Six ministers are ousted

Seven portfolios change hands in big shake-up

The Democrat Party has agreed to make sweeping changes to the cabinet and remove three ministers from the administration.


Prime Minister Abhisit Vejjajiva said six or seven ministerial positions would be changed in the reshuffle.

Under the Democrat Party's new line-up approved by the 19-member executive board yesterday, the group of Puea Pandin party MPs which voted against the coalition in the censure debate on Wednesday will be removed from government, according to a party source.

The Democrat board has resolved to exclude from the cabinet Culture Minister Teera Slukpetch, Labour Minister Paitoon Kaewthong and Science and Technology Minister Khunying Kalaya Sophonpanich.

Meanwhile, three ministers from Puea Pandin will be moved out in this reshuffle. They are Industry Minister Charnchai Chairungruang, the Puea Pandin leader, Information and Communications Technology Minister Ranongruk Suwunchwee and Deputy Finance Minister Pruttichai Damrongrat.

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Four Democrat MPs _ Ong-art Klampaiboon (Bangkok MP), Niphit Inth arasombat (Phatthalung), Juti Krairerk (Phitsanulok), and Chalermchai Sri-on (Prachuap Khiri Khan) _ and the party's Education Minister Chaiwuti Bannawat of the Democrat Party are tipped to replace them (see graphic).

Chaiyos Jiramethakorn, Puea Pandin MP for Udon Thani, is tipped to replace Mr Chaiwuti as deputy education minister. Mr Chaiyos arrived at the Democrat Party late afternoon to discuss the allocation of cabinet seats to his faction.

PM's Office Minister Virachai Virameteekul, of the Democrats' quota, may take over as science and technology minister and Mr Ong-art may replace him as PM's Office Minister overseeing media affairs.

Sathit Wongnongtoey, another PM's Office Minister overseeing media affairs, keeps his ministerial position but his responsibility will change to oversee the Board of Investment and national investment affairs.

Following the board meeting, Mr Abhisit said those who have been nominated for political office will have their qualifications and background examined first.

Mr Abhisit expressed confidence the shake-up would resolve political and national problems.

The reshuffle was forced by a row between coalition parties Bhumjaithai and Puea Pandin.

Bhumjaithai, embarrassed by the outcome of the censure debate, called on the ruling Democrats to remove some Puea Pandin Party factions from the six-party coalition government.

Some Puea Pandin MPs voted against Interior Minister Chavarat Charnvirakul and Transport Minister Sohpon Zarum, both from the Bhumjaithai Party, in the no-confidence debate.

Around 11 MPs from Puea Pandin under the Pinit Jarusombat-Pairote Suwunchwee faction have been removed, including party leader Mr Charnchai, as penalties for the censure debate outcome.

The Matubhum Party has been invited to join the coalition partners.

Gen Sonthi Boonyaratkalin, leader of the Matubhum party, said yesterday he has agreed to join the coalition to maintain political stability.

However, the leader of the Sept 19, 2006 coup said that allocation of cabinet seats to his party has yet to be finalised.

With six House seats under its command, the Matubhum party is expected to get a cabinet portfolio of deputy minister, most probably finance, the source said.

Deputy Prime Minister and Democrat secretary-general Suthep Thaugsuban said yesterday he has completed his task of patching up coalition differences as assigned by the prime minister.

He said he believed the coalition's problems have been settled.

Some of the Democrats' northern MPs are unhappy about the removal of Mr Paitoon, although generally the MPs agreed with the board's reshuffle deci sions.

Mr Nipit said yesterday MPs would let the party leader and secretary-general finalise the reshuffle.

''The meeting has endorsed the nominations of myself, Mr Juti, Mr Chalermchai and Mr Ong-art as new ministers.

''The party leader and secretary-general will decide on the ministerial posts,'' he said. The reshuffle should be finalised in a couple of days.

Two outgoing cabinet members yesterday played down their removal, saying they accepted the board's decision.

