Constitutional Court Deems PM Srettha Guilty Of Ethics Violation, Removes Him From Post

The Constitutional Court voted 5-4 to remove Prime Minister Srettha Thavisin from office after finding him guilty of a violation of ethics rules. The verdict applies pressure to Thai assets amid heightened uncertainty around the political outlook, with spot USD/THB close to erasing its intraday loss and the SET Index sinking.

• The top court argues that Srettha grossly violated ethics norms by appointing Pichit Chuenban to a cabinet position, despite the fact that the lawyer served a prison sentence in the past. Most local observers had expected Srettha to survive the challenge.
• The verdict implies an immediate dissolution of the government, with the cabinet serving in caretaker capacity, and the House of Representatives will now have to pick a new PM. In the meantime, one of the Deputy Prime Ministers will temporarily preside over cabinet meetings.
• Potential candidates for the new PM include Pheu Thai Party's (PTP's) Paetongtarn Shinawatra and Chaikasem Nitisiri, but none of them is perceived as the optimal candidate. Bhumjaithai’s Anutin Charnvirakul is seen as the next best candidate. A deadlock could potentially lead to a snap general election.
• The verdict amplifies political uncertainty during the ongoing period of political turbulence in Thailand, following last week's dissolution of the main opposition Move Forward Party (MFP). Srettha's ouster further complicates the local political situations as tensions simmer between the PTP and its conservative partners.