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Thailand probes M'sian company as 'special case'

Thailand's Department of Special Investigation (DSI) has designated a high-profile case involving a subsidiary of a Malaysian company under "special case" over allegations of infringing the kingdom's Foreign Business Act 1999.

The department can designate an investigation under "special case" according to Section 21 of The Special Case Investigation Act 2004 if it fits a profile of a serious transnational crime or crime which can negatively affect the country's economy or finances, among others.

DSI deputy director-general Col Suriya Singhakamol, who revealed the matter to Bernama, said they expected to forward their investigation paper on the subsidiary to the country's Attorney-General’s Office in November.

"We already accepted the case as a "special case" and would target the company's owner and its shareholders. We (DSI) actually have summoned the accused persons many times but they never showed up as they are always travelling and difficult to contact.

"But we will not wait for them; we will go ahead with our investigation and expect to forward the case to the prosecutor (Attorney-General’s Office) this November," he said.

About 50 Thai citizens who worked with the Malaysian company, he said, had also been summoned for questioning regarding its business operation.

Suriya also disclosed that the Malaysian company has 24 other subsidiaries in Thailand, mostly in the country's southernmost provinces and involved with various types of business, from hotel to real estate and property development, among others.

Bernama was made to understand that the investigation into the Malaysian company was over allegations of money laundering, deceiving shareholding structures of the company to hide foreign ownership of the businesses and holding plots of land (foreigners are prohibited from buying land in Thailand).

It is also accused of illegally sourcing huge sums of capital from abroad, operating businesses which can negatively impact the Thai economy, and tax evasion.

The allegations are at various stages of investigation by different Thai enforcement agencies. The DSI, which is independent of the police, operates under the Justice Ministry and performs tasks similar to the United States' Federal Bureau of Investigation (FBI).

The investigation into the subsidiary is part of a wider probe by the Thai authorities into its parent company for suspicion of conducting business activities which can be detrimental to the economic interests of Thailand.

Besides the DSI, eight other Thai agencies, namely the Anti-Money Laundering Office, Narcotics Suppression Bureau, Office of Narcotics Control Board, Revenue Department, Customs Department, Department of Business Development, Attorney General Office and Bank of Thailand, are also investigating the Malaysian company.

Recently, a group of Thai senior enforcement officers travelled to Malaysia where they met their Malaysian enforcement officers as part of the investigation into the company.

Malaysia too has set up a multi-agency task force spearheaded by the Domestic Trade, Cooperatives and Consumerism Ministry to investigate the company.

The Malaysian authorities have also raided the company's premises and frozen its accounts containing hundreds of millions of ringgit in deposits.

- Bernama

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