Pridiyathorn

Export-Import Bank of Thailand (Exim Bank) chairman Virabongsa Ramang-kura is being hotly tipped to replace MR Pridiyathorn Devakula, whose resignation as deputy prime minister and finance minister threatens to snowball into a full-blown crisis for the government.

Virabongsa reportedly has just resigned from the Exim Bank board, whereas other candidates to replace Pridiyathorn directly or indirectly denied they had been approached for the hot-potato job.

Pridiyathorn's resignation seemed to stun Prime Minister Surayud Chulanont, who refused to talk to reporters yesterday. However, the he was said to be planning a press conference for today.

Earlier speculation on the finance-portfolio replacement revolved around Deputy Prime Minister Kosit Panpiemras. Other possible contenders include Ekamol Khiriwat and Prasarn Trairatvorakul, but reports said both men denied having been approached.

Ekamol is a former deputy governor of the Bank of Thailand, and Prasarn is president of Kasikorn-bank.

Pridiyathorn announced his resignation yesterday. He quit with a stinging parting shot, suggesting he did not want to work with certain ministers whom he claimed worked in favour of a certain media group.

"I have already submitted my resignation to the prime minister. My decision is also based on the fact that they [certain ministers] are working for the benefit of a certain media outlet," said Pridiyathorn.

This government has shown several indications it is working under the influence of that media, he said, adding that such favours could lead to legal violations.

He did not identify the media group.

He also referred to the government's recent appointment of Somkid Jatusripitak, a former deputy premier in the Thaksin government, to chief of the economic panel responsible for explaining the sufficiency economy to the international community.

Pridiyathorn and Somkid were known to be at odds over economic policies.

Somkid resigned from the post after about a week, but his appointment triggered lingering rumours about Pridiyathorn's future in the Cabinet.

"It is not practical or reasonable to appoint a person in the Thaksin government to help this government with the sufficiency economy," Pridiyathorn said.

The reason for the appointment was only an excuse and a bid to cover up a hidden agenda that included a relationship with the Thaksin government, he said.

"This issue has already ended but in an ambiguous way. And the connection with the previous government continues. It is because a person with contacts with the Thaksin government is still holding a position in this government," he said.

The resignation rocked the embattled government, which is expected to face increasing political and economic pressure.

Once considered one of the biggest assets of the post-coup government, Pridiyathorn became somewhat of a liability following two major misfortunes in implementation of economic policies.

The stock market crashed last December after the government imposed a tough measure to control capital inflows in a bid to contain the baht's appreciation.

Shortly after, the foreign business community was up in arms about the government's plan to amend a draft of the Foreign Business Act in a bid to solve the long-term problem of misuse of local nominees.

Manager Daily newspaper, owned by influential media tycoon Sondhi Limthongkul, known to be a political rival of Pridiyathorn's, has constantly attacked him.