Thai court dismisses PM Srettha over cabinet appointment

Real estate tycoon Srettha becomes the fourth Thai premier in 16 years to be removed by verdicts by the same court, after it ruled he violated the constitution by appointing a minister who did not meet ethical standards.

Srettha’s removal after less than a year in power means parliament must convene to choose a new premier, with the prospect of more uncertainty in a country dogged for two decades by coups and court rulings that have brought down multiple governments and political parties.

The same court last week dissolved the anti-establishment Move Forward Party, the hugely popular opposition, ruling its campaign to reform a law against insulting the crown risked undermining the constitutional monarchy. It regrouped on Friday under a new party.

Srettha’s Pheu Thai Party and its predecessors have borne the brunt of Thailand’s turmoil, with two of its governments removed by coups in a long-running grudge match between the party’s founders, the billionaire Shinawatra family, and their rivals in the conservative establishment and royalist military.

The decision could rock a fragile truce between political heavyweight Thaksin Shinawatra and his enemies among the conservative elite and military old guard, which enabled the tycoon’s return from 15 years of self-exile in 2023 and ally Srettha to become premier the same day.

Srettha had maintained his appointment of former Shinawatra lawyer Pichit Chuenban, who was briefly imprisoned for contempt of court in 2008 over an alleged attempt to bribe court staff, was above board. The bribery allegation was never proven and Pichit resigned in May.

Deputy premier Phumtham Wechayachai is expected to take over as caretaker prime minister.

Return of the Shinawatras?

According to some political experts, it is likely Pheu Thai would still have the clout to lead the next administration, after a period of horse-trading and uncertainty over who will be in charge.

“The coalition remains united,” said Olarn Thinbangtieo, deputy dean of Burapha University’s Faculty of Political Science and Law.

“There may be some impact on confidence, but that would be in the short term.”

The next premier would need to have been nominated a prime ministerial candidate by their parties prior to the 2023 election, with Thaksin’s 37-year-old daughter and party leader Paetongtarn Shinawatra among Pheu Thai’s options.

If successful, she would be Thailand’s third Shinawatra premier after Thaksin and her aunt, Yingluck Shinawatra.

Other potential candidates include Interior Minister Anutin Charnvirakul, Energy Minister Pirapan Salirathavibhaga and Prawit Wongsuwan, an influential former army chief who was involved in the last two coups.

The court decision comes at a tricky time for an economy that Srettha struggled to jumpstart, with weak exports and consumer spending, sky-high household debt and more than a million small businesses unable to access loans.

The government has estimated growth of just 2.7% for 2024, lagging regional peers, while Thailand has been Asia’s worst-performing market this year with its main stock index .SETI down about 17% year-to-date.