Pridiyathorn Devakula
Encyclopedia
Mom Rajawongse Pridiyathorn Devakula ( prīːdìjāːtʰɔːn tʰēwâkūn; born 15 July 1947)
served as Minister of Finance in Thailand's interim civilian government. Before being named to the Cabinet of Prime Minister
Surayud Chulanont
, Pridiyathorn had served as Governor of the Bank of Thailand
since 2001. Following the September 2006 coup d'état
, there was speculation that he would be appointed prime minister by the junta.
, Bangkok
, and at the Wharton Business School, University of Pennsylvania
, where he gained an MBA. From 1971 to 1990 he worked for the Thai Farmers Bank, becoming Senior Executive Vice President. In 1990 he became official spokesman for Prime Minister Chatichai Choonhavan
. In the governments of Anand Panyarachun
and Suchinda Kraprayoon
(1991–92) he was Deputy Minister of Commerce. He was appointed member of the Thai Senate
from 1992 to 1993. In 1993 he became president of the Export-Import Bank of Thailand, and in May 2001 he was appointed Governor of the Bank of Thailand
, the nation's central bank. He is also a Director of the Civil Service Commission and of the Thammasat University
Council.
Pridiyathorn holds the titles Knight Grand Cross (First Class) of the Most Noble Order of the White Elephant
and Knight Grand Cross (First Class) of the Most Noble Order of the Crown of Thailand.
(KTB) shocked Thailand's financial world by reclassifying approximately 40 billion baht as problem loans. Pridiyathorn threatened to fire KTB chief executive officer Viroj Nualkhair if he did not resign. Viroj was a former financial advisor to media proprietor Sondhi Limthongkul
, having helped him make the initial public offering one of his first companies. As Krung Thai Bank head, Viroj had forgiven 1.6 billion baht of Sondhi's debts and arranged for further rounds of forgiveness. Using all his media outlets, Sondhi attacked Pridiyathorn and defended Viroj.
Viroj was eventually forced to leave Krung Thai Bank. Sondhi's public criticism of Thaksin started to increase, eventually leading to the establishment of the People's Alliance for Democracy
. This was a factor behind the September 2006 coup.
, the Bangkok newspaper The Nation
reported:
Surayud Chulanont
was eventually named prime minister, but he in turn named Pridiyathorn to his Cabinet as Minister of Finance, a move that business leaders saw as positive. He was succeeded as governor of the Bangkok of Thailand by Tarisa Watanagase
, the first woman to head the BoT.
Pridiyathorn resigned on 28 February 2007. He cited reasons for resignation included,
His resignation shocked the political world as well as the business community. "The reasons he gave were quite strange," noted Pornsilp Patcharinpanakul, deputy secretary-general of Board of Trade. In turn, Pridiyathorn was replaced by Chalongphob Sussangkarn
.
Junta leader General Saprang Kalayanamitr
was also implicated in Pridiyathorn's resignation. The Bangkok Post
reported that Pridiyathorn resigned in protest after a CNS member lobbied him to sell shares of IRPC (formerly known as Thai Petrochemical Industry) back to a former shareholder. Saprang's brother, Chienchuan, was a key financial advisor to Prachai Liaophairat, the estranged founder of TPI.
served as Minister of Finance in Thailand's interim civilian government. Before being named to the Cabinet of Prime Minister
Prime Minister of Thailand
The Prime Minister of Thailand is the head of government of Thailand. The Prime Minister is also the chairman of the Cabinet of Thailand. The post has existed since the Revolution of 1932, when the country became a constitutional monarchy....
Surayud Chulanont
Surayud Chulanont
General Surayud Chulanont is a Thai political figure. He was the Prime Minister of Thailand and head of Thailand's Interim Government between 2006 and 2008...
, Pridiyathorn had served as Governor of the Bank of Thailand
Bank of Thailand
- History :The Bank of Thailand was first set up as the Thai National Banking Bureau. The Bank of Thailand Act was promulgated on 28 April 1942 vesting upon the Bank of Thailand the responsibility for all central banking functions...
since 2001. Following the September 2006 coup d'état
2006 Thailand coup d'état
The 2006 Thai coup d'état took place on Tuesday 19 September 2006, when the Royal Thai Army staged a coup d'état against the elected caretaker government of Prime Minister Thaksin Shinawatra...
, there was speculation that he would be appointed prime minister by the junta.
Early life and education
Pridiyathorn was educated at Thammasat UniversityThammasat University
Thammasat University , or in brief TU , is Thailand's second oldest university. Officially established on 27 June 1934, the university was originally named by founder Pridi Banomyong, University of Moral Science and Politics , reflecting the political fervor of the time...
