Bank of Thailand’s independence at risk with new board chair: critics
Leading economists believe the former finance minister’s close ties to the ruling party will allow political interference in the central bank’s policies
Former finance minister Kittirat Na-Ranong was named chairman of the Bank of Thailand’s board of directors, prompting concerns that his ties with the ruling Pheu Thai Party would open the door to possible political interference.
A source from the selection committee said Kittirat, who was nominated by the Finance Ministry, had beaten the two candidates nominated by the BOT.
The central bank had proposed former Energy Ministry’s permanent secretary Kulit Sombatsiri and president of Thammasat University Council Surapon Nitikraipot for the job.
On Saturday, the “Economists for Society” group urged the selection committee to not select Kittirat for the post for fears that his close ties with the ruling Pheu Thai Party would influence the central bank’s policies, which should remain independent.
The group said 830 economists, including four former BOT governors, had signed a petition calling on the selection committee to not give the post to a candidate close to the government. The committee has several former senior government officials as its members.
The committee had postponed the selection of the chairman twice – once on October 8 and again on November 4. The committee held a meeting that lasted for five hours on Monday (November 11) to finally select a chairman.
After the meeting, former Finance Ministry permanent secretary Sathit Limpongphan, who chairs the panel, said the selection of the BOT board chairman and specialist board members had been completed. He did not elaborate.
He said the new chairman must first get Cabinet approval and be appointed by His Majesty the King before the name can be announced.
Sathit added that the panel’s secretary will present the name of the new board chairman to Finance Minister Pichai Chunhavajira before he passes it on to the Cabinet for approval. Once approved, the name will be sent to the Palace for appointment by royal command.
As for the specialist board members, Sathit said they will get the final approval from the finance minister himself.
