Tensions among govt members as possible Cabinet resguffle looms

Yingluck has expressed displeasure, especially over criticism aimed at Kittiratt Na Ranong, the deputy premier and finance minister. The premier tried to defend Kittirat when the latter talked about “white lies” concerning Thailand’s export targets.

The deepening euro-zone crisis has hit Thailand’s exports hard, resulting in a sharp drop in shipments, which are now forecast to grow just 5 per cent from the previous year’s, instead of a huge 15 per cent growth rate projected earlier.

This will significantly affect the country’s GDP growth, forecast at 5-6 per cent this year, since exports account for as much as 70 per cent of Thailand’s GDP.

Kittiratt has admitted he did not speak the whole truth about the country’s export performance for fear of causing a loss of confidence. This, however, led to sharp criticism of his integrity, even though he said he had good intentions.

Then came Pansak, chairman of the premier’s advisory council, who was seconded by ex-premier Thaksin Shinawatra to help his sister run the country. Pansak, who worked closely with Thaksin while the latter was in power, is reportedly not happy about the performance of Kittiratt, and has complained that his recommendations have been ignored by the deputy premier and finance minister.

Yingluck has not paid much attention to her chief policy advisor either, as she relies heavily on Kittiratt as far as managing the economy is concerned.

Pansak is a heavyweight in the political arena. Prior to advising Thaksin in the early 2000s, he was a chief advisor to former premier Chatichai Choonhavan.

Pansak is understood to be working closely with Thaksin and former executive members of the Thai Rak Thai Party who are now free to take up political posts after a five-year ban imposed by the court ended in May this year.

Thaksin earlier suggested that Yingluck should reshuffle the Cabinet after the ban was lifted so that there are more experienced people in her Cabinet.

However, Yingluck seems to prefer an extended delay of any Cabinet reshuffle as she tries to consolidate her own power base in her one-year-old administration.

The former business executive, who had no prior experience in politics, started her premiership as a novice, but now she is more confident and wants to run the government her way with as little as possible intervention from her elder brother, who is in exile overseas.

Kittiratt is the premier’s economic czar, backed by Dr Virabongsa Ramangkura, chairman of the Bank of Thailand, as well as a few close aides. Hence, Pansak is unhappy and would like to see a Cabinet reshuffle sooner rather than later. There is also a strong possibility that Kittiratt may lose one of his two Cabinet portfolios unless Yingluck goes out of her way to defend him.

The controversy over Kittiratt’s “white lies” is one political reason to get rid of him if there is a reshuffle any time soon. In such a scenario, former executive members of Thai Rak Thai who are still close to Thaksin could be among the top candidates for key economic portfolios, including finance, as the heavyweights view the current economic ministers as far less seasoned than themselves.

For Yingluck, the longer the delay in reshuffling her Cabinet the better for her to consolidate her strengthening power base.