Villagers File DSI Complaint Over Funeral Fund Scam Worth 1.4 Billion Baht

Picture courtesy of Matichon 

More than 100 residents from Maha Sarakham province gathered today at the Department of Special Investigation (DSI) headquarters in Bangkok to file a formal complaint, calling for an investigation into an alleged large-scale fraud involving a funeral welfare association and a local welfare fund. The total estimated losses exceed 1.4 billion baht.

The group, led by Mr. Banchart Jansuwan, honorary adviser to the Senate Committee on Legal and Justice Affairs, and legal representative Mr. Siri Ekchote of the Legal Environmental Protection Association (LEPA), submitted the petition to Pol. Lt. Col. Yuthana Praedam, Director-General of the DSI. The letter demands a probe into the actions of the Wapi Pathum District Funeral Welfare Association and the Wapi Pathum Welfare Fund.

According to Mr. Banchart, the victims fall into three categories:

1. The deceased: Around 4,800 members who had paid their funeral premiums but whose families never received compensation.

2. Former members: Thousands who stopped payments in August–September 2023 after suspecting mismanagement. In October 2023, the registrar ceased further payouts, disqualifying many.

3. Current members: Over 20,000 who are still contributing monthly but have seen the fund abruptly stop receiving or disbursing money. Many are now seeking refunds, feeling they were misled.

Concerns have also been raised about the association’s lack of transparency. In 2022, while claiming to have collected over 200 million baht from its 40,000 members, only 53 million baht was paid out. The destination of the remaining funds remains unknown.

The scandal is further complicated by the fund’s heavy promotion, with advertisements posted online and agents visiting funerals to recruit new members. Promised payouts of up to 400,000 baht per death attracted elderly and vulnerable individuals, many of whom were in poor health or of advanced age. Despite this, the association continued to accept applications and monthly fees, 400 baht per fund.

Mr. Banchart said the pattern of operation raises concerns about a potential Ponzi-like structure. The association allegedly encouraged relatives of deceased members to recruit new members in order to receive death benefits, further undermining confidence in the scheme.

He also questioned the credibility lent by the fund’s leadership, many of whom are retired civil servants, teachers, or former school directors, giving the operation an appearance of legitimacy that misled the public.

Calculations suggest that with 45,000 members paying 400 baht monthly, the fund should have seen annual revenues exceeding 400 million baht, totalling into the tens of billions nationwide. Yet many grieving families have received no payment at all.

The association and fund reportedly operated from the same office as a cooperative which also accepted savings deposits. Victims were allegedly told they could not withdraw their cooperative savings unless they first resigned from both the funeral association and the welfare fund, causing further complications and discontent.

Mr. Siri Ekchote urged the DSI to classify the matter as a special casedue to the complex and potentially nationwide impact. He argued that justice must still prevail and that the case warrants full legal and financial scrutiny.

Ms. Maliwan, 54, a member since 2018, said she had placed her hopes on the death benefit to help support her family, only to be left devastated. Despite making regular contributions, she was never informed of problems until the fund was shut down. “I just want justice,” she said, “but the police investigation has gone nowhere, and the prosecutor claimed the case was too weak. That’s why we’re here today.”

The DSI has acknowledged receipt of the complaint and supporting evidence. A decision is expected soon on whether the case will be accepted as a special investigation.

  Adapted by Asean Now from Matichon 2025-05-30.