CABINET RESIGNATIONS MAY LEAD TO THAI COUP

C O N F I D E N T I A L BANGKOK 005077 SIPDIS SIPDIS NSC FOR PHU E.O. 12958: DECL: 09/24/2017 TAGS: PGOV KDEM TH SUBJECT: CABINET RESIGNATIONS MAY LEAD TO THAI COUP LEADER'S APPOINTMENT Classified By: Ambassador Ralph L. Boyce, reason: 1.4 (b) and (d). ¶1. (U) On September 20, an official of the National Counter Corruption Commission (NCCC) reported publicly that three cabinet members held significant stakes in private companies. Following the disclosure, Information and Communications Technology Minister Sitthichai Pokai-udom and Deputy Commerce Minister Oranuj Osathananda announced their resignations. Interior Minister Aree Wongarya, the third figure identified by the NCCC, said he would discuss his situation with Prime Minister Surayud Chulanont, after Surayud's return from the UNGA session in New York. ¶2. (U) The 1997 Constitution compelled cabinet members with significant holdings in private companies to place their shares in a blind trust. The 2006 interim constitution, which was much less comprehensive, contained no similar provision. The 2007 Constitution imposed more stringent limits on the financial activities of legislators and cabinet ministers, as well as their spouses and children, but its transitory provisions exempted members of the current cabinet. Although Sitthichai, Oranuj, and Aree appear not to have broken the law, some Thais saw their previously undisclosed holdings as tainting a government that came into office after a coup allegedly motivated in part by the corruption of deposed Prime Minister Thaksin Shinawatra. ¶3. (C) COMMENT: With Army Commander Sonthi Boonyaratglin due to retire on September 30, there has been much speculation that Sonthi might enter the cabinet. The resignations provide justification for a limited cabinet reshuffle, which could include an important position for Sonthi. While most speculation has focused on the possible creation of a new Deputy Prime Minister position that would handle security affairs, Sonthi might also aim to replace Aree, which would enable him to exercise significant influence during the coming election. (The Interior Minister has a nationwide network that extends from the provincial governors -- who report to the Minister -- down to the grassroots level.) Nevertheless, when we contacted an NCCC official to ask about the resignations, he insisted that the timing of the NCCC revelations was not linked to Sonthi's impending retirement. BOYCE