Foreigners using Thai companies to control land on which they have built their beautiful villas are to come under attack in August when a drive to stop the use of nominees to own land gets into top gear.
The nominees, too, will face penalties, somewhat less-than-innocent bystanders as the Land Office begins it drive-by shootings, most probably in Phuket.
In a shot across the bows, Land Inspector Sriracha Charoenpanit said Thailand was one of many countries suffering from a similar problem.
“Thailand must sort this out by tightening the laws and adding stricter conditions on land ownership by foreigners. This must include penalties, for nominees as well,” he said.
In what may be a slightly hyperbolic statement at a seminar, Mr Sriracha claimed that as much of a billion rai – one third of all the land in Thailand – was now controlled by foreigners.
This posed serious dangers to Thailand, leaving Thais unable to compete, blocking them off from land ownership and even putting the nation’s food security at hazard.
The Land Inspector said Thailand’s friendly people and hospitality attracted foreigners who want to live, work and grab land. To do this they had increasingly been using Thai nominees.
New legislation is now being drafted, he said, which should be put into law in August. The new law will be similar to the anti-money-laundering legislation, he explained, and will make it easier to prosecute violators.
Thai nominees could face fines of double the current amounts, while land-grabbing foreigners would have the land seized and would then be deported. Whether they will be allowed to take their houses and villas with them was not stated.
Phuket is the hotbed for these land-grabbing criminals, he said, with Koh Samui and Koh Chang running close behind, and problems also in Pattaya, Cha-am, Hua Hin and parts of Chiang Mai and Chiang Rai.
In Phuket, he alleged, as much as 90 per cent of prime beachfront land is held illegally by foreigners through Thai nominees.
Current Thai law states that partners in Thai companies must be able to show that they have enough funds to be investors in the company, though it does not require them to show that they actually invested.
Thailand has been prone to periodic eruptions of anti-foreign sentiment related to land ownership. Most have come to little because of the lack of government personnel to follow through.
But if Mr Sriracha has his way, it looks as though west-coast Phuket could be the first area to receive visits from officialdom, with the press invited to take pictures of grim officials pointing fingers at offending land. – MCOT, The Phuket News