Bangkok travel agency suspected of breaching FBA with nominee

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Travel agency suspected of breaching FBA with nominee
PETCHANET PRATRUANGKRAI
THE NATION

BANGKOK: -- A Bangkok travel firm is suspected of breaching the Foreign Business Act by having a Thai nominee to hold a majority share in the company, according to the Business Development Department.

Pongpun Gearaviriyapun, director-general of the department, said the tour agency was suspected of having Chinese principals, while employing a Thai to hold a majority share to get around the law.

She said that in cooperation with the Department of Special Investigation, her agency investigated 15 suspect firms, one of which is highly likely to have breached the FBA. Pongpun's department is preparing to file that case with the DSI for a more in-depth probe.

The Business Development Department has asked the company's shareholders to speak to the agency's legal officers. The department will also be questioning the company's directors and examining their documentation. If any have committed offences, their cases will be forwarded to state agencies for prosecution.

If found to be breaching the FBA, foreigners and Thai nominees could be subject to fines of Bt100,000 to Bt1 million and/or three years in prison.

In cooperation with the Tourism Ministry, the Commerce Ministry's Business Development Department this year is closely scrutinising the travel industry, and not just in Bangkok. It is also concentrating on Pattaya, Phuket, Hua Hin and Chiang Mai.

Although it is stringently overseeing companies' share structure, the department will relax some regulations, unlocking some businesses such as banking and insurance from the FBA's Annex III.

Under the Foreign Business Act of 1999, Thailand does not allow foreign interests to hold more than 50 per cent of some types of businesses, such as telecommunications, rice milling, property development, media and tourism services. However, some foreigners have used Thai nationals as nominees to run such businesses.

The businesses listed in Appendix III of the FBA cover those in which Thais are not yet ready to compete with foreigners. Businesses protected for Thais include those in the retail and wholesale sectors.

Source: http://www.nationmultimedia.com/business/Travel-agency-suspected-of-breaching-FBA-with-nomi-30254223.html


-- The Nation 2015-02-17

[noitom]

They should be handcuffing the Thai stockholder and parading him, perp walking him, to set an example. Indict him, put him on trial, jail, steep fine, and permanent conviction. Deport the Chinese. If Thais don't do this, then no one will take their crime busting seriously. The Thai press should be all over this.

[trogers]

I would use the case of AIS as a barometer.

[maidee]

when this bull going to stop

thais can buy big businesses / houses / companies in the west

[CNXBKKMAN]

Good work clamping down on this stuff. If left unchecked there could be more foreign tourists arriving in Thailand. More hotel rooms sold. More tours booked. The list goes on.

[rickirs]

This law is raw protectionism and reinforces xenophobia in the Thai culture. More importantly, it encourages government corruption and dishonest business practices. Such issues are in the short-term minor in an emerging "banana" economy, and maybe excusable in a poor economy. Foreign investors might be satisfied as "silent" partners.

However, if and when the Thai economy once again demonstrates healthy and consistent GDP growth, foreign investors will want more access to business opportunities and investment returns. Then these issues will substantially hinder foreign investment in Thailand while Thais enjoy full equity control in other countries. Before foreign investors start to pressure their respective nations to retaliate against Thailand's business discrimination, the government needs to revoke this law.

[paddyjenkins]

They should be handcuffing the Thai stockholder and parading him, perp walking him, to set an example. Indict him, put him on trial, jail, steep fine, and permanent conviction. Deport the Chinese. If Thais don't do this, then no one will take their crime busting seriously. The Thai press should be all over this.

What, the poor, vulnerable Thai citizen was exploited by a gang of evil and greedy foreigners intent on taking advantage of Thai generosity and stealing from the less fortunate and innocent Thais. Thats always the way isn't it? Surely the foreigners should now be jailed, then deported and stripped of their assets. The company and its assets should then be handed over to the Thai, as he clearly used his Thai expertise and hard work to make it a success. The police will then rightfully deserve a portion of the proceeds as reward for their hard work in uncovering and breaking this vile foreign syndicate.

[harryfrompattaya]

Good work clamping down on this stuff. If left unchecked there could be more foreign tourists arriving in Thailand. More hotel rooms sold. More tours booked. The list goes on.

Next go after Houses in Thailand in Nominee names also all Nominee compaines

Edited February 17, 2015 by harryfrompattaya

[roquefort]

Posted Today, 11:52

CNXBKKMAN, on 17 Feb 2015 - 10:53, said:

Good work clamping down on this stuff. If left unchecked there could be more foreign tourists arriving in Thailand. More hotel rooms sold. More tours booked. The list goes on.

Next go after Houses in Thailand in Nominee names also all Nominee compaines

Why? Does your home country prevent Thais from owning land or houses?