Thai Court Rejects Case Against Thaksin in Reprieve for PM

(Bloomberg) -- Thailand’s Constitutional Court dismissed a complaint against former premier Thaksin Shinawatra and his family-backed ruling party, a major reprieve for his daughter’s less than three-month old government. The nation’s main stock index advanced.

Most Read from Bloomberg

The court will not proceed with a petition filed by an activist lawyer because there wasn’t enough evidence to back up his allegations, it said in a statement Friday. It was the first of many petitions related to Thaksin’s alleged influence on the ruling party or the government to reach the top court.

Theerayuth Suwankaesorn’s petition urged the court to order Thaksin and the ruling Pheu Thai Party of Prime Minister Paetongtarn Shinawatra to cease all alleged attempts to overthrow the democratic regime of government with the king as head of state.

For now, the dismissal eases some risks of political uncertainty and investor angst in a country still recovering from the same court’s shock August order to remove then prime minister Srettha Thavisin in an ethics violation case. The court had also disbanded Thailand’s largest opposition party Move Forward over its campaign to amend a law prohibiting defamation of the royal family.

READ: Complaints Against New Thai PM Pile Up as Old Guard Wields Power

Thailand’s benchmark stock index rose as much as 0.8% after the court statement, while the baht pared losses against the US dollar.

A two-time former prime minister, Thaksin is not a member of Pheu Thai party though he’s considered its de facto leader. Thailand’s most popular politician, Thaksin is widely seen as wielding significant influence in setting the direction for his 38-year-old daughter’s government.

Paetongtarn welcomed the court decision saying it was good news and further reinforced her government’s stability. On Thursday, the prime minister assured investors that Thailand will remain politically stable and her government would complete its term in 2027. Thaksin has been dismissive about the legal challenges as well, saying they were nothing more than noise.

READ: Thailand Seeks Foreign Investment as PM Plans for Trump Era

Since taking power in September, Paetongtarn’s government has come under great legal scrutiny over her father’s alleged control over the Pheu Thai-led government. Separately, the Election Commission has launched a probe into Thaksin’s alleged influence on the party, based on a number of petitions filed by activists and his opponents.

The Shinawatras and Pheu Thai will continue to face legal challenges from the conservative establishment that’s bidding to retain its influence after last year’s general election ushered in a civilian government, according to analysts.

“While the petitioner’s overarching accusation was somewhat far-fetched, opponents may still accuse Thaksin of breaching laws by wielding outside political influence or for other reasons,” said Peter Mumford, Southeast Asia practice head at consultancy Eurasia Group. “This could still ultimately be his and/or Pheu Thai’s undoing.”

Being under the control or influence of a non-party member is grounds for dissolution under Thai law.

Return From Exile

The 75-year-old former leader returned to Thailand last year after 15 years in exile in what’s seen as part of a deal with the royalist establishment to help conservative parties stay in power. After serving a royally-commuted jail term, Thaksin has been actively campaigning for Pheu Thai in local elections while making policy proposals to the government to revive the nation’s ailing economy.

Thaksin also faces a royal defamation case with a court set to begin the trial next year. His sister, former premier Yingluck Shinawatra, remains in exile after fleeing a court verdict in 2017.

In the statement, the nine-member court said it had voted unanimously to reject five of six allegations in the petition concerning Thaksin’s meddling in the government and the ruling party.

The judges voted seven to two to dismiss another accusation that Thaksin was colluding with former Cambodian prime minister Hun Sen to get the two countries reach a deal on exploring a disputed gas field in the Gulf of Thailand. The controversial issue has recently resurfaced, prompting domestic backlash against the government.

--With assistance from Pathom Sangwongwanich, Suttinee Yuvejwattana, Eduard Gismatullin and Lee Miller.

(Updates with comments from Paetongtarn, analyst from 7th paragraph.)

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.