Thai Court Clears Democrat Party of Election Fraud in Victory for Abhisit
Thailand's Prime Minister Abhisit Vejjajiva
Kiyoshi Ota/Bloomberg
A Thai court dismissed charges that Abhisit Vejjajiva’s ruling Democrat party misused state campaign funds, clearing one of two cases that may see him become the third leader forced out since the 2007 election.
A Thai court dismissed charges that Abhisit Vejjajiva’s ruling Democrat party misused state campaign funds, clearing one of two cases that may see him become the third leader forced out since the 2007 election. Photographer: Kiyoshi Ota/Bloomberg
A Thai court dismissed charges that Prime Minister Abhisit Vejjajiva’s ruling Democrat party misused state campaign funds, clearing one of two cases that may see him become the third leader forced out since the 2007 election.
The Election Commission’s petition to dissolve the party was “unlawful because they took more than 15 days to file the complaint to the court,” Constitutional Court judge Udomsak Nitimontree said in a live television broadcast. Stocks and the baht both rose after the ruling.
The Democrat party also faces dissolution on separate charges it accepted an illegal 258 million baht ($8.5 million) donation from TPI Polene Pcl, the nation’s third-biggest cement maker. That case, which hasn’t begun hearings yet, could still disqualify Abhisit, who took power in 2008 after a court disbanded the ruling party tied to ex-leader Thaksin Shinawatra.
Today’s verdict may fuel discontent among Thaksin’s supporters as they aim to unseat Abhisit in an election he must call next year. A period of calm since the military ended deadly protests from the pro-Thaksin Red Shirts in May has made Thai assets among the world’s best performers this year.
“Society must accept the constitution process, the judicial process,” Abhisit told reporters today after the verdict. “We are prepared to handle whatever will happen.”
Stocks Gain
Thailand’s SET Index, which has gained the most in Asia this year after Sri Lanka and Indonesia, rose 1.7 percent after the court ruling. The baht, which has strengthened the most this year among Asia’s 10 most-traded currencies outside of Japan, erased earlier losses.
“Thailand’s political risk is reduced big time with today’s ruling,” said Andy Pornprinya, senior vice president for regional institutional sales at UOB Kay Hian Securities (Thailand) Pcl in Bangkok. “This will further strengthen business and consumer sentiment because they are now more confident about the government’s policy continuation.”
The Constitutional Court ruled four-to-two today to dismiss charges that the Democrats misused a 29 million baht grant from the Election Commission for campaigning in a 2005 election. Three of nine judges excused themselves from the case after video clips posted on Youtube last month showed a meeting between a Democrat party lawmaker and a court official.
The video footage added to claims from Thaksin’s supporters that Thailand’s judicial system is biased. Allegations that Thaksin’s supporters were subjected to harsher court rulings than his opponents helped fuel political protests this year.
‘Upper Hand’
“There will be pressure from the Red Shirts about judicial double standards,” said Somjai Phagaphasvivat, a lecturer at Bangkok’s Thammasat University. “The tension won’t be as high as earlier this year because the government has the upper hand working in unity with the military to handle any protests.”
Abhisit took power in a December 2008 parliamentary vote after a court disbanded the pro-Thaksin ruling party for election fraud under rules written in the post-coup constitution. Thaksin’s supporters have protested against his rule ever since, leading to violence that has claimed 95 lives and injured more than 1,000 people this year.
The constitution was written by a military-appointed panel after the 2006 coup. It allows a party to be disbanded and its leaders banned for five years if one executive board member is found guilty of a crime.
A ruling against the Democrats “would mean the whole establishment would be in trouble,” said Chaturon Chaisang, a former Cabinet member in a Thaksin-led government.
Constitutional Changes
Abhisit dropped consideration of a proposal by the reconciliation committee he formed after this year’s violence to change that clause and make it harder to disband political parties. Lawmakers approved two minor constitutional changes last week, and Abhisit plans to shelve any further amendments until after the next election.
The Democrat party has implemented programs to refinance loans and guarantee crop prices in a bid to win the most seats in an election since 1992. Poorer voters in Thailand’s northeast have helped Thaksin and his allies win the most seats in the past four elections.
To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net; Anuchit Nguyen in Bangkok at anguyen@bloomberg.net.
To contact the editors responsible for this story: Bill Austin at billaustin@bloomberg.net
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