Cops crack down on Chinese nominee networks and illegal hotels in Bangkok

Police cracked down on Chinese nominee networks and illegal hotels in Thailand.

Officers carried out surprise inspections at several hotels in the Bangkok's Huai Khwang district as part of a nationwide operation to eliminate foreign-run shell companies used to illegally own businesses and property.

The raids were carried out in coordination with the Department of Provincial Administration, Immigration Bureau, Department of Business Development, Department of Employment, and Department of Special Investigation.

They discovered that several businesses and hotels were operating without licences and lacked valid construction or building modification permits.

Authorities also examined the shareholding structures and found clear indications of suspected nominee arrangements.

The shareholding structures showed 49 per cent ownership by Chinese nationals, while the remaining 51 per cent was registered under the names of their Thai wives.

Investigations later found the wives were unaware their names had been used for registration, and were unaware of payments connected to the businesses.

Deputy Interior Minister Polpheer Suwannachee said the investigation uncovered serious fire-safety violations and illegal foreign workers, some of whom were allegedly working in jobs reserved for Thai nationals.

But the minister said the 'most shocking' find was that some business owners paid bribes to police and local officials to avoid prosecution.

Police said they have collected evidence, including audio and video files, and will investigate the government officials implicated.

Polpheer also said the Department of Lands would inspect property ownership and title deeds linked to the investment groups.

Any land found to have been acquired illegally or held through nominee arrangements would face immediate title revocation and forced sale, he said.

He added that the operation would be expanded nationwide to cover all provinces.

The minister said: ‘Regarding legal proceedings against state officials allegedly involved in soliciting benefits, the Department of Provincial Administration has been tasked with coordinating with the agencies named to establish a committee to investigate the facts.

‘At the same time, the Ministry of Labour will submit all details to Prime Minister Anutin Charnvirakul to order further action at the ministerial level.

‘Furthermore, tomorrow I will prepare to present the full operational report to the Prime Minister.'

Last month, Thailand's Central Investigation Bureau raided housing estates across Bangkok over a suspected Chinese nominee network allegedly holding the properties to make a 'Chinese village'.

The network was reportedly led by Chinese national Hao Deng, who had acquired dozens of luxury homes worth more than 1.275 billion baht.

Thai women Piyanuch and her mother Sakhon were arrested alongside Hao. They claimed they helped the Chinese man establish nominee companies to set up the real estate empire.