Ousted Thai leader gets 5-year political ban

Yingluck Shinawatra's chances for a political comeback would have to stay in the back burner for the next few years. Bloomberg reported that the recently ousted Thai leader could be banned from politics for five years after the country's anti-graft agency had said that the Senate should impeach Shinawatra for her failure to stem losses from a state subsidy program.

The 46 year-old was forced to step down after the Constitutional Court handed out a guilty plea for abusing power on May 7. The National Anti-Corruption Commission yesterday ruled that she was derelict in her role as overseer of a rice subsidy program, which cost up to $21 billion based on government estimates.

In a televised media briefing in Bangkok, Commissioner Vicha Mahakun said, "Yingluck failed to prevent or stop fraud in the rice-buying program even after the NACC and other government agencies sent letters to warn her."

Bloomberg said the ruling yesterday was an important victory for anti-government protesters, who had been seeking to dismantle the political network of Shinawatra's brother Thaksin. The elder Shinawatra was ousted in a coup in 2006, but has allies that won the last five elections. Demonstrators reportedly plan to rally in the streets of Bangkok again today to be able to pressure the caretaker government under interim premier Niwattumrong Boonsongpaisan to resign ahead of elections.

Yingluck tried to stay in her post for over six months as protests led by ex-opposition politician Suthep Thaugsuban. Supporters of Thaugsuban has accused the Shinawatra family of crony capitalism, abuse of power and using populist policies to secure the support of rural voters. Because of the political unsettle, consumer confidence in the country has dropped to a 13-year low. Credit ratings companies have issued warnings that the continued unrest in the country could damage an already fragile economy.

In an email sent yesterday, DBS Bank Ltd economist Gundy Cahyadi said, "I think there is a good chance we won't see any growth rebound towards the year-end. Pressure definitely will be apparent in markets, given the possibility of a credit rating downgrade. And should that happen, one will also start to get worried about potential implication for long-term investors."

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