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Thai PM Chavalit reshuffles cabinet

| Source: REUTERS

Thai PM Chavalit reshuffles cabinet

BANGKOK (Reuter): Thai Prime Minister Chavalit Yongchaiyudh announced a cabinet reshuffle yesterday, affecting 10 ministers in his eight-month-old coalition government in an apparent move to shore up its sagging popularity.

In a statement signed by Chavalit, two outsiders, conservative economist and former finance minister Virabongsa Ramangkura and communications tycoon turned politician Thaksin Shinawatra, became deputy premiers.

The cabinet changes involved eight ministers and deputy ministers from Chavalit's New Aspiration Party (NAP) and two from his major coalition partner, the Chart Pattana Party of former premier Chatichai Choonhavan.

He promoted Chingchai Mongkoltham, a minister in the Prime Minister's Office, to education minister replacing Sukavit Rangsitphol, whom the opposition had accused of corruption in his policy to equip government schools with computers.

Sukavit, who has denied the charge, retained his concurrent job as deputy premier.

Some analysts saw the reshuffle as falling short of market expectations, saying it was too limited to ease mounting criticism of a government struggling to tackle Thailand's worst economic turmoil in decades.

The Thai economy is projected to grow about 2.5 percent to 3 percent this year, its slowest since at least the early 1960s and compared with 6.4 percent in 1996.

"It could only help the government's image in the short term but I don't see any real progress. This is just an image boosting exercise, a move by Chavalit to buy time for his government," Adkinson Securities' Virachai Krongsamsee said.

Chavalit himself has faced calls from the press, university lecturers and the public for his resignation as Thais voiced anger over a government decision to raise value added tax to 10 percent from seven from Aug. 16.

The prime minister was also criticized for a government move to suspend more than half of Thailand's 91 finance companies since late June as Thailand adopted tough economic reform measures in exchange for a $17 billion international bailout package sponsored by the International Monetary Fund.

As part of the reshuffle, Chavalit also switched yesterday the jobs of University Affairs Minister Montree Danpaiboon and Labor and Social Welfare Minister Chatchai Eartrakul.

He also named Deputy Interior Minister Kiatchai Chaichavarat as a minister of the Prime Minister's Office.

The rest of the changes involved deputy ministerial portfolios in various ministries.

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