Phuket nominee crackdown widens after Chabad House confrontation

Thailand’s Interior Ministry has expanded inspections to more than 361 businesses across Phuket after details emerged of a confrontation at Chabad House in Patong, where an unidentified person reportedly questioned Thai officials’ authority over the premises.

According to a report published on Saturday (July 25), the person approached officials during the inspection and asked: “Don’t you know that this is Israeli territory?”

Deputy Interior Minister Polpee Suwanchawee responded: “This is Thailand. Everyone on Thai soil must comply with Thai law. No one has the right to claim sovereignty over Thai territory.”

Polpee stressed that the government was not discriminating against any nationality, source of investment or religion. Foreign residents and business operators, he added, were subject to Thai law on an equal basis.

Checks target nominee ownership and unlicensed operations

The confrontation occurred as officials from the Interior Ministry, local administrative authorities, immigration police and tourist police inspected the centre in Patong subdistrict, Kathu district.

The operation focused on suspected use of Thai nationals as nominee shareholders on behalf of foreign investors, as well as businesses operating without the required permission.

The ministry subsequently widened its inspection drive to cover more than 361 potentially high-risk businesses across Phuket. Hotels, luxury villas, restaurants and tour companies are among those targeted, together with companies suspected of disguising foreign ownership through nominee structures.

The minister pledged to prosecute offenders to the fullest extent of the law, maintaining that the campaign was intended to protect fair business opportunities for Thais and safeguard the country’s economic sovereignty.

Chabad House has undergone previous inspections

Chabad House in Patong has previously attracted scrutiny from security agencies after local business operators and social media users raised concerns that the premises had become a gathering point and might be connected to business networks serving particular groups of Israeli nationals, according to the report.

Government agencies had inspected the premises and spoken with its operators on several occasions.

Authorities cited in the report said Chabad operated under the Chabad of Thailand Foundation, which had about six or seven centres nationwide, including in Bangkok, Chiang Mai, Koh Phangan in Surat Thani, Mae Hong Son and Phuket.

The centres provide venues for Jewish religious ceremonies and festivals, as well as food and accommodation for Israeli visitors.

The Interior Ministry has maintained that the inspection campaign is not directed at religious activities, but is intended to ensure that businesses, buildings and other operations comply with Thai law.

Religious activities remain subject to Thai law

Although Thailand’s constitution protects freedom of religious practice, Phuket administrative authorities and the Internal Security Operations Command Region 4 Forward Command had previously reminded the centre that its activities must remain within the law and must not disturb public order.

Authorities also warned that the premises must not be used as a front for illegal commercial activity or to benefit foreign investors through nominee ownership arrangements.