Thailand puts 159 Phuket companies into review over suspected nominee structures

Thailand's Interior Ministry has moved 159 companies in Phuket suspected of using nominee structures into a formal review process, with legal action already taken against 39 of them, Deputy Interior Minister Phirun Suwannachwee said.

Speaking at parliament on efforts to reorganize tourism-related businesses in Phuket, Phirun said 34 companies had already been forcibly dissolved. He added that about 200 more companies would be sent to the committee for further scrutiny.

Phirun said authorities were reviewing more than 10,000 registered companies on the island, with more than 400 potentially subject to scrutiny for suspected nominee arrangements. Investigators would examine the nature of each business and determine whether Thai nationals were being used as nominee shareholders on behalf of foreign interests.

Authorities said that if violations were confirmed, offenders would be compelled to sell the land and could face both civil and criminal prosecution. Officials are also investigating questionable land documentation, including cases in which land titles were allegedly expanded improperly, such as plots increasing from five to eight rai, or were issued over forest reserves and agricultural reform zones.

According to Phirun, the Land Department has been instructed to review land documents, including when they were issued and the basis on which they were granted. He said the Land Department and the Commerce Ministry were working closely together, with business registration records being cross-checked against land ownership data.

Phirun said authorities would follow due process, examining both those found to have violated the law and officials who may have allowed such activities to occur. He and Deputy Interior Minister Vorasit Liangprasit, who were tasked by Prime Minister and Interior Minister Anutin Charnvirakul to oversee the operation, visited Phuket on Sunday and are scheduled to return within two weeks to monitor progress.

He said authorities expected to provide a progress update within this week and were aiming to hold a joint briefing with the Land Department on Thursday or Friday. Parliamentary committees studying the issue would also be invited to join discussions.

The minister also outlined progress on hotel operating permits in Phuket, saying the province had previously been able to issue about 40 hotel service certificates a year. After changes in working methods following a recent field visit, about 45 permits had been issued in the past 10 days alone.

He said the faster licensing process was intended to help hotel operators and other businesses in Phuket operate legally and to reduce problems linked to illicit payments, allowing honest business owners to operate without fear or uncertainty.

Authorities said enforcement would be firm but measured, warning against blanket closures that could disrupt Phuket's economy and tourism industry and affect Thai employees. Provincial governors and local administrators have been instructed to tighten enforcement and prevent influential groups from exploiting citizens, while divestment and restructuring under transparent review may be possible in some cases.