The Department of Business Development joined forces with Ministry of Interior Deputy Minister 2 to conduct a sweep in Huai Khwang, targeting illegal hotels, restaurants, and salons, cracking down on illegal foreign workers, and expediting investigations into nominee issues and alleged bribes to officials.
Mr. Poonphong Nainapakorn, Director-General of the Department of Business Development, Ministry of Commerce, revealed that on 9 Aug 2023, he assigned the Director of the Division for Prevention and Suppression of Illegal Business along with the department’s nominee suppression team to inspect establishments in Huai Khwang and surrounding areas. This was under the directive of Deputy Minister of Interior (MoI 2), Mr. Ponpee Suwanchawee. Four key agencies collaborated: the Department of Provincial Administration (DOPA), the Department of Business Development (DBD), the Immigration Bureau (IB), and the Department of Employment (DOE). Undercover agents were sent to stay at targeted hotels and condominiums before raids and arrests were carried out, followed by expanded investigations of other establishments as detailed below.
Officials deployed undercover agents to stay at targeted hotels and condominiums before launching raids on three daily-rental hotel and condo businesses. Registration data revealed links to foreign capital groups and suspicions of nominee arrangements as follows:
Location 1: A six-story building with 34 rooms, advertised at 1,200 baht per night, registered capital 4 million baht (registered March 2025). Directors include Chinese nationals; shareholders are 51% Thai, 49% Chinese.
Location 2: A six-story building with 48 rooms, advertised at 1,300 to 3,900 baht per night, registered capital 200 million baht (registered March 2025). Directors are Thai and Singaporean; shareholders are 99% Thai, 1% Singaporean.
Location 3: A seven-story building with 52 rooms, advertised at 759 to 1,300 baht per night, registered capital 12 million baht (registered February 2022). Directors include two Thais and one Chinese; shareholders are 96% Thai, 4% Chinese.
Preliminary checks indicate these locations were illegally converted from shophouses without permits, lack hotel operation licenses, and have substandard fire escape stairs. Additionally, five illegal foreign workers of Myanmar nationality were found violating labor laws.
Beyond hotel raids, authorities expanded investigations to four restaurants, one alcohol beverage shop, and one beauty salon. Some Chinese restaurants displayed hidden online gambling advertisements on toothpicks and tissue boxes. Most establishments were owned by Chinese nationals, employing mainly Myanmar and Shan workers. A Chinese barber was caught illegally working in a reserved Thai occupation. During a salon raid, the owner attempted to contact authorities to resolve the matter by phone, claiming to pay periodic protection fees to officials at several locations. Deputy Minister of Interior 2 ordered the Department of Provincial Administration to urgently investigate the phone numbers and names cited. If officials are found complicit, disciplinary and criminal action will be pursued to the fullest extent.
Authorities found 11 illegal foreign workers: nine Myanmar nationals—six working without permits, two working outside permitted occupations, and one failing to report employer details within legal timeframes; two Chinese nationals working without permits; and one stateless person working without a permit. Employers face charges for hiring foreigners without work permits and for employing them beyond their authorized scope.
The Department of Business Development reviewed related legal entities and found joint investment with foreigners. Hotels, food and beverage shops, and barber shops fall under the restricted business list of the Foreign Business Act B.E. 2542 (1999). These businesses are at high risk for nominee use to circumvent the law. Shareholding proportions show foreign ownership under 51%, making the companies legally Thai entities. Some Thai shareholders reported no knowledge of share acquisition or company formation, suggesting law and accounting firms arranged the companies and recruited Thai shareholders. The department has formally summoned businesses for factual explanations and related documents and will investigate land ownership if illegal holding on behalf of foreigners is found.
“On the same day, the nominee suppression team inspected seven establishments including restaurants and supermarkets on Pracharat Bamphen Road. The department issued summons for explanations, but companies ignored these requests. Some restaurants remained open while others closed. The department issued warning letters for all to respond again, stressing that continued noncompliance will result in formal charges and legal penalties,” Director-General Poonphong concluded.
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