"Former deputy prime minister Somkid Jatusripitak is likely to lead the new party in order to ensure the continuance of the country's administration," Chuchai said.

Chuchai, a former Thai Rak Thai executive member, vowed to continue to represent his constituents from Surin.

He also voiced optimism that former Thai Rak Thai MPs would run under the new party's banner.

Thai Rak Thai member Theppanom Siriwithayarak said he doubted if the faction could successfully launch a new party.

"At the latest dinner party, less than 60 faction members showed up and I see this as a lowering of support for the new party," he said.

Theppanom claimed the majority of former MPs were having second thoughts about leaving the party because they still believed in the comeback of ousted premier Thaksin Shinawatra.

Cabinet okays anti-graft bill

The Cabinet yesterday approved new legislation intended to wipe out corruption by politicians and senior state officials, a Prime Minister's Office minister said yesterday.

Thirapat Serirangsan said the bill would be forwarded to the National Legislative Assembly, which was expected to consider it by next month.

The bill provides a maximum punishment of 15 years in jail and a fine of up to Bt600,000 for those convicted of conflict of interest, allegedly widespread during the administration of deposed prime minister Thaksin Shinawatra.

It will forbid politicians or government officials, along with their spouses, relatives or dependants, from bidding for state projects.

The National Counter Corruption Commission can halt projects if 5,000 people - or 50 members of Parliament - suspect a conflict of interest.

Police 'have clues' on bomb suspects

Police do have clues about who was behind the bomb attacks in Bangkok on New Year's Eve but are gathering more evidence to implicate and prosecute them, assistant national police chief Lt-General Jongrak Juthanont said yesterday.

"They are the people the public have been suspicious of, but police cannot yet take any action against them without evidence," he said, without giving further details.

Jongrak, the lead investigator handling the case, also pleaded with eyewitnesses or those who saw the suspected bombers before the explosions to volunteer information to police.

The officer said police were also analysing the credibility of much-publicised information from political activist Chanaphat na Nakhon, who indicated that the possible suspects behind the attacks were linked to "those in old power".

Chanaphat cancelled a meeting with police yesterday. He was supposed to show police documented evidence, which he claimed contained money-transaction details between the coordinators of the attacks.

Explosion victims seek compensation

Victims of the 1991 chemical explosion in Bangkok's Khlong Toei area yesterday appealed for the Justice Ministry's help in getting the Public Health Ministry to pay compensation.

Tassanee Phrombutr said a Cabinet resolution on May 14, 2002, had agreed to set up an occupational medicine and environment centre to rehabilitate 105 chemical-affected residents, but no such centre had been built.

In March 2005, the Budget Bureau approved compensation but victims still could not get the money, she said.

Later on, they learned that the Public Health Ministry no longer had the money because it had allocated it to help others in need, including tsunami-affected people, Tassanee added.

Suwana Suwanjutha, director-general of the Justice Ministry's Rights and Liberties Protection Department, accepted their appeal and said she would contact the Public Health Ministry to solve the problem as soon as possible.