Buoyed by the court's verdict, opponents of Prime Minister Thaksin Shinawatra intensified their calls for his resignation yesterday, saying the ruling confirmed their charges that he is not morally fit to continue ruling Thailand.

Apart from dealing a major blow to one of the Thaksin government's major economic schemes, the much-anticipated ruling dwelled on what critics believe are serious flaws of the administration - such as conflicts of interest, the tendency to ignore public voices in key national matters and alleged cronyism.

It was the grounds for the verdict, not the verdict itself, that sent the ruling party reeling. Thai Rak Thai insiders admitted the timing of the setback was particularly bad for the embattled prime minister, who is facing massive protests for alleged "policy corruption". The mention of Olarn Chaipravat in the court statement hammered home what the People's Alliance for Democracy (PAD), the organisers of the sit-in demonstration at Government House, has been trying to tell the public.

"The court hit where it hurts," said a Thai Rak Thai source. While the pre-verdict attention was centred on the pros and cons of the Egat privatisation, the court has sharpened the focus of the issue on the intriguing triangle of Olarn, Shin Corp and Egat.

Reaction from Thaksin, who said the government would need to go through the points that made the court suspicious of the scheme, sounded lame given the severe punches from the court.

Olarn's connection with Shin Corp and his involvement in the legal preparation for Egat's privatisation, enhanced the PAD's claims that cronyism is a big part of the Thaksin government. The court used this to doom the Egat scheme and gave the government virtually no chance to defend the privatisation process.

"The Egat listing plan has been the government's important policy all along, so when a mistake this big was allowed to happen, the prime minister must resign," said Chamlong Srimuang, PAD leader and Thaksin's friend-turned-foe.

PAD leader Sondhi Limthongkul last night called on Thaksin to take responsibility for submitting flawed laws for His Majesty the King to endorse.

 Democrat Kiat Sithi-amorn described the verdict as historic, as it touched on the issue of conflict of interest for the first time.

"The court has given us hope that we still have one agency that is accountable and reliable," he said. "But other so-called independent bodies in our system of checks and balances have to take a look at themselves in the mirror."

Media reform activist Supinya Klangnarong, who won another historic legal battle with Shin Corp for her right to speak against its alleged profiteering from government policies, also declared this was a "big slap" in the face to the Thaksin administration.

"The government has been insisting it did everything the right way. This is a big slap in its face," she said.

A floodgate of lawsuits will open, she warned, citing other policies that smack of conflict of interests such as free-trade agreements with certain countries.

"The verdict is the people's victory and it will inspire more lawsuits," she said. "If the prime minister still wants to be in office, he'd better prepared for a cascade of lawsuits."