Thai PM confident of being cleared of graft

Thai PM confident of being cleared of graft

BANGKOK (Reuters): Thai Prime Minister Thaksin Shinawatra said on Tuesday that he was "very confident" of being cleared of charges of graft as the Constitutional Court began hearing the case.

Thaksin, who faces a five-year ban from politics if found guilty, did not attend the first day of the hearing.

"I believe I will receive more justice from the Constitutional Court," Thaksin told reporters after a cabinet meeting, adding that he would attend when needed.

The court is considering a ruling by the National Counter Corruption Committee (NCCC) that Thaksin deliberately concealed some of his assets when he was a minister in the 1990s. The case is expected to last at least a year.

Thaksin said the focus of the NCCC should be to "tackle corruption cases, not to get rid of those who earn money in the right way".

He admits he failed to mention all his assets in obligatory declarations in the 1990s, but insists this was an oversight. He says there is no suggestion that he profited from graft.

He admits transferring billions of baht worth of shares to family members and domestic staff -- including a maid and driver -- but says this is normal business practice.

At Tuesday's hearing, NCCC Secretary-General Klanarong Chantuek set out the evidence against Thaksin to the court. Thaksin told reporters he would attend when his presence was needed. "It is not my turn yet. Today we have to start with the prosecutors first," he said.

Thaksin was due to address the nation on Tuesday evening to unveil an economic stimulus package.

Thailand's voters handed Thaksin's Thai Rak Thai (Thais Love Thais) Party an unprecedented landslide in January general elections in spite of the NCCC indictment.

Thaksin has maintained his popularity since being elected, and while the judges say public opinion is irrelevant, it certainly makes their job more sensitive.

Analysts say the long wait for a verdict, as well as the dominant parliamentary position of Thai Rak Thai, means that there are no immediate fears about the government's stability.

"There's a general understanding it will take a number of months to run its course. At this stage it's not a significant factor for the market, but when news comes out from the hearings, it may have an effect," said Douglas Cairns, fund manager at Nakornthai Schroder Asset Management.

But Marc Lavoie, head of research at Asset Plus Securities, said the court hearing was generating unwanted political uncertainty.

"Trading is quiet and thin at the moment... I think there is a real fear that Thaksin could be thrown out, and this political uncertainty isn't good, especially because he is so popular at the moment," he added.