Governor Wichai Praisa-ngob received a letter from the Human Rights Commission detailing the complaints. As he is retiring within days, he ordered the Director of the Kathu Sub-district, Siripat Patpakul, to investigate.
Khun Siripat called a crisis meeting on Wednesday.
The letter said complaints had been received from tourists about lack of public parking on the Patong beachfront where car and motorcycle rentals had taken control, the scratching of private cars that parked in controlled spots, high fares in metered and non-metered taxis, and payments by illegal immigrants to police.
Preechavude ''Parb'' Keesin, president of the Patong Taxi Federation, said that the federation was happy to cooperate with the investigation and follow all regulations. The federation has organised many Patong tuk-tuk, taxi, minivan and motorcycle riders and attempted to apply a uniform code of conduct.
However, hundreds of other illegal taxis and operators of all kinds remained outside the group, Khun Parb said.
It is understood the letter from the Human Rights Commission used the word ''mafia.''
Khun Siripat said the letter complained of at least one case where a person who had parked in a contentious spot on the beach road had had their vehicle badly scratched in retaliation. Concerns about individuals using public parking spots to conduct their businesses extended beyond beach road to Rat-U-Thit 200 Pi Road, one block back, said Khun Siripat.
Allegations against the police included the taking of bribes from Nepalese, Indians, and Burmese workers in Patong, Khun Siripat said. It is believed illegal labor makes up a large proportion of poorly-paid retail workers in the west coast destination.
Khun Parb said the federation had clearly specified parking zones but only the police had the power to stop abuses and solve the problem.
Complaints in the letter included accounts of metered taxis being used with the meters being turned off.
The Deputy Superintendent of Kathu Police Station, Colonel Pradya Jansomwong, undertook to investigate the matters further with the assistance of the Transport Department.
The meeting also heard that revisions to Patong's one-way roads system have yet to receive final approval.