Weekly highlights

The frequently shaky relationship between the Thai and Cambodian governments has the wobbles yet again, this time over exiled former prime minister Thaksin Shinawatra.

On Thursday, the Thai Foreign Ministry recalled its ambassador in Phnom Penh in a protest at the Cambodian government’s official appointment of Thaksin as its economic adviser and against Phnom Pehn’s perceived interference in Thai domestic affairs by criticising the Thai judiciary's handling of the cases against Thaksin. 

Thailand also decided to review all bilateral agreements with Phnom Penh and pull out of maritime talks, which would have covered potential rich supplies of oil and gas in a disputed aea of the eastern Gulf of T hailand .

In retaliation, Phnom Penh recalled its ambassador to Bangkok. Thaksin, meanwhile, accused  the Thai government of overreacting.

It all started with the one-day visit to Phnom Penh by Gen Chavalit Yongchaiyudh, the Puea Thai party chairman, on Oct 21.  The retired general brought back an unprovoked inflammatory remark by Cambodian Prime Minister Hun Sen, who said he felt Thaksin was unfairly treated by the Thai government and that he would open one of his mansions to receive the exiled former prime minister if the wants refuge in Cambodia. 

A few days later, whbile attendig the Asean Summit in Thailand, Hun Sen announced that he would make Thaksin his govrnment's economic adviser.  The appointment became official by virtue of a Royal decree which was announced in Phnom Penh on Wednesday.

In response to the offer from Phnom Penh, Thaksin, in his Twitter account, thanked Hun Sen and accepted the offer.  However, he did not indicate when he would jet into Cambodia to offer more personal thanks or when he would start doing the job.

A Thai Foreign Ministry spokesman maintained that recalling of the senior envoy to Phnom Penh would not really affect relations between the two peoples.  Border trade continues as usual and there is no restriction yet on Thais tisiting Cambodia.

Both Prime Minister Abhisit Vejjajiva and Hun Sen are currently in Tokyo at the Mekong subregion conference.  But there is slim chance the two will meet to discuss the quarrel which has taken the relationship to yet another low.

Having dropped a bombshell from his brief visit to Cambodia, Genl Chavalit carried on with his mission to sell his idea of a semi-autonomous administration for the three strife-torn southernmost provinces, to be called Nakhorn Pattani, by touring the region early this week.  He had invited a number of other politicians, including Gen Sonthi Boonyaratkalin, leader of the Sept 19 coup and now leader of the Matiphum party, to join him on  the tour.  But only Puea Thai MP for Narathiwat Waema Hadi Waeda-oh showed up.

Genl Chavalit’s idea - which was seen as “old wine in a new bottle” - was received with mixed reaction by leading figures in the far South.  And it was categorically rejected by the Democrat Party.

Gen Chavalit’s latest moves, whether  to Cambodia or in floating the idea of a semi-autonomous administrative area on in the South, were deemed by critics as part of Thaksin’s grand strategy to stir up trouble at home, with the fugitive ex-premier doing his part from overseas.

All Puea Thai MPs were instructed by Thaksin on Tuesday to step up visits to their constituents in the hope the Abhisit government will soon fall apart and general election called in the next three months. 

Three people have been arrested for allegedly disseminating a rumour about His Majesty the King’s health over the internet. The rumour prompted a selloff by stock investors as the market shed about 8 per cent of its  value over two days last month.

The three suspects were identified as Thiranan Vjpoochanin, a former employee at UBS securities company, Katha Pajajariyapong, an executive at KT Semeco Securities, and Somjet Itthivarakul.

Central Investigation Bureau commissioner Pol Lt-Gen Tha-ngai Prasajaksatru said each of the three suspects posted the rumour on either the Prachathai or Fah Diew Gun websites - both which are reputed to be anti-government.

Indian-born fraud suspect Rakesh Saxena is likely to be indicted on  a series of embezzlement charges on Nov 11.

The former treasury adviser of collapsed Bangkok Bank of Commerce was extradited from Canada last week after a legal battle stretching over 13 years., He will face charges in connection with his role in helping Krirkkiat Jalichandra, thnen president of the bank, grant a 1.65 billion baht loan to Citi Trading, a company which Saxena and Krirkiat jointly owned.

Several more embezzlement charges are to be brought against him by the prosecution.  Saxena’s trial could send a chill down the spines of several government coalition politicians who benefited from the BBC’s under-collateralised sweetheart loans before it went bankrupt in 1996..  Among them are Banharn Silpa-archa, Newin Chidchob, Sora-ath Klinpathum and Suchart Tancharoen.

The Puea Thai Party tried to capitalize on the cases against Saxena and drive a wedge in the coalition between the Democrat Party and its partners  Bhumjaithai and Chart Thai Pattana. 

Puea Thai MP Jatuporn Promphan has challenged Deputy Prime Minister Suthep Thaugsuban, who attacked the Banharn government in parliament over when the BBC scandal first erupted, claiming Saxena had been given  time to flee the country and avoid arrest after the bank was fleeced dry.