The denial that her office is corrupt follows a formal complaint filed with the central National Anti-Corruption Commission (NACC) head office in Bangkok on July 30.
The letter contains allegations regarding illegal or improperly licensed nurseries, kindergartens, tutoring centres, language schools and international schools operating without the required approvals. Yet, enforcement actions remain inconsistent, delayed or entirely absent, despite clear legal mandates and evidence provided.
The claim also raises concern that some institutions ‒ including those operating for many years without licences ‒ have recently obtained licences quickly, ahead of applicants who followed due process and applied years ago.
In contrast, licensed institutions that complied with regulations have faced excessive scrutiny and long wait times.
The irregular licensing timelines in cases such as ‘Aristotle School’ (at Land & Houses Park) and ‘Bamboo Valley Phuket’ (formerly ‘The Waldorf’, in Cherng Talay) show that both received rapid approval for licences after years of prior operation without legal permission.
The letter requested the NACC to investigate why these licences were granted so quickly, especially when other applicants ‒ often smaller, locally run nurseries ‒ face months or years of delay despite compliance.
It appears that, after public exposure and the second report released in mid-2024, certain institutions previously operating illegally suddenly obtained licences with exceptionally fast approval processes, the complaint alleged.
SPEED TEST
The complaint also follows Ms Panna’s office receiving a list of 55 kindergartens and nurseries found to be operating illegally on the island. The list was delivered to Ms Panna’s office by Phuket Provincial Hall in late December last year, but little action was taken until The Phuket News featured the issue in a page 1 story in June.
Ms Panna at that time quickly clarified that five of the self-named ‘child care centres’ had been shut down, and that two had been approved ‒ but that the remaining 48 were “undergoing review”.
Last week Ms Panna told The Phuket News that, since June, three of the remaining 48 had been approved.
However, she would not confirm whether or not any of the remaining 45 had been approved to operate.
Ms Panna said that she had been to court over illegal schools shut down, but did not clarify whether this related to any of the 45, of the original 55, that were left operating illegally.
The complaint to the NACC in what it called “Selective enforcement of closures”, noted “It is also deeply concerning that only a few small Russian centers in Cherng Talay were shut down, even though the PPEAO Director confirmed over 20 illegal institutions and MSDHS reported 9 cases. The most recent enforcement targeted a center reportedly with fewer than seven children, which may not have even required a license,” the complaint said.
Of note, Suwat Saowaran, Chief of the NACC Phuket office, confirmed to The Phuket News last week that his office had not yet received any order to investigate the complaint against the PPEAO.
DENIALS
“Every education official working here is a ‘victim of corruption’ [sic], not a participant,” Ms Panna said.
“No official has ever received any money from anyone to issue licences. We deny any instances of fraud or corruption in obtaining school licences,” she assured.
“In some cases, legal action has already been taken. Court cases are underway, lawsuits have been filed, and the PPEAO has been providing testimony throughout the process,” Ms Panna said.
“I was at the court just last week,” she added, noting that these proceedings are part of the office’s ongoing follow-up.
“Please understand and rest assured that we are working diligently and regularly conducting inspections,” she said. “We may not have publicised the matter, but both the PPEAO and the Provincial office of the Ministry of Social Development and Human Security [MSDHS] are actively working on this issue.”
TAX DODGERS
Pasit Patcharathirasith, Chief of the Phuket Area Revenue Office, declined to disclose how many illegal schools had been subject to tax collection or the total amount collected.
Mr Pasit claimed he had no knowledge of any action by his office on investigating illegal schools for tax fraud.
“I do not have that level of detail,” was all he would say about illegal schools operating in Phuket.
“We collect taxes ‒ that’s our job,” Mr Pasit said. “Our office’s role is solely to determine whether an entity has a tax liability, and if so, to collect it. If they have a taxing authority and are required to pay taxes, we collect them.
“Whether they operate illegally or not is a separate matter under another law, which the Phuket Provincial Area Education Office handles,” he added.
Mr Pasit explained that the Phuket Area Revenue Office assesses each case based on income and the legal criteria for tax exemptions.
“Licensed private schools may qualify for various tax privileges, including exemptions on certain income, but unlicensed institutions do not,” he said.
“Whenever a business generates income, taxes must be paid. But if they don’t operate properly [sic], they won’t qualify for exemptions, deductions, or privileges provided by law,” he said. “They still have to pay.”
For some reason, Mr Pasit went on to say ‒ and emphasise ‒ that the Revenue Department does not have legal powers to arrest, shut down or report illegal schools for enforcement action.
“It’s not our responsibility to arrest or report them. However, we don’t encourage people to break the law. If we were to say, ‘Oh, the Revenue Department doesn’t care about anything and just collects taxes,’ we’d be paying for the wrongdoers ‒ and that’s not the case,” he said.
The department has also turned its attention to nurseries and daycare centres to ensure they meet their tax obligations.
“Generally, schools that are established in compliance with the law receive more privileges than schools that aren’t established legally. In addition to violating other laws, they won’t receive any tax privileges,” Mr Pasit said.
NOT OUR JOB
“We investigate ‒ we don’t close schools,” Ms Panna stressed, adding that her office is actively investigating unlicensed schools and centres ‒ but does not have the legal authority to order closures.
“Our responsibility is to investigate. We cannot order anyone to close a school,” Ms Panna said. “That authority lies with the police, Immigration Bureau or other relevant agencies.”
She said investigations are triggered by petitions or complaints, after which the office checks compliance with education laws.
“When we receive a complaint, our job is to investigate. But investigating requires cooperation from many sectors. The Phuket MSDHS and the PPEAO have different responsibilities and scopes of management,” she explained.
Some schools have been granted approval after correcting issues, while others have been referred to the Phuket Ombudsman Department for legal action.
“Investigations take time. Once we process the petitions, we gradually review the details. Those that are properly filed are approved. Those that are not, we submit them to the Phuket Ombudsman,” she said.
Ms Panna also noted the challenges officers face in the field.
“We’ve encountered numerous cases ‒ from schools that have closed after our inspections to officials being threatened with lawsuits for trespassing or encroachment. Investigating these cases isn’t easy,” she said.