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Thai Deputy PM's Resignation Deals Blow to Confidence in Gov't
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Thai Deputy Prime Minister and Finance Minister Pridiyathorn Devakul announced his resignation from the two posts Wednesday, in an abrupt move seen as another blow to the troubled interim government.

Pridiyathorn told a press conference at the Government House in Bangkok that he had submitted his resignation letter to Prime Minister Surayud Chulanont Wednesday morning, and that the prime minister had approved the resignation, which takes effect on Thursday, March 1.

Rumors about his possible resignation had been running in Bangkok for some days, but the abrupt announcement still shocked the local media.

The former Bank of Thailand (BOT) governor was appointed last October as Finance Minister and Deputy Prime Minister in charge of economic issues of the post-coup interim government.

Though welcomed by many political and business parties when appointed, the new financial head invited wide criticism over some controversial policies. Among them were monetary measures to curb currency speculation, including the BOT's decision to impose 30-percent reserve on foreign capital inflow since last December, which promptly caused dramatic plunge at the local stock market, and amendments to the country's foreign business act, which some feared would further undermine foreign investors' confidence.

One of the reasons Pridiyathorn cited for his resignation was Surayud's decision earlier this month to appoint Somkid Jatusripitak, former finance minister and major economic architect of the ousted Thaksin administration and a close aide to the deposed prime minister, as chairman of an economic panel in chargeof explaining Thailand's "sufficiency economy" policy to the international community.

Somkid resigned from the new post just a few days after he accepted the appointment, amid strong controversy.

Pridiyathorn said the Somkid appointment was done in a manner showing lack of transparency in the government. He believed there was some hidden agenda related to the former Thaksin regime behind the appointment.

He also voiced his dissatisfaction with "a certain minister" who had acted in favor of "a certain media" disregarding the fact that the move was against the law.

Although Pridiyathorn did not name the minister in question, but it was widely understood by political analysts that he was referring to Prime Minister's Office Minister Thirapat Serirangsan.

Thirapat reportedly had facilitated the Manager media group, owned by Sondhi Limthongkul, a media tycoon known for his sharp criticism against ousted premier Thaksin, to get access to a government-controlled TV station. Appearing on a talk show, Sondhihas launched constant attacks against the current government's policies, Pridiyathorn being the prime target.

The resignation came as a shock to many parties in Thai political and business circles, who urged the prime minister to promptly pick someone competent to replace Pridiyathorn as the economic chief.

Energy Minister Piyasawat Amaranand commented that Pridiyathorn's resignation will considerably affect confidence in the government and the country's economic and investment climate, according to Thai News Agency (TNA).

Piyasawat said Pridiyathorn earned credit for having pushed for key legislation which was approved by cabinet Tuesday to amend rules and regulations of the BOT and the Securities and Exchange Commission, he said.

The Federation of Thai Industries president, Santi Wilatsakdanond, called on the Surayud government to make clarifications regarding Pridiyathorn's resignation and see to it that his replacement will be as competent and acceptable to the country's financial and economic circles.

Chairman of the Joint Foreign Chambers of Commerce in Thailand Peter Van Haren said Pridiyathorn's resignation may have underscored some degree of instability of the Surayud government as a whole and suggested the government restore the foreign investors' confidence on a long-term basis.

Van Haren said the government should stabilize the political climate so that investment and business could proceed as normal.

Former Deputy Prime Minister and Finance Minister Virabhongsa Ramangkura is seen likely to replace Pridiyathorn shortly, TNA said.

Analysts said the resignation could lead to a major cabinet reshuffle, which might help improve the tarnished image of the interim government, installed by the military Council for National Security (CNS) which staged the Sept. 19 coup last year to oust former Prime Minister Thaksin Shinawatra.

The government has been under great pressure facing multiple problems, among which are difficulties in eliminating Thaksin's political legacy, escalated insurgent violence in southern border provinces and unsolved mysteries about bombing attacks in Bangkok on the New Year's Eve, diplomatic strain with neighbor country Singapore, doubts about its recent economic and financial measures.

Polls showed a steady downhill popularity rate of the government in a five-month administration since it took office in last October.

(Xinhua News Agency March 1, 2007)

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