, Bangkok
Bangkok
Bangkok is the capital and largest urban area city in Thailand. It is known in Thai as Krung Thep Maha Nakhon or simply Krung Thep , meaning "city of angels." The full name of Bangkok is Krung Thep Mahanakhon Amon Rattanakosin Mahintharayutthaya Mahadilok Phop Noppharat Ratchathani Burirom...
, and at the Wharton Business School, University of Pennsylvania
University of Pennsylvania
The University of Pennsylvania is a private, Ivy League university located in Philadelphia, Pennsylvania, United States. Penn is the fourth-oldest institution of higher education in the United States,Penn is the fourth-oldest using the founding dates claimed by each institution...
, where he gained an MBA. From 1971 to 1990 he worked for the Thai Farmers Bank, becoming Senior Executive Vice President. In 1990 he became official spokesman for Prime Minister Chatichai Choonhavan
Chatichai Choonhavan
General Chatichai Choonhavan was the Prime Minister of Thailand from 1988 to 1991. He was the only son of Field Marshal Phin Choonhavan, and is of Thai Chinese descent with ancestry from Chenghai District...
. In the governments of Anand Panyarachun
Anand Panyarachun
Anand Panyarachun was Thailand's Prime Minister twice, between 1991–1992 and once again in 1992. He was effective in initiating economic and political reforms, one of which was the drafting of Thailand's "Peoples' Constitution", which was promulgated in 1997 and abrogated in 2006...
and Suchinda Kraprayoon
Suchinda Kraprayoon
Suchinda Kraprayoon was Prime Minister of Thailand from 7 April 1992 until 24 May 1992.Suchinda, son of Juang and Sompong Kraprayoon, was born 6 August 1933 in the province of Nakhon Pathom, Thailand, and is of Chinese and Mon descent...
(1991–92) he was Deputy Minister of Commerce. He was appointed member of the Thai Senate
National Assembly of Thailand
The National Assembly of Thailand or the Parliament of Thailand is the legislative branch of the government of Thailand. The National Assembly of Thailand is a bicameral body, consisting of two chambers: the upper house, , and the lower house,...
from 1992 to 1993. In 1993 he became president of the Export-Import Bank of Thailand, and in May 2001 he was appointed Governor of the Bank of Thailand
Bank of Thailand
- History :The Bank of Thailand was first set up as the Thai National Banking Bureau. The Bank of Thailand Act was promulgated on 28 April 1942 vesting upon the Bank of Thailand the responsibility for all central banking functions...
, the nation's central bank. He is also a Director of the Civil Service Commission and of the Thammasat University
Thammasat University
Thammasat University , or in brief TU , is Thailand's second oldest university. Officially established on 27 June 1934, the university was originally named by founder Pridi Banomyong, University of Moral Science and Politics , reflecting the political fervor of the time...
Council.
Pridiyathorn holds the titles Knight Grand Cross (First Class) of the Most Noble Order of the White Elephant
Order of the White Elephant
The Most Exalted Order of the White Elephant is the most awarded order of Thailand. It was established in 1861 by King Rama IV of the Kingdom of Siam.The Order consists of eight classes:...
and Knight Grand Cross (First Class) of the Most Noble Order of the Crown of Thailand.
The KTB non-performing loan scandal
In 2004, the state-owned Krung Thai BankKrung Thai Bank
Krung Thai Bank Public Company Limited is the state-owned bank under the license issued by the Ministry of Finance.- History :The bank was incorporated on March 14, 1966 through the merger of Agriculture Bank Limited and Mondhon Bank Limited, which the government was their major shareholder...
(KTB) shocked Thailand's financial world by reclassifying approximately 40 billion baht as problem loans. Pridiyathorn threatened to fire KTB chief executive officer Viroj Nualkhair if he did not resign. Viroj was a former financial advisor to media proprietor Sondhi Limthongkul
Sondhi Limthongkul
Sondhi Limthongkul is a Thai media mogul and leader of the right-wing People's Alliance for Democracy . He was elected for leader of the New Politics Party ....
, having helped him make the initial public offering one of his first companies. As Krung Thai Bank head, Viroj had forgiven 1.6 billion baht of Sondhi's debts and arranged for further rounds of forgiveness. Using all his media outlets, Sondhi attacked Pridiyathorn and defended Viroj.
Viroj was eventually forced to leave Krung Thai Bank. Sondhi's public criticism of Thaksin started to increase, eventually leading to the establishment of the People's Alliance for Democracy
People's Alliance for Democracy
The People's Alliance for Democracy also called the National Liberation Alliance - กลุ่มพันธมิตรกู้ชาติ, Thai Patriots Network or the Yellow Shirts - เสื้อเหลือง - was originally a coalition of protesters against Thaksin Shinawatra, the former Prime Minister of Thailand. Its leaders include...