''A reshuffle is nothing unusual. I have no problem with that,'' Mr Paitoon.

Mr Teera said yesterday he understood the need for a cabinet reshuffle and said he had performed to the best to his ability.

''I've made some achievements. That former culture minister Khunying Khaisri Sri-arun and social thinker Prawase Wasi have talked about my work makes me proud,'' he said.

Pornsilp Patcharintanakul, deputy secretary-general of the Thai Chamber of Commerce, said he expects to see the new labour minister tackle productivity to increase competitiveness and address labour shortages in the agricultural sector. Mr Pornsilp said more incentives should be introduced to keep workers in the farming sector. ''The workers turn away from the farm work and join the service sector such as restaurants and karaoke parlours. We should fix this urgently,'' he said.

From : Bangkok Post

Decision on cabinet reshuffle expected Friday

Whether there will be a cabinet reshuffle, and what form it would take, should be known on Friday afternoon after separate meetings of Democrat executive committee members and MPs, party secretary-general Suthep Thaugsuban said on Thursday.

Mr Suthep, deputy prime minister and the government's manager, was speaking after a meeting with Prime Minister Abhisit Vejjajiva at Government House.

Mr Suthep said he gave the prime minister details of his meetings with core members of some coalition parties about their attitudes toward being a part of the coalition government.

He said the Democrat Party would first call meeting of executive committee members on Friday to discuss a cabinet reshuffle. Later in the afternoon the party would hold a meeting of its MPs.

A decision whether to reshuffle the cabinet and, if so, how, was expected after that, Mr Suthep said.

"I have given the coalition parties some time to hold talks between themselves. As for the Democrat Party, we will hold a meeting of the executive and another of MPs before making a decision," he said.

Mr Suthep declined to say whether any of the parties in conflict may be dropped from the coalition, or whether any other parties would be invited to join.

The simmering conflict between the Bhumjaithai and Puea Pandin parties blew out after Wednesday's no-confidence vote in which some of Puea Pandin MPs voted against Interior Minister Chavarat Charnvirakul and Transport Minister Sohpon Zarum of Bhumjaithai.

As a result, the two Bhumjaithai ministers received fewer votes of confidence than Mr Abhisit, Mr Suthep and Finance Minister Korn Chatikavanij of the Democrat Party. Both, however, still received a clear majority support.

Bhumjaithai subsequently issued the prime minister an ultimatum - to chose between Puea Pandin with 14 MPs and Bumjaithai with 46.

Foreign Minister Kasit Piromya, who was also grilled by the opposition, is not an MP and does not belong to a party.

Mr Suthep said earlier in the day that he would try to mend the rift in the coalition, offering himself as a mediator in the dispute. He said there could also be other mediators if needed..

"A cabinet reshuffle may not be necessary if the parties in conflict can reach a settlement and adhere to political ethics.

"However, there will be changes to the cabinet if it is really necessary. I will do everything to make the government strong," the Democrat secretary-general said.

Mr Suthep said in the morning that he had not been able to contact the Puea Pandin Party.

He said he tried to contact Puea Pandin, both before and after the no-confidence vote, but to no avail.

Mr Suthep declined to comment on Bhumjaithai's ultimatum that the prime minister chose between Bhumjaithai and Puea Pandin, saying only that Puea Pandin MPs who voted against the Bhumjaithai ministers might have to be left out.

From : Bangkok Post

PM rejects army role in shopping mall blazes

Prime Minister Abhisit Vejjajiva insists the CentralWorld shopping mall was torched on May 19 after red shirt leaders called off their rally and before troops moved into the area.

Mr Abhisit yesterday told parliament CentralWorld was set on fire several times after red shirt leaders surrendered to police during the army operation to break up the rally.

Government forces deployed for the military operation were instructed to remain where they were.

He said none of the troops had moved to CentralWorld and Siam Square, which were later set ablaze.

