Thailand’s Constitutional Court on Wednesday removed Prime Minister Srettha Thavisin from office, ruling that he had “grossly” violated ethical standards by appointing a former prisoner to a ministerial position. The decision has heightened the prospect of political turmoil and a shakeup within the ruling coalition.
Srettha, a real estate tycoon, becomes the fourth Thai prime minister in 16 years to be ousted by the court, highlighting the judiciary’s pivotal role in the country’s long-standing political crisis.
Srettha’s departure after less than a year in power necessitates a parliamentary vote for a new prime minister on Friday, adding to the uncertainty in a nation plagued by coups and court rulings that have brought down numerous governments and parties.
Pheu Thai, the largest party in the coalition, has moved swiftly to secure its alliance, announcing a meeting on Thursday to choose its prime ministerial candidate for the upcoming parliamentary vote.
Pheu Thai and its predecessors have been at the heart of Thailand’s political turbulence, with two governments overthrown by coups during a protracted power struggle between the party’s founders, the billionaire Shinawatra family, and their influential rivals within the conservative establishment and royalist military.
The court’s 5-4 decision to dismiss Srettha found that he had failed to fulfill his duties with integrity.
“The accused is terminated as prime minister due to his lack of honesty,” the judges stated, asserting that his actions constituted a “gross breach of ethical standards”.
This ruling marks the court’s second significant decision in a week, following the dissolution of the opposition Move Forward Party, the winner of the 2023 election, for its campaign to amend a law against insulting the monarchy. The court deemed this effort a potential threat to the constitutional monarchy.
Move Forward has already re-emerged as a new party, vowing to advance its anti-establishment agenda.
Both rulings have arrived at a critical time for Thailand’s economy, which Srettha struggled to revive amidst weak exports and consumer spending, soaring household debt, and over a million businesses facing loan difficulties.
“It’s a negative surprise. It is a direct risk to the economy,” remarked Trinity Securities analyst Nuttachart Mekmasin, highlighting the potential stalling of Srettha’s 500 billion baht ($14.3 billion) cash handout plan.
“Consumer and business confidence will be affected,” he predicted. “Spending and investment will slow down until the next government is formed.”
The government had projected growth of only 2.7% for 2024, lagging behind regional peers, while Thailand’s stock market has experienced poor performance this year. The market declined by 1.29% after the ruling before recovering to close 0.4% down.
UNCERTAIN TRUCE
Srettha expressed disappointment, acknowledging the possibility of policy changes under the next government.
“I am saddened to leave as a prime minister who was found to be unethical,” Srettha told reporters. “I performed my duties with integrity and honesty.”
The ruling could disrupt the fragile truce between Thaksin Shinawatra, a political heavyweight, and his opponents within the conservative elite and the military old guard. This truce facilitated Thaksin’s return from 15 years of self-imposed exile in 2023 and paved the way for his ally Srettha to become prime minister on the same day.
Srettha’s downfall stemmed from his appointment of Thaksin’s former lawyer Pichit Chuenban to the cabinet. Chuenban had been briefly imprisoned for contempt of court in 2008 over an alleged bribery attempt against court staff, though the allegation was never proven.
The complaint was filed by 40 former senators appointed by the military following the 2014 coup against Pheu Thai’s previous government. Srettha’s deputy Phumtham Wechayachai assumes the role of caretaker prime minister.
The United States has reaffirmed its commitment to its alliance with Thailand.
“The United States looks forward to the selection of a new prime minister as soon as possible, and a smooth transition of power,” a State Department spokesperson stated.
Political experts believe Pheu Thai is likely to retain its position at the helm of the next administration, though the identity of the new leader remains uncertain.
Anutin Charnvirakul, leader of the Bhumjaithai Party, the second-largest partner in the coalition, asserted that the alliance remains strong and that Pheu Thai should lead the formation of a new government.
“Pheu Thai is still leading the government … We have to listen to Pheu Thai,” said Anutin, who now serves as caretaker deputy prime minister.
A dealmaker with a long history of navigating Thailand’s political landscape, Anutin is eligible to be prime minister, being one of several politicians nominated as prime ministerial candidates by their parties before the last election.
Pheu Thai has two potential nominees: former Justice Minister and party veteran Chaikasem Nitisiri, and the party’s inexperienced leader Paetongtarn Shinawatra, Thaksin’s 37-year-old daughter.
Other potential candidates include acting Energy Minister Pirapan Salirathavibhaga and Prawit Wongsuwan, a staunch royalist and former army chief who played a role in two coups.