Phuket MP Questioned by DSI Over Foreign Property Holdings

Somchai Techatawon, a Democrat Party MP from Phuket, arrived at the Department of Special Investigation at 1:00 p.m. on September 28, 2024, to provide a witness statement regarding allegations that he held real estate and condominium units on behalf of foreigners. He brought documents with him, believed to be prepared for his testimony. The case involves his name appearing as a director of a company conducting real estate and condominium business in Phuket alongside foreign nationals. When reporters tried to question him, Somchai declined to comment, saying it was not convenient to provide information before meeting with investigators, and proceeded to the Security Cases Division office on the ninth floor.

According to reports, the DSI's Security Cases Division summoned Somchai as a witness due to suspected financial irregularities in a corporate entity allegedly used as a nominee arrangement related to a law office. Investigators found that Somchai appeared to hold shares and serve as an authorized director in multiple companies, with over 30 companies registered in his name. Most of these companies do not conduct actual business but function only to hold land or condominium units jointly with foreigners.

Reports indicate that Somchai holds 99.99% of shares in inactive companies that appear focused on holding real estate worth over 100 million baht, including land and condominiums jointly held with foreigners. This raised questions about the source of capital and involvement in suspicious land transfer contracts and irregular lease arrangements. While the conduct may not yet constitute violations of the Foreign Business Operating Act of 1999, it may potentially violate the Land Code, particularly regarding nominee arrangements, as land law focuses on the intent to possess land rather than business operations.