"The Assets Examination Committee has frozen Thaksin's assets in accordance with graft proceedings and I had no undue influence over its decision," he said.

Sonthi said he agreed with the move and that the courts would eventually pass judgement on Thaksin's wealth.

He said his personal relationship with Thaksin has not been strengthened or worsened because of the AEC's action.

In regard to anxiety over the anticipated anti-junta protests this weekend, he said the situation would not spiral out of control because the majority of the people understood the circumstances involving Thaksin.

He urged anti-junta protesters to abide by the law in order to allow the country to move forward and voiced optimism that the crowds would "listen to reason" and not turn unruly.

Sonthi reminded his critics that their demand for his resignation was unjustified because his hasty exit would lead to even more confusion with no new constitution to bring about the elected government.

Many former Thai Rak Thai MPs have decided to mobilise their supporters to rally today at Sanam Luang to retaliate against the freezing of Thaksin's assets.

The rally date has been brought forward from Saturday and is expected to last until Sunday.

A group of 30 pro-Thaksin protesters rallied in front of the Army headquarters yesterday and threatened to commit mass suicide if Sonthi refused to meet their demand by resigning his position.

Prime Minister Surayud Chulanont said he was not concerned if the Pro-Thaksin groups stage more rallies.

"As long as they do not break the law, they can hold rallies because demonstrating is a right of the people," the premier said.  

Surayud said the government will continue to try and control the mob situation adding that the government was confident they can come to an understanding with the rally organisers.