. This was a factor behind the September 2006 coup.
September 2006 Thailand coup
Two days after the coup which deposed Prime Minister Thaksin ShinawatraThaksin Shinawatra
Thaksin Shinawatra is a Thai businessman and politician, who was Prime Minister of Thailand from 2001 to 2006, when he was overthrown in a military coup....
, the Bangkok newspaper The Nation
The Nation (Thailand)
The Nation is a broadsheet, English-language daily newspaper founded in 1971 and published in Bangkok, Thailand, and is owned by the Nation Multimedia Group.The Nation is a member of the Asia News Network...
reported:
- "Business leaders have called for the Council for Democratic Reform under Constitutional Monarchy to pick Bank of Thailand (BOT) Governor MR Pridiyathorn Devakula to serve as interim prime minister. Pridiyathorn has emerged as the front runner for the premiership, even though he said on Wednesday he had not been approached by the council. Council leader General Sonthi Boonyaratglin said a civilian would be picked within two weeks to become interim prime minister.
- "Bangkok Bank chairman Chatri Sophonpanich said yesterday he supported Pridiyathorn becoming the new premier. He said the new prime minister would be well received by Thais and foreigners alike if he or she had a background in economics, and that Pridiyathorn fit the criteria."
Surayud Chulanont
Surayud Chulanont
General Surayud Chulanont is a Thai political figure. He was the Prime Minister of Thailand and head of Thailand's Interim Government between 2006 and 2008...
was eventually named prime minister, but he in turn named Pridiyathorn to his Cabinet as Minister of Finance, a move that business leaders saw as positive. He was succeeded as governor of the Bangkok of Thailand by Tarisa Watanagase
Tarisa Watanagase
Tarisa Watanagase is currently the governor of the Bank of Thailand . She succeeded Pridiyathorn Devakula, who was appointed finance minister in the interim government. Tarisa was an assistant governor of the BoT and is the first female governor in the bank's 64-year history.An economist, Tarisa...
, the first woman to head the BoT.
Deputy Prime Minister and Minister of Finance
Pridiyathorn's policies as Minister of Finance included,- Fiscal deficits. A budget deficit of 147 billion Baht for fiscal year 2007. This was the first budget deficit since 2003. Fiscal deficits were also expected for 2008.
- Suvarnabhumi City. Pridiyathorn opposed the establishment of a new province, dubbed Suvarnabhumi CityNakhon Suvarnabhumi ProvinceNakhon Suvarnabhumi was a proposed new province of Thailand in the southeast of Bangkok around the new Bangkok airport. It is planned to cover the districts Lat Krabang and Prawet of Bangkok and Bang Sao Thong and Bang Phli of Samut Prakan Province, an area of 521 km² with about 462,000...
, around the newly constructed Suvarnabhumi AirportSuvarnabhumi AirportSuvarnabhumi Airport , also known as Bangkok International Airport, is an international airport serving Bangkok, Thailand. It was officially opened for limited domestic flight service on 15 September 2006, and opened for most domestic and all international commercial flights on 28 September...
. The plan to establish a new province had been proposed by the deposed government of Thaksin ShinawatraThaksin ShinawatraThaksin Shinawatra is a Thai businessman and politician, who was Prime Minister of Thailand from 2001 to 2006, when he was overthrown in a military coup....
. "There are a lot of retention ponds in the area and water experts said they serve as waterways, allowing floods to flow to the sea. If there are buildings, they will obstruct water from flowing out, and cause the inner city to flood. If the Department of Town and Country Planning proposes to build a community in the area, I'll oppose it," said Pridiyathorn. - Capital controls. Pridiyathorn instituted capital controls to attempt to reverse a strengthening of the baht, but reversed the measure after the Thai stock market crashed, destroying US$20 billion of market value in one day. Pridiyathorn later noted that “This was not a mistake. Measures always have side effects. Once we knew the side effects, we quickly fixed it.... Just one day of stocks falling is not considered much damage.” He came under harsh criticism. Bratin Sanyal, head of Asian equity investments at INGING GroupThe ING Group is a global financial institution offering retail banking, direct banking, commercial banking, investment banking, asset management, and insurance services. ING is the Dutch member of the Inter-Alpha Group of Banks, a cooperative consortium of 11 prominent European banks...
in Hong Kong noted, "The one thing worse than an incompetent central bank is an incompetent central bank that flip-flops." Catherine Tan, head of Asia Emerging Markets at Forecast in Singapore, noted, "They are proving themselves to be very unprofessional. Their actions are very irresponsible. They have totally lost credibility... I don't see foreigners returning to Thailand any time in the near future. Markets now have no confidence in the government." The Export-Import Bank of Thailand also criticized the capital controls. - Limiting foreign companies investing in List I and II businesses (including media, telecoms, and aviation) from holding more than 50% of shares. List III businesses (including retailers and hotels) were exempted from the new restrictions. Investors holding more than 50% would be forced to lower their stakes within a year. Investors holding more than 50% of voting rights would be forced to lower their voting stakes within a year. Finance Minister Pridiyathorn noted, "If they (foreign investors) had seen the details (of the foreign investment law), I am sure that they would be happy." He later backtracked, and said that telecommunications firms would be exempt from the new regulations. He claimed that he had misspoken when he earlier included the telecommunications business into the categories to be affected by the law amendments.
