Ratchaburi: Police from the Economic Crime Suppression Division raided a transnational coconut trading network using nominees. The Economic Crime Suppression Division (ECSD) police launched "Operation Nominee Unmasking," conducting sweeping raids at eight locations in Ratchaburi province linked to a transnational coconut trading network using nominees.
According to Thai News Agency, the Central Investigation Bureau (CIB) launched a sweeping raid on eight locations in Ratchaburi province, searching for a transnational coconut trading network operating under nominee names. The raid uncovered evidence of foreign investment using Thai identities to control agricultural businesses, manipulating purchase prices and causing a nationwide drop in the price of fragrant coconuts. This situation has severely impacted farmers in Ratchaburi and surrounding areas, despite high demand in international markets. Farmer prices plummeted from 35-50 baht per coconut to only 2-5 baht.
Pol. Lt. Gen. Krisada Kanjanlongkorn, Assistant Commissioner of the Royal Thai Police, stated that investigations revealed Chinese capital had encroached upon and taken ownership of coconut processing plants and factories using Thai nominees. They had even invaded villagers' coconut plantations and leased vacant land to plant coconuts themselves, with long-term lease agreements of up to 10 years.
Foreign entities have controlled the purchasing mechanism for fragrant coconuts, impacting pricing, sales, and exports. Fragrant coconuts are a highly popular and sought-after fruit internationally. Authorities urge the public to help monitor the situation and report any wrongdoing to the Economic Crime Suppression Division (ECSD).
Pol. Maj. Gen. Tatsapoom Jarupraj, Commander of the Economic Crime Suppression Division, stated that investigations have revealed that foreigners have infiltrated and controlled the coconut industry from the very beginning. Foreign investment groups are interfering with the coconut supply chain by establishing "disguised coconut processing plants" using Thai names as nominees. These Thais act as intermediaries, purchasing and exporting the coconuts themselves, allowing them to set prices. Orders for these operations are sent from overseas, with Chinese investors providing the funding.
During searches of eight locations, it was found that six of them operated companies with Thai nationals holding a majority stake of 51%, while the remaining shares were held by foreign nominees. It was discovered that the Thai shareholders were merely operational employees, accountants, or ordinary individuals, uninvolved in the company's management or business plans. Foreign investors then acted as intermediaries, purchasing and exporting coconuts, thus controlling the price at their discretion for overseas sales. These operations were orchestrated by investors residing in Thailand and abroad, violating the Foreign Business Act. Of the eight companies searched, 23 individuals were arrested: 6 legal entities (10 Thai nationals and 7 foreigners). A large quantity of evidence was seized, including documents related to coconut sales, coconut plantation lease agreements, accounting and tax documents totaling over 10 boxes, and electronic devices used in communication with foreign investors.
Mr. Poonpong Naiyanaporn, Director-General of the Department of Business Development, stated that the current problem of low fragrant coconut prices has led to a focus on Ratchaburi and Samut Sakhon provinces, major production areas. There are companies suspected of being fraudulent, based on registration, financial, and shareholding information, which have been forwarded to the police for investigation.
According to data from the Department of Business Development, there are currently over 900,000 registered legal entities in Thailand, with over 100,000 of them having foreign investment. This includes both genuine investments and nominee companies where Thai nationals hold shares on behalf of the foreigners.
For some professions, foreign entities are prohibited from operating, but it has been found that they are now controlling the entire supply chain from upstream to downstream, through nominees. Examples include fruit trading and land transactions. Stricter inspections will be implemented to prevent the creation of new nominee companies.