An investigation would be carried out to identify the details of the arson attacks on the two shopping centres and the shootings at Wat Pathumwanaram, where six people were shot dead on the night of May19.

The prime minister saw it as unnecessary for the government forces to harm demonstrators after the rally had been called off.

There were reports that fire fighters had tried to put out the blazes at Siam Square and CentralWorld but they came under fire from a group of armed men at the Siam Paragon shopping centre, he said.

Puea Thai Party MP for Bangkok Vicharn Meenchainant yesterday said the burned buildings were in areas where the military was in control.

Checkpoints had been set up in the area to keep people from entering, the opposition MP said.

Mr Vicharn said not even MPs were allowed into the restricted areas.

The Puea Thai Party accused the government in parliament yesterday of blocking the live broadcast of the no-confidence debate to the provinces, especially the Northeast. The government denied the claim.

Lop Buri MP Suchart Lai-ngamnern and party list MP Sunai Jullapongsathorn of Puea Thai told the lower house they had received many complaints from people in provinces across the country that they could not view the televised debate on the NBT channel.

The two MPs said most of the complaints were from people living in the northeastern provinces.

PM's Office Minister Sathit Wongnongtoey, who oversees the state television channel, said he could assure the opposition that the live broadcast had not been blocked.

Mr Sathit said the broadcast problems might have stemmed from the signal transmitter and the broadcast equipment at the Khon Kaen relay station that had been damaged in an arson attack.

The NBT's changeover from the Thaicom 2 satellite to the Thaicom 5 might also be to blame for viewing problems in some areas, he said.

Mr Abhisit also said the switching of the satellites could be the cause of the NBT broadcast problems in certain areas. He said he had ordered an urgent check into the matter.

The Khon Kaen NBT station was set ablaze after the dispersal of the anti-government protest in Bangkok last month.

From : Bangkok Post

Terrorism policy to be revamped

Thai Re will offer flexibility and value

Thai Reinsurance, the country's leading reinsurer, is preparing to launch a repackaged terrorism insurance policy for local businesses.


A bus passenger looks out at the burned-out CentralWorld, the highest-profile casualty of the May 19 violence. JETJARAS NA RANONG
The new package to be launched next week, possibly called a "political violence insurance policy", would provide simple, stand-alone comprehensive coverage of property damage caused during strikes, riots, civil unrest and terrorism, said Surachai Sirivallop, chief executive of Thai Re.

"We have been overwhelmed by calls for terrorism and political violence coverage since the riots and arson attacks took place," said Mr Surachai.

"Political riots and widespread torching have also led foreign reinsurers to think twice about quoting [premiums], as such events have never happened before in Bangkok."

The army started its operation to disperse red-shirt protesters from Ratchaprasong intersection in the morning of May 19. By that afternoon riots had broken out across the city, but neither local insurance firms or foreign reinsurers were willing to issue terrorism coverage for Thai businesses.

Most insurers were initially caught off-guard when quoting prices, as the destruction caused during the riots had not taken place before in Bangkok.

Most reinsurers are now open to selling new policies to Thai businesses, but the prices have increased, he said.

Reinsurers generally draw on their historical experience to make precise estimates of expected losses and risk exposure.

Underwriters price their policies differently depending on where the business is based, the size and type of its assets and security systems in place at the property.

Terrorism insurance first emerged in the local market about six years ago. Unrest in Thailand's restive southern border provinces led Thai Reinsurance, through its partnership with Bangkok Insurance, to develop terrorism coverage for both individuals and property as an addition to personal accident and property policies.

In general, the premium for terrorism coverage was then around 0.5% of the sum insured.

The recent political violence has resulted in demonstration premiums for terrorism coverage for Bangkok retailers increasing to about 1% of the sum insured, compared with just 0.2% in 2008.

International firms were said to have increased their rates for terrorism coverage in Thailand to as much as 2%, compared with a global average of about 1%.