- Corruption investigations into Thaksin Shinawatra. Pridiyathorn sparked controversity in his dealings with Jaruvan MaintakaJaruvan MaintakaKhun Ying Jaruvan Maintaka is the current Auditor-General of the Kingdom of Thailand. She refused to resign her position after the Constitutional Court of Thailand ruled that her nomination was illegal. She is well known for her public criticism of deposed Premier Thaksin Shinawatra...
of the junta-appointed Assets Examination Committee. Jaruvan accused Thaksin's wife of inappropriately buying a plot of land from the Financial Institutions Development Fund (FIDF) while Pridiyathorn was FIDF Chairman. Pridiyathorn guaranteed that the purchase was legal and refused to file charges, claiming that the FIDF was not a damaged party. Jaruvan then claimed that Pridiyathorn violated the law by sitting on the boards of more than three state enterprises. Pridiyathorn countered by claiming that Jaruvan was trying to destroy his reputation. - Monetary policy. Pridiyathorn took the unusual step of urging the Bank of ThailandBank of Thailand- History :The Bank of Thailand was first set up as the Thai National Banking Bureau. The Bank of Thailand Act was promulgated on 28 April 1942 vesting upon the Bank of Thailand the responsibility for all central banking functions...
to cut interest rates by half a percentage point, rather than 25 basis pointBasis pointA basis point is a unit equal to 1/100 of a percentage point or one part per ten thousand...
s as expected by most analysts. Bank of Thailand is independent of the Ministry of Finance, and did not heed Pridiyathorn's call. He resigned the next day.
Pridiyathorn resigned on 28 February 2007. He cited reasons for resignation included,
- Premier Surayud's decision to appoint Pridiyathorn's rival, former Thaksin-government Finance Minister Somkid JatusripitakSomkid JatusripitakSomkid Jatusripitak , Chinese: 曾汉光, Thai politician, is a former Deputy Prime Minister and Minister of Commerce of Thailand. He was a leader and cofounder of the populist Thai Rak Thai party. His wife, Anurachanee Jatusripitak, teaches at Chulalongkorn University...
, as a self-sufficiency economy special envoy. Somkid resigned from his position after less than a week. - Prime Minister's Office Minister Thirapat Serirangsan's alleged preference to certain private media interests. Several analysts speculated that he was referring to the preferential treatment the junta gave to leading anti-Thaksin critic Sondhi LimthongkulSondhi LimthongkulSondhi Limthongkul is a Thai media mogul and leader of the right-wing People's Alliance for Democracy . He was elected for leader of the New Politics Party ....
, who was also a long-time critic of Pridiyathorn.
His resignation shocked the political world as well as the business community. "The reasons he gave were quite strange," noted Pornsilp Patcharinpanakul, deputy secretary-general of Board of Trade. In turn, Pridiyathorn was replaced by Chalongphob Sussangkarn
Chalongphob Sussangkarn
Chalongphob Sussangkarn was the President of the Thailand Development Research Institute and later served as Minister of Finance in Surayud Chulanont's military junta. An ethnic Chinese of Hainanese origin, He replaced Pridiyathorn Devakula after Pridiyathorn abrubtly resigned...
.
Junta leader General Saprang Kalayanamitr
Saprang Kalayanamitr
General Saprang Kalayanamitr is a retired officer of the Royal Thai Army, Assistant Secretary-General of the Council for National Security, Commander of the junta's 14,000-man anti-protest force, Chairman of the Board of Directors of Airports of Thailand , and also Chairman of the Boards of TOT...
was also implicated in Pridiyathorn's resignation. The Bangkok Post
Bangkok Post
The Bangkok Post is a broadsheet, English-language daily newspaper published in Bangkok, Thailand. The first issue was sold on August 1, 1946. It had four pages and cost 1 baht, a considerable amount at the time....
reported that Pridiyathorn resigned in protest after a CNS member lobbied him to sell shares of IRPC (formerly known as Thai Petrochemical Industry) back to a former shareholder. Saprang's brother, Chienchuan, was a key financial advisor to Prachai Liaophairat, the estranged founder of TPI.