The issue of foreigners holding ownership of land through a company by using nominees was so rife that it was concern it would affect the national economy, Mr Songsak told officials via a teleconference broadcast from Surat Thani Provincial Hall yesterday (June 14).
The teleconference included officials from Phuket, Surat Thani, Krabi, Phang Nga and Prachuap Khiri Khan provinces.
Also joining the meeting were officers from the Region 4 branch of the Internal Security Operations Command (Isoc), which serves as the political arm of the Thai military.
Joining the teleconference in Phuket were Phuket Vice Governor Norsak Suksomboon and officials from a handful of relevant government agencies
Mr Songsak reminded officials that the Ombudsman has duties and powers according to the Organic Act on the Ombudsman, B.E. 2017, in resolving the problems of the people.
Foreigners holding or possessing land or real estate through the use of disguised agents or nominees in many provinces was causing an impact on stability, and could have wide economic and social implications, he said.
If the problem were not resolved quickly, it would cause the country serious damage, Mr Songsak warned.
The Office of the Ombudsman was investigating the issue, Mr Songsak noted. Related laws, research, articles and news from various media, including field visits to find facts, and meetings with relevant agencies and experts to gather information, along with opinions and suggestions from all sectors, were all being considered, he said.
“In this regard, we request that Phuket, Surat Thani, Krabi, Phang Nga and Prachuap Khiri Khan provinces, ISOC Region 4, provincial branches of the Lands Department, provincial offices of the Ministry of Commercial Office and Area Revenue Offices under the Revenue Department, and related agencies, are to provide information on actions taken in cases of ownership or possession of land or real estate by camouflaged agents of foreigners in the area,” Mr Songsak said.
According to an official report of the teleconference, opinions and suggestions were provided as feedback directly to Mr Songsak. However, specific details of the opinions suggestions were not included in the report.
The order from Ombudsman Songsak follows an intensive crackdown by officials on foreigners setting companies using nominees as shareholders or in positions of management.
The most recent raid saw 98 foreigners, mostly Russians, among 231 suspects arrested in raids that saw assets worth over B1.5 billion seized.
WIDESPREAD THREAT
The order also follows Mr Songsak delivering the same instructions to officials on Koh Samui, located within Surat Thani Province, on Thursday (June 13).
Speaking at the Koh Samui District Office, with 4th Army Region Commander Lt Gen Santi Sakuntanark beside him, Mr Songsak said, “The problem of foreigners owning or possessing land or real estate through disguised agents or nominees is intensifying and becoming very common. This issue is particularly prevalent in tourist and agricultural areas, with significant involvement by investors from China, Russia, India, Pakistan and Myanmar.
“Methods used include allowing Thai nationals to own land through family relationships (such as marriage to a Thai person or ownership by children), renting or purchasing through Thai nationals, setting up Thai legal entities and later transferring ownership, and using Thai entities to purchase land or real estate at inflated prices. This has widespread negative impacts on the country’s security, economy, and society,” he explained.
“The current laws are outdated and ineffective in addressing this issue. If not resolved quickly, it will cause serious damage to the country,” Mr Songsak warned.
An inspection by ISOC Region 4 reported significant changes to many hillsides and elevated areas on Koh Samui, now filled with luxury villas and houses under construction. Most of these areas are occupied by foreigners, including those from China, Germany, Russia and France, who operate through legal entities using Thai nominees as major business and real estate partners, he explained.
“This transformation is turning conservation and agricultural areas into land for building construction, destroying Koh Samui’s natural identity and environment, including land, mountains, forests, waterways and communities. Additionally, some land title documents issued on Koh Samui may be incorrect or not legally compliant, leading to the sale of land to foreign investors.”
Regarding the outdated laws, Mr Songsak stated that there will be recommendations to urgently amend the relevant laws. “One suggestion is to draft a central law specifically addressing ’camouflage’ agents and transactions, as no specific law currently covers this issue,” he said.
"While private investment and development are important, they must comply with legal regulations. Relevant government agencies should seriously address this issue and strictly enforce the laws to protect the nation’s security and interests," Mr Songsak concluded.