"Thailand is no longer the same in the perspective of international reinsurers. [The political] climate has changed, and the risk has changed," said Mr Surachai. "We also don't know what's going to happen in the future, as we expect the red shirts are likely to go underground in fighting the government."

Mr Surachai said the premium charge for a new stand-alone policy would vary from 0.5% to 3% of the sum insured based on the location's risk profile, the sum insured and the size of the property.

Bangkok Insurance and Thai Reinsurance are capable of accepting an insured sum up to 50 million baht. Sums insured beyond that amount would be subject to negotiation.

From : Bangkok Post

Back to 'normal'

Prime Minister Abhisit Vejjajiva said Sunday the country appeared to be back to 'normal' after the lifting of a curfew imposed in the wake of deadly anti-government protests.


Tourists and Thai walk a street market during a public holiday in Bangkok on May 28. Thailand's Prime Minister Abhisit Vejjajiva said Sunday the country appeared to be back to "normal" after the lifting of a curfew imposed in the wake of deadly anti-government protests.
The premier cancelled the curfew Saturday but said emergency rule was still necessary after two months of mass rallies by the red-shirt United Front for Democracy against Ditatorship (UDD) demonstrators that paralysed the capital and left almost 90 people dead.

"The situation last night was normal. Authorities will keep an eye though, then we'll consider lifting the state of emergency," Mr Abhisit said in his weekly television address.

The UDD's street rallies, broken up on May 19 in an army crackdown on their encampment in Bangkok's Ratchaprasong commercial district, sparked outbreaks of violence that left 88 people dead, mostly civilians, and nearly 1,900 injured.

In an address Saturday to foreign diplomats, Mr Abhisit said Thailand needed to "rebuild the social and economic compact between people and the government," but defended the crackdown.

"I can say that when we took that Ratchaprasong intersection, we took Bangkok back for the people," Abhisit said in the speech, which was broadcast on Sunday.

"No matter what their political views may be, I'm still confident that the majority of our people are peaceful and moderate and they were stunned and dismayed" by recent events, he said.

The premier said he was confident the situation could be resolved through the democratic process, despite a history that has seen 18 actual or attempted coups in Thailand since 1932.

"I think if something like this had happened in the past, people would probably think a coup d'etat was around the corner," Mr Abhisit said.

"Clearly this time around I think everybody is determined that the situation should and could be resolved through normal parliamentary and democratic processes," he added.

The anti-government protesters were campaigning for elections they hoped would oust the government, which they view as undemocratic because it came to power with the backing of the army after a court ruling threw out the previous administration.

Mr Abhisit had proposed November 14 polls in a bid to end the rally, but he shelved the plan because demonstrators refused to disperse.

The prime minister told diplomats he had not ruled out an early poll but repeated an earlier statement that the environment must be right for elections.

"Clearly given the way things have turned out over the last couple of weeks, the date of November 14 would now look very unlikely," he said.

Thailand declared a state of emergency in Bangkok on April 7 after protesters stormed parliament in an escalation of their street rallies.

After the May 19 army crackdown, unrest spread to several cities in the Red Shirts' stronghold in Thailand's impoverished northeast, and a curfew was imposed in Bangkok and 23 provinces, out of a total of 76.

Authorities on Tuesday extended a midnight-to-4:00 am curfew for four more nights as the government sought to restore order.

Anyone violating the curfew had faced up to two years in jail. The measures made life hard for people who usually work during the night and put a damper on the capital's normally lively nightlife.

The red-shirts, many of whose leaders have been arrested and are in police custody, are mostly supporters of convicted former prime minister Thaksin Shinawatra, who was ousted in a 2006 coup.

Celebrated for populist policies that benefited the poor, Thaksin was also accused of gross human rights abuses and corruption.

A Thai court last Tuesday approved an arrest warrant for Thaksin on terrorism charges, which carry a maximum penalty of death, in connection with the violent protests.

From : Bangkok Post