Thai Court to Decide Whether to Disqualify Election Winner From Becoming Prime Minister

Thailand’s election body said it has decided to seek a court ruling on whether newly elected lawmaker Pita Limjaroenrat should be disqualified after finding that he breached election rules, posing the latest hurdle in the progressive politician’s path to become the nation’s next prime minister.

“The Election Commission found that Pita Limjaroenrat’s membership in the House of Representatives has grounds to be terminated according to the Thai constitution,” the agency said. “The matter will be submitted to the Constitutional Court for a ruling.”

The poll body is asking the court to rule whether Pita had violated the constitution by holding shares in a media company when he applied to run for office as a member of the House. The baht erased earlier gains to fall as much as 1.1% to 35.15 per dollar.
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While the Constitutional Court judges are scheduled to have a weekly meeting Wednesday, it was not immediately clear if they would immediately act on the election body’s request. In the event they do, suspension of Pita’s status as member of parliament is an option pending a final verdict on his disqualification. That may scupper the Move Forward Party leader’s chances of contesting the prime ministerial election in parliament Thursday.

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Pita was the lone candidate for the top job after his party won the most seats in the May 14 general election. Any delay in government formation arising from the poll panel action could possibly dent investor confidence and hurt new investments from overseas, according to the Thai Chamber of Commerce.

The parliament’s schedule to hold an election for premier on Thursday won’t likely be affected by the poll body’s decision, Move Forward’s secretary-general Chaithawat Tulathon said at the parliament house.

Chaithawat said Pita will still be nominated as planned, while protesting the election body’s move. He said the poll panel should have asked Pita to defend himself before submitting the case, and accused it of negligence of duty.

“Tomorrow will bring a crossroad for Thailand that will determine whether we’ll turn back to the kind of politics that doesn’t care about the people or we’ll take the chance to take Thailand forward,” he told reporters. “I believe Thai people won’t stand for it this time.”

But the legal challenge hanging over Pita makes it increasingly likely that Thursday’s vote may be postponed, said Punchada Sirivunnabood, an associate professor at Mahidol University.

“The case will have a huge impact,” Punchada said. “The timing of this gives away what it’s meant to achieve. It can also be used an excuse by senators to make a case to delay voting until there is clarity.”

The Election Commission started a probe last month following claims by a political activist that Pita had violated election rules by holding 42,000 shares in now-defunct broadcaster ITV Pcl.

Thailand’s constitution bars lawmakers from owning shares in media firms. Pita has said he didn’t own the shares but managed them as part of an estate left behind by his father. It has since been transferred to a family member, he said.

“The latest newsflow suggests that Pita is highly unlikely to win the PM vote in parliament tomorrow, and casts a heavy cloud over his candidacy,” said Alvin T. Tan, head of emerging-market currency strategy at RBC Capital Markets in Singapore. “As such, the market is anticipating an extension of Thailand’s post-election political uncertainty.”

Pita’s eight-party coalition currently commands a clear majority in the 500-member House of Representatives. But the leader of the Move Forward Party, which is pushing for an amendment to the royal insults law, has struggled to muster enough backing from 250 senators appointed by the pro-royalist, military-backed establishment that will vote alongside the lower chamber.

A drawn-out government formation may also further spook investors. The nation’s benchmark stock index is the worst performer in Asia this year, and the baht is the second-biggest decliner in Southeast Asia since the May 14 vote.

—With assistance from Suttinee Yuvejwattana, Napat Kongsawad, Cecilia Yap and Karl Lester M. Yap.