Thailand has urged New Zealand to take "decisive action" against an operation aimed at settling nearly 300 Thais here on grounds of religious persecution.
The call comes as the Thai businessman behind the alleged scam, Nuttapat Tamaraksaroj, also known as Dr Lee and Chris Siam, said he was giving up onthe New Zealand applications and would try to get Canada to accept the Thais.
Mr Tamaraksaroj, two exiled monks from Thailand and Northland fisherman John Hikuwai have been trying to get the group accepted legally as refugees.
The scheme, which came to light in the Weekend Herald, has been operating for more than a year.
The Thais had claimed religious asylum in New Zealand, with support from a Buddhist temple now being investigated by Thai authorities.
The Immigration Service has been investigating the validity of the applications and has already declined 12 applicants.
Thailand's Religious Affairs Department, which oversees the monkhood, and the Foreign Affairs Ministry are moving to take disciplinary steps against the temple and revoke the monks' passports.
The monks are accused of helping set up an "asylum-seeker processing company" in New Zealand.
The company is said to be controlled by the New Zealand Thammagay Buddhist Trust, which is said to offer asylum-seekers work then claim a fee of 100,000 baht ($5400).
Thai officials estimate that up to $1 million has been paid to the operation by those hoping to get refugee status.
The moves by the Thai authorities have received the backing of key Thai politicians.
The vice-chairman of the House committee on foreign affairs, Nikom Chaokittisophon, called on New Zealand to take decisive action against those behind the scam.
Respected Thai senator Chirmsak Pinthong said: "The Foreign Ministry should make it clear to New Zealand that the immigrants are not religious refugees, and the Labour Ministry should check whether the job placement company is illegal."
The Government has adopted a tougher stance in the past year, tightening visa requirements, to curb the numbers of Thais travelling to New Zealand to work illegally.
