Foundation law review spurred by donation misuse case

Outdated regulations and weak penalties need overhaul, says Interior Ministry

The Interior Ministry is reviewing laws governing foundations, citing outdated regulations and weak penalties following allegations of donation misuse involving the Goodness Foundation chaired by actress Panadda “Boom” Wongphudee.

Deputy Interior Minister Polapee Suwunchwee said on Wednesday the ministry was coordinating with the Department of Lands and other agencies to revise laws governing foundation registration, oversight and public access to financial information.

The Department of Provincial Administration currently requires foundations and associations to submit meeting records, donation and expenditure reports, and annual balance sheets online.

Deputy permanent secretary Anupong Suksomnit will examine whether the system can be expanded to disclose donors' identities and the amounts they contribute. The ministry is also reviewing penalties under the law, which was passed in 1992.

Mr Polapee said the ministry could examine financial statements submitted by foundations and demand explanations where irregularities were suspected, while the Anti-Money Laundering Office (Amlo) was responsible for tracing transactions. Foundations that fail to submit required reports or violate regulations could face dissolution, subject to court approval.

Any remaining assets would be transferred to the state unless the foundation's registration documents specified another recipient. Ms Panadda's foundation has named the Thai Red Cross Society as the beneficiary.

He said the Goodness Foundation had failed to submit meeting reports, income and expenditure statements, or annual balance sheets since its registration in 2022.

The ministry has ordered the foundation to submit the documents by Nov 10. Mr Polapee also urged public figures collecting donations through personal bank accounts to disclose contributions and keep charitable funds separate from personal finances if they were not operating through a registered foundation.

Meanwhile, police are considering charges of fraud, violations of the Computer Crime Act and money laundering against Ms Panadda over alleged misuse of donations to the Goodness Foundation. Investigators are weighing whether to issue summonses or seek arrest warrants.

Pol Maj Gen Thassapoom Jaruprat, commander of the Economic Crime Suppression Division, said police were not convinced Ms Panadda had been deceived by her husband, as she was responsible for managing the foundation's finances as its chairwoman.

However, it remains unclear whether as much as 800 million baht in donations was spent on her personal expenses.