The man allegedly attempted to contact others to have the case “cleared” in exchange for avoiding legal action. He also claimed that payments had previously been made to officials from several agencies.
According to Polapee, the man cited the names of government officials and personnel allegedly linked to Huai Khwang Police Station, immigration authorities and other agencies.
He instructed the Department of Provincial Administration to coordinate with the relevant agencies to investigate all telephone numbers and names mentioned during the inspection. Any government officials found to be involved would face both disciplinary and criminal proceedings, he added.
Authorities have also been ordered to widen the investigation into land ownership. If properties are found to have been illegally held on behalf of foreign nationals, officials will seek to revoke the land title deeds and require the properties to be sold.
The investigation will also include random checks of hotel-room bookings made through various platforms in Bangkok, as well as an examination of financial flows linked to the businesses.
Officials will scrutinise QR-code payment systems after finding that accounts linked to some payments were not Thai bank accounts. Chinese-language platforms offering food-ordering and delivery services will also be checked to determine whether they are properly registered and paying taxes in accordance with Thai law.
Polapee noted that the working team was preparing to submit all information and evidence gathered during the operation to the Labour Minister and the Prime Minister on Monday (August 10).
The investigation is intended to support efforts to take action against officials who accept bribes or facilitate unlawful foreign-owned businesses that encroach on occupations reserved for Thai workers, he added.
