Ombudsman Songsak Saicheua has urged the government to step up enforcement against foreigners using proxies to do business in Thailand, which is spreading in many sectors and costing the country income opportunities.
More companies using Thai proxies are being seen in the restaurant, transport, agricultural, retail, wholesale, property and construction sectors, Mr Songsak said on Wednesday.
Their presence in the agricultural sector is a particular concern, with durian orchards a prime example.
Such activities affects the income of Thai people and government revenue, and could be linked to crime, money-laundering and illegal trade, he said.
Thailand still lacks a special law to deal effectively with foreign-controlled businesses using Thai proxies as a front, according to Mr Somsak. He recommended passage of such a law, with jail terms and fines that would increase in proportion to the value of the business.
Mr Songsak proposed that the prime minister chair a national committee to oversee a stepped up investigation of foreign-controlled orchards, including durian orchards, in provinces including Chanthaburi, Chumphon and Trat.
“Foreigners have opened wholesale markets to source fruits,” he said. “Many people are acquiring farmland and controlling logistics and trade. … Thai farmers must be trained and informed to curb land acquisition through proxies.”
Ombudsman Songsak Saicheua recommends jail terms and fines that would increase in proportion to the value of any foreign-run business found to have been set up using Thai proxies.