'Lies' fall-out hurts more than Kittiratt's image

This controversy could even cost him his job of heading the government’s economic team.

 

Prime Minister Yingluck Shinawatra has insisted she has no plan to replace Kittiratt, who is also a deputy prime minister. “I have no [other] people to help me with economic matters,” she said.

 

Former premier Thaksin Shinawatra, who is Yingluck’s big brother and believed to be pulling strings behind the ruling party, has reportedly been unhappy with Kittiratt’s performance in dealing with the rising cost of living and other economic problems. 

 

However, Yingluck insisted she wanted Kittiratt to remain as her economic czar. She is more comfortable working with Kittiratt, who is considered her friend and trusted adviser on economic matters. 

 

It has yet to be seen if the prime minister, for the rest of her time in office, can resist mounting pressure for her finance minister to be replaced.

 

Last Thursday, Kittiratt admitted that sometimes he had to exaggerate the country’s economic growth in public statements, even though the government had been fully aware the global economic slowdown was likely to affect Thailand. 

 

“The finance minister needs to lie sometimes to create good feelings. The world knows this as a ‘white lie’. As leader of the government’s economic team, I’m allowed to tell white lies. The goal is to create confidence, which in turn benefits the country’s economy as a whole,” he said.

 

His move came after the National Economic and Social Development Board, the state planning agency, revised down its forecast for export growth to 7.3 per cent this year due to a slump in the global economy, compared to the government’s earlier projection of a 15-per-cent increase. 

 

The prime minister early this week defended her finance minister, saying she had faith in him and believed he had good intentions towards the country. 

 

Kittiratt is part of a small group of politicians working closely with the prime minister. This group also includes Suranand Vejjajiva, who was recently appointed as the PM’s new secretary-general. Kittiratt meets the PM regularly at Government House and often reports on the economic situation during weekly Cabinet meetings.

 

Yingluck’s trusted team of economic advisers, with Kittiratt included, is being threatened by the rising influence of rival groups closely connected to Thaksin. 

 

The PM’s more senior economic advisers, handpicked by Thaksin, have complained that the prime minister has ignored their counsel. Another group of economic experts who completed their five-year political ban a few months ago is expected to join the fight for Cabinet seats in an upcoming reshuffle, likely next month, ahead of a censure debate or sometime in October. 

 

These ex-Cabinet members include former deputy finance minister Warathep Ratanakorn and former energy minister Prommin Lertsuridej. The economic experts who were replaced in Yingluck’s first Cabinet reshuffle – Olarn Chaipravat and Mingkwan Sangsuwan – are also seeking to make a return.

 

In addition to the rising competition, the PM’s trusted team of economic advisers has its own weaknesses. Due to their lack of experience and political prowess, they have become easy targets for political attack.

 

The worsening economic problems, particularly the higher cost of living, are undermining the government’s credibility. The opposition Democrats have blamed government inefficiency for the problem of “expensive throughout the land”.

 

Political observers have pointed out the issue of rising costs – in addition to the corruption problem – is becoming the government’s major weak point and threatens its survival.