Thai court to hear lottery case involving ministers

By Chalathip Thirasoonthrakul

BANGKOK (Reuters) - Thailand's Supreme Court agreed on Monday to hear accusations that the cabinet of former Prime Minister Thaksin Shinawatra breached lottery laws, a decision that may force three current cabinet ministers to resign.

The court will go ahead with a case looking at whether all 47 ministers in the Thaksin government violated the law when they launched a lottery scheme in 2003, a judge said in court. The first hearing is due on September 26.

"The charge is in accordance with the Supreme Court's procedure," said Judge Roongroj Ruenrerngwong, reading out the ruling as the other eight judges on the panel looked on. "Therefore it has agreed to hear the case."

Finance Minister Surapong Suebwonglee, Labor Minister Uraiwan Thienthong and Deputy Transport Minister Anurak Jureemas, who were in the Thaksin cabinet, may have to quit as a result.

Thailand's stock market, which has fallen more than 20 percent since anti-government street protests started on May 25, gave up small gains and turned lower after the news. At 0810 GMT the main index was down around 1 percent.

"The court decision has put more pressure on the current government as it might lose the ministers, which could affect the government's projects," said UOB KayHian Securities analyst Kosin Sripaiboon, referring to flagship infrastructure plans.

Prime Minister Samak Sundaravej, in power for six months, has already lost two ministers after court verdicts this month and faces a series of other cases.

Samak's six-party coalition has been distracted by prolonged street protests and he is trying to win public support with huge infrastructure projects to support the economy plus handouts to the poor.

Surapong said he and the other two serving ministers would meet with the government's legal adviser on Tuesday to discuss whether they should resign, as suggested by some members of an independent anti-graft watchdog, but he was staying put for now.

"Since there has been no legal precedent on the case, I will continue to perform my duty," Surapong told reporters at the Finance Ministry.

ONE OF SEVERAL

The military overthrew Thaksin in 2006 and set up a committee to probe accusations of abuse of power and wrongdoing against him and his cabinet. The lottery case is one of several the anti-graft committee recommended the courts should pursue.

The anti-graft committee accused the Thaksin cabinet of breaking the law when launching a new lottery project in 2003, and also said that lawmakers from ruling parties were siphoning money from the lottery, charges Thaksin denies.

The street campaign to oust Samak is led by a coalition of activists, royalists and businessmen who accuse his government of trying to protect Thaksin from graft charges.

Samak has blamed the current crisis on the 2007 constitution, designed by the coup makers who overthrew Thaksin, which gives judges more oversight in the political arena.