Thai ruling party concedes defeat in polls

The Thai Rak Thai and its leader, Thaksin Shinawatra, had aimed to capture at least 200 seats in the lower House of Parliament. That would position the party to form a coalition government.

After the exit polls were announced, Thaksin said his party might form a coalition with the New Aspiration and the Chart Thai, or Thai Nation, parties.

Chuan – the scrupulously honest but unexciting leader of the Democrats – acknowledged earlier in the day that his opponent presented a substantial challenge. "This is the toughest fight in my 32-year political career because I have to fight against the richest man in this country," said Chuan, 62.

But tycoon-turned-politician Thaksin Shinawatra, a spectacularly successful businessman, may find his political ambitions cut short just as he starts to savour his victory.

Thaksin has been indicted by Thailand’s National Counter Corruption Commission (NCCC) for failing to declare some of his wealth during previous ministerial terms.

Thaksin denies wrongdoing, but if the Constitutional Court upholds the ruling, he would be barred from politics for five years and the top political post he has coveted for so long would be snatched away from him.

Court deliberations could take months, however, and given the size of Thaksin’s mandate, Thailand’s fragile democracy could face a crisis if he was suddenly removed from office.

With strong leadership qualities and persuasive powers, Thaksin has vowed to steer Thailand with a clean government that truly represents the people.

But critics say he is a throwback to old-style Thai politics of patronage and buying loyalty.

Founder of Thailand’s largest telecoms conglomerate, ShinCorp, Thaksin has been close to the reins of power for most of the last decade but never right at the centre of government.

He was twice deputy Prime Minister in the governments of Banharn Silpa-archa and Chavalit Yongchaiyudh during the 1990s.

Thaksin has said if he becomes Prime Minister, he will choose only clean politicians for his cabinet, and fire anybody who turns out to be corrupt or lazy.

On the economic front, he has pledged top priority for agriculture, promising farmers a debt moratorium and offering each of Thailand’s 70,000 villages one million baht ($23,120).

Thaksin wants more government help for Thai businesses and says more must be done for banks battered by the Asian crisis.

He wants to set up a National asset management company tohandle the billions of dollars of non-performing loans left over from the Financial meltdown of 1997-98.

The promises have concerned some economists and raised questions about where the money would come from. But analysts say some of the pledges may not be implemented.

Born on July 26, 1949 in a two-storey wooden house in frontof the market in Thailand’s northern city of Chiang Mai, Thaksin became a policeman in 1973 before receiving a government scholarship to study for a masters degree in criminal Justice at Eastern Kentucky University.

He earned a doctorate in that subject from Sam Houston State University in 1978 and then taught at the Thai Police Cadet Academy before resigning in 1987 to embark on a business career.

Thaksin and his wife, Potjaman Shinawatra, established a computer dealership in 1982. It grew into Shinawatra Computer and Communication Plc, which changed its name to Shin Corp in