US embassy cable - 05BANGKOK5917

C O N F I D E N T I A L SECTION 01 OF 02 BANGKOK 005917 
 
SIPDIS 
 
E.O. 12958: DECL: 09/14/2015 
TAGS: PGOV, TH 
SUBJECT: CONFLICT OVER AUDITOR GENERAL EMBARRASSES THAKSIN 
GOVERNMENT 
 
REF: (A) BANGKOK 3471 (B) BANGKOK 3381 
 
Classified By: POLITICAL COUNSELOR SUSAN M. SUTTON.  REASON: 1.4 (D) 
 
1.    (C)  Summary.  Some 96 days after a candidate for new 
Auditor-General was submitted by the Senate for the King's 
approval, the Palace remains mute, leaving the Thaksin 
Government in an awkward situation.  Though the issue of 
appointments to the independent Auditor-General position is 
made by the nominally neutral Senate, the nominee, Wisut 
Montriwat, is widely believed to have been picked by Prime 
Minister Thaksin's Thai Rak Thai (TRT) Party to replace 
incumbent Khunying Jaruwan Maintahai (ref. B).  Jaruwan is 
considered by observers here as a straight-shooting, 
incorruptible officer who was closing in on alleged 
government malfeasance in awarding contracts for the new 
airport.  The Palace's silence has become deafening and now 
there is increasing call for the resignation of Senate 
Speaker Suchon Suwanpanont for trying to remove Jaruvan and 
for sending Wisut's name to the King for approval without 
final determination of Jaruwan's status.  The issue is also 
causing tensions within the TRT.  More significantly, the 
discussion emanating from the Auditor-General controversy has 
ignited discussion over the powers of the monarchy.  End 
Summary. 
 
BACKGROUND 
 
2.  (SBU)  As noted in earlier reporting, on July 6, 2004, 
the Constitutional Court ruled that the selection process 
that made Jaruwan Auditor General was unconstitutional.  The 
Court did not rule, however, if the unconstitutional 
selection process meant that Jaruwan had to resign.  The 
ruling catalyzed intense debate on Khunying Jaruwan,s 
status.   Some said she was defacto removed from her office 
by the ruling, but others argued that without the royal 
command for her removal and in light of the fact that the 
Court did not rule on her vacation of office, she could stay 
on as Auditor-General.   However, a majority of senators 
(especially those under the government's control) championed 
the first notion; thus, moving for selection of a new 
Auditor-General.  On May 10 this year, the Senate selected 
Wisut Montriwat, a former Deputy Permanent Secretary of 
finance considered by many to be a supporter of the Thaksin 
government, as new Auditor-General. 
 
3.  (SBU)  This selection met with resistance from some 
Senators, MPs and law experts, who warned of legal 
complications.  60 members of the TRT's Wang Nam Yen faction 
sent a letter to Senate Speaker Suchon, asking him not to 
propose the name of Wisut for the King's appointment (as 
noted in previous reporting, around 40 members of the faction 
were later pressured by PM Thaksin into withdrawing their 
names from the support of this act).   Regardless of all the 
opposition, Suchon presented the name of the new 
Auditor-General to the King on June 10, 2005, but to date the 
King has not yet issued the Royal Command appointing the new 
Auditor-General, although such appointments are normally 
quickly endorsed by the Palace.  (Note:  It was believed that 
Suchon, known as the Government,s supporter, had been 
instructed by the powers that be to forge ahead with Wisut,s 
nomination as new Auditor-General. End note.)  Observers such 
as Nation Group Editor Kavi Chongkittavorn claim to us that 
the Palace was unhappy over the Senate's attempt to make the 
King complicit with rubber-stamping the removal of Jaruwan -- 
a popular official who had been officially endorsed by the 
King. 
 
THE POWER OF THE MONARCHY COMES UNDER DISCUSSION 
 
4.  (C)  The Palace's passive-aggressive response to the 
attempt to oust Jaruwan was certainly on the minds of 
participants in a September 6th 2005, Thammasat 
University-hosted seminar discussion on the powers of the 
monarchy in modern Thailand.  The seminar drew a much larger 
crowd than officials had expected.  Many insiders were 
interested in how the modern-day monarchy plays into Thai 
politics, and were looking for insights into the resolution 
of the Auditor-General row.  The main speaker was TRT MP 
Pramuan Rutchanaseri, who recently wrote a best-selling book 
called "Royal Powers".  Pramuan has recently faced threats of 
expulsion from the TRT party because of his dissenting views 
from Prime Minister Thaksin on several issues.  As expected, 
Pramuan and others at the seminar strongly criticized the 
Thaksin administration, especially the perception that he 
was, through Suchon's attempt to remove Jaruwan, challenging 
the power of the King. 
 
ISSUE COMING TO A HEAD 
 
5.  (C)  COMMENT:  It has been 96 days since Wisut's name was 
presented to the King for his appointment, and the feeling 
here is that something has to give.  Many observers here, 
such as Senator Thawin Phraison, tell us that Thaksin wants 
to extricate himself from this embarrassing impasse by having 
Senate Speaker Suchon pull back Wisut's nomination.  There is 
reportedly a good deal of behind-the-scenes maneuvering. 
Recently, for example, four Senators, led by Bangkok Senator 
Seri Suwanphanon, reportedly asked the King's Principal 
Private Secretary, Asa Sarasin, for a meeting to discuss a 
solution to the situation.  Suchon is facing increasing 
criticism for his role in the clumsy attempt to remove a 
popular and honest official.  The Campaign for Popular 
Democracy (CDP) and other civic groups will decide shortly on 
whether to gather the 50,000 signatures needed for an 
impeachment petition against Suchon. Though the imbroglio has 
been an embarrassment for Thaksin, he has so far managed to 
avoid becoming too publicly linked with this issue. 
Thaksin's opponents hoped that the conflict might seriously 
weaken the Prime Minister, but it seems to lack resonance 
outside the highly politicized circles in Bangkok -- another 
embarrassment, but hardly a fatal blow.  End Comment. 
ARVIZU