A pub in Huai Khwang district of Bangkok was found to have reopened without a proper licence after previously being ordered to close, with authorities also suspecting a nominee ownership arrangement.
A police officer was given ‘ghost shares’ in the business in return for helping it resolve any legal difficulties, investigators were told.
Police and a special task force from the Department of Provincial Administration raided 577 Club, also known as the ‘Huai Khwang Chinese Pub’, on on Soi Thoranin 3, off Pracha Uthit Road, at 1.30am on Saturday.
Authorities found that the venue was operating as an entertainment establishment without an apparent licence and had previously been ordered to close in August last year.
Several Vietnamese employees who could speak Chinese were found at the venue. Officials were also told that the pub placed importance on hiring staff who could communicate in Chinese.
As well, investigators found a Chinese national who appeared to have the authority to give orders to employees and intervene in problems at the venue, authorities said.
The venue also accepted payments for food and drinks through foreign platforms, including Alipay and WeChat.
The recipient name displayed for payments was 577 Club Saeng Mungkorn Thong Co Ltd.
Authorities are expanding their investigation into possible Chinese investment, nominee arrangements and financial transactions.
During the raid, 132 customers were found at the venue, including 65 Thais and 67 Chinese nationals.
Officials seized drugs found inside, while some customers, both Thai and foreign, tested positive for narcotics. They were taken into the legal process.
Authorities said the venue could face a five-year closure order.
Nominee confesses
Deputy Interior Minister Polapee Suwunchwee said an in-depth investigation found that the business was actually financed and owned by a Chinese investor, but the person listed as the legal owner was a Thai man, identified only as ‘Mr Chart’.
Mr Chart reportedly confessed that he was merely a ‘nominee’ hired to hold ownership on behalf of the foreigner, according to the minister, who was present during Saturday’s raid.
Further investigation uncovered information indicating that the venue had given ‘ghost shares’ to a police officer known as ‘DorSor Joe’.
The officer’s role was to resolve any problems the venue had with law enforcement agencies, allowing it to continue operating, Mr Polapee said.
Huai Khwang has become a major residential area for the new generation of Chinese people coming to live or work in Thailand, and is dubbed ‘Bangkok’s second Chinatown’.
Some Chinese-run businesses in the area have also faced scrutiny over nominee shareholding, illicit financial activities and gambling when authorities stepped up a crackdown this year.