Koh Phangan crackdown puts international hotel booking systems in the firing line as ministers uncover five unlicensed resorts, 104 suspected nominee firms, 124 land plots and a ฿16 million cannabis operation selling ฿300 certificates.
A new warning over hotels using international reservation systems to book rooms has emerged from a major Koh Phangan crackdown. Interior Ministry raids found five luxury hotels without licences, while officials targeted 104 suspected nominee firms controlling 124 land plots. Investigators also uncovered a ฿16 million cannabis operation selling ฿300 medical certificates. The expanding probe now linked to foreign investors, Thai nominees, doctors, state officials and a suspected tip-off.
Thailand’s Interior Ministry has widened its crackdown on illegal foreign-linked businesses on Koh Phangan. Friday’s operation targeted luxury hotels, nominee companies, land holdings and cannabis outlets. It also put foreign-owned international hotel reservation systems under scrutiny.
Deputy Interior Ministers Polpeera Suwannachawi and Worasit Liangprasit led the operation on August 14. The inspection began at 11 am and involved officials from several agencies. Five luxury hotels and resorts were inspected. Notably, officials found that none had the required operating licences.
Investigators also identified companies suspected of using Thai nationals as nominees for foreign owners. At the same time, officials examined online reservation arrangements used by the accommodation businesses. They found businesses offering reservations through online services owned by foreigners.
Ministers warn foreign hotel reservation systems may breach Thai law as nominee crackdown widens
Crucially, the ministers warned that hotels using such foreign-owned reservation systems could be contravening Thai law. The arrangements also raised concerns about whether taxes were being paid correctly. In response, officials were ordered to examine ownership structures and trace the flow of money.
Mr Ronnarong Thipsiri, Deputy Director-General of the Department of Provincial Administration, joined Friday’s operation. M.L. Phuthong Thongyai, Deputy Director-General of the Department of Business Development, also participated. Surat Thani provincial officials and Koh Phangan district officers joined them.
In parallel, police, public health officials and a Department of Provincial Administration special operations unit took part. Mr Chavalit Rojanarat, Surat Thani’s permanent secretary, was among those present. Koh Phangan District Chief Paisit Thongjerm also participated.
The latest raids followed continuing inspections on Koh Phangan and neighbouring Koh Samui. Those operations have already uncovered extensive suspected nominee arrangements. Officials identified 104 companies where investigations found foreigners held more shares than Thais.
Suspected nominee companies hold 124 land plots as investigators trace Koh Phangan financial links
Together, those companies own 124 plots of land. Among them is a prime ten-rai property with sea views. Separately, investigators discovered a hotel operating for four years without the necessary permits.
The Department of Land and Department of Business Development are working with the Interior Ministry. As part of this, investigators are examining company ownership, shareholders, directors and property holdings. They are also following financial transactions behind the businesses.
The investigation has uncovered complex cross-shareholding arrangements. In one case, a Thai national connected with one company appeared in nine other companies. The person served as either a director or shareholder in those businesses. However, the individual claimed knowledge of only three.
Mr Polpeera said: “The investigation revealed a complex network of cross-shareholdings.”
He added that the Thai national held positions as a director or shareholder in nine other companies. Yet the person claimed awareness of only three.
“This clearly reflects their intent to act as nominees,” Mr Polpeera said.
Foreign nominee networks face wider probe as illegal cannabis shops sell ฿300 medical certificates
Investigators have found nominee arrangements involving several nationalities on Koh Phangan. These include Israeli, Swiss, French and Lithuanian nationals. Accordingly, officials will coordinate with police, district officers and the Department of Business Development.
“We will coordinate with the police, district officers, and the Department of Business Development to investigate the financial trail,” Mr Polpeera said. He said officials would also “prosecute those involved to the fullest extent of the law.”
On another front, Friday’s operation targeted two unlicensed cannabis shops. Investigators found processed cannabis being sold illegally. The business had four branches across Thailand. They were located on Koh Phangan, Koh Samui, Phuket and Bangkok.
More significantly, officials discovered pre-signed medical certificates prepared by doctors. The certificates were being sold for only ฿300 each. Tourists could then use them to purchase cannabis. They could also smoke cannabis immediately inside the premises.
Mr Polpeera said the practice violated the law. The certificates could also serve as proof for purchases from other establishments. Investigators are now examining the doctors and other people involved.
Israeli-owned cannabis shop made ฿16 million as officials investigate wider company and doctor links
Financial records also attracted attention. Initial findings indicated revenue exceeding ฿15 million. Subsequently, Mr Polpeera said the shop generated ฿16 million in revenue last year. The bulletin said this came from selling only small amounts of cannabis.
Furthermore, investigators found other illegal products at the premises. These included jelly, snacks and smoking paraphernalia. Officials seized assets and evidence during the operation. They also ordered the shop closed immediately.
The ownership structure added another strand to the investigation. Mr Polpeera said two Israeli nationals and one Thai national owned the shop. Significantly, the Thai shareholder also held shares in nine other companies.
Officials will now examine those company links and associated financial transactions. The investigation will also cover doctors connected with the medical certificates. Other individuals linked to the operation will face further investigation.
Meanwhile, possible involvement by government officials has come under examination. Mr Polpeera raised concerns about accommodation businesses where owners or residents were absent during inspections. He also cited possible official involvement concerning the cannabis business.
Public health official faces scrutiny as suspected leak shuts illegal hotel before inspectors arrive
In particular, a municipal public health director on Koh Phangan may be implicated, according to Mr Polpeera. He instructed the district chief to investigate. Officials were also ordered to prosecute those involved where the evidence supports legal action.
Another hotel inspection raised separate concerns about a possible information leak. Officials targeted a three-storey building operating as accommodation. However, the building had permission for only one storey.
Before the operation, customers had been able to make reservations online. Yet the establishment suddenly closed when officials arrived. Mr Polpeera said this raised suspicions that information about the raid had leaked.
Consequently, he ordered the district chief to establish a committee and investigate the circumstances. The inquiry will examine whether anyone alerted the business before officials arrived.
Mr Polpeera also addressed officials involved in the continuing operation. He said government personnel must perform their duties diligently without fearing influential figures. Anyone facing intimidation should report it directly, he added.
Tougher penalties sought as Koh Phangan probe targets nominee firms, hotels and foreign booking systems
Beyond the immediate raids, Mr Polpeera is pushing for stronger penalties against illegal business operations. Proposed amendments would include imprisonment and heavier fines.
For now, investigators have been ordered to expand the financial investigation across Koh Phangan. Their work covers 104 suspected nominee companies and 124 land plots. It also includes unlicensed hotels and the four-branch cannabis operation.
Anutin visits Koh Phangan as nominee crackdown shows 68% of firms with foreign ownership links
Koh Phangan crackdown continues as Thai officials send a message. Illegal investors are not wanted
Equally, foreign-owned international reservation systems used by hotels remain a central part of the scrutiny. Ministers warned that using such systems could contravene Thai law. Officials are also examining whether the resulting income was correctly declared for tax purposes.
The investigation therefore extends across company structures, online bookings, land ownership and financial flows. It also covers Thai nominees, foreign investors, doctors and potentially implicated government officials.
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Further reading:
Anutin visits Koh Phangan as nominee crackdown shows 68% of firms with foreign ownership links
Blitzkrieg on foreign firms and enterprises on Koh Phangan continues with French owned resort busted
Russian-Chinese Koh Phangan alliance to sell drugs to foreigners. Accused entered Thailand illegally
Crackdown aimed at upending foreign business trade moves from Koh Phangan to Phuket. Four arrested
Crackdown to wipe out foreign business abuses and ownership on Koh Phangan & Koh Samui intensifies
