Court ruling emboldens Pheu Thai

The ruling Pheu Thai Party was given a big shot in the arm after the Constitutional Court dismissed allegations that the party and its de facto leader, Thaksin Shinawatra, attempted to overthrow the constitutional democracy.
For Thaksin, the ruling constitutes retribution against his political opponents who have been hounding him since his return home from 17 years of self-imposed exile abroad and his stay in the comfortable confines of Police General Hospital instead of spending time at the Bangkok Remand Prison.
The court’s ruling will, certainly, boost the morale of Thaksin and the party, and will also embolden them to challenge their opponents, and move forward more aggressively for the achievement of their unfulfilled objectives.
One of them is the partial, if not complete: the control of the Bank of Thailand and, eventually, the elimination of its governor, Sethaput Suthiwartnarueput, who will leave next year after completing his term.
The central bank, under Mr Sethaput, enjoyed a smooth relationship with the administration of Gen Prayut Chan-o-cha, which stayed clear of interfering in the affairs of the bank.
But the bank’s relationship with the Pheu Thai-led government, under Srettha Thavisin, turned sour after the bank persistently refused to cut the policy rate and its objection to the use of a huge sum of money to fund the government’s “digital wallet” scheme.
With Thaksin freed from “virtual” imprisonment at Police General Hospital, the government’s pressure on the central bank appears to have been increased.
Thaksin was blunt about the change he wanted to see in the bank. In his discussion at the Forbes Global CEO Conference on Thursday night, he said he wants the bank to be more responsive to the government and that the bank is too independent.
The former prime minister also showed his disdain for the staff and executives at the bank, saying they lack experience, although he admitted they were mostly the “cream” of Thai intellectuals, being Grade A students or top-rated economists.
The party succeeded in breaching the independent territory of the bank when the selection committee, led by Pheu Thai’s cronies, picked Kittirat Na-Ranong, who is closely affiliated with the party, to be the chairman of the bank’s board. But his nomination still needs cabinet’s approval and a Royal Command.
The cabinet’s approval is likely to be as smooth as silk. But a problem may arise in the final process for royal endorsement if someone challenges Mr Kittirat’s qualification over his status as the economic advisory chairman of former prime minister Srettha.
He has also left the office for less than one year, which is against the central bank’s rule for a board chairman.
There is a warning from legal experts, among them Jade Donavanik, that Mr Kittirat’s case may bring about a repeat of when Mr Srettha appointed ex-convict Pichit Chuenban as the Prime Minister’s Office minister, which led to the disqualification of Mr Srettha as prime minister. So, Prime Minister Paetongtarn Shinawatra must tread carefully or she may end up like her predecessor.
Another unfulfilled objective which is more personal to Thaksin is the return to Thailand of his sister, former prime minister Yingluck. In a recent interview with a foreign media outlet, Thaksin said Yingluck may return home to celebrate the Songkran festival next April.
As a matter of fact, Yingluck can return home any time she wants as a Thai citizen. No administration, from past to present, has prohibited her from returning.
She chooses not to return because she does not want to spend time in jail to serve the five-year term imposed on her in absentia by the Supreme Court’s Criminal Division for Political Office-Holders for not protecting state interests over a rice pledging scheme corruption case, which had cost the state about 500 billion baht.
The big question is, how can she return without having to spend a day in prison like Thaksin. Will the “Thaksin model” be used for Yingluck? The answer is that it is unlikely because even Thaksin himself is not out of the woods yet as his case is still pending with the Election Commission.
Will the government ask for a royal pardon for her over a corruption case? What about the others currently serving long jail terms over the rice pledging scheme, such as former commerce minister Boonsong Teriyapirom and his deputy, Poom Saraphol?
When viewed in this context, Yingluck’s return is more complicated if not impossible. Yet it is premature to discuss the issue as there are still five months before Songkran and anything can happen before then.
The joint development of oil and gas in the overlapping claim area with Cambodia, within the framework of MoU44, is another controversial issue the government appears determined to achieve despite protests from nationalist groups.
Once the Thai joint technical committee, to be led by Deputy Prime Minister Phumtham Wechayachai, is set up this month, talks will commence with Cambodia.
Opponents said they have no objection to MoU44, but suggested the two sides settle on the Koh Kut island issue first because half the island is within the overlapping claim area as shown in Cambodia’s unilateral drawing of its maritime demarcation line, in violation of the International Law of the Sea.
Based on Cambodia’s maritime demarcation line, the Cambodian government does not recognise Thailand’s sovereignty over Koh Kut despite the Thai government’s insistence that the island belongs to Thailand in accordance with the Franco-Siamese Treaty of 1907. Cambodian nationalist groups also claim half of Koh Kut belongs to Cambodia.
The victory from the court ruling should not allow the Pheu Thai Party, or the government, to believe it can do whatever it wishes without heeding the voices of the people. Territorial sovereignty is a sensitive issue, particularly concerning Cambodia.
The matter can flare up into an issue that will shake the government’s stability to the core if it is not handled prudently, with national interest being the top priority.
Veera Prateepchaikul is former editor, ‘Bangkok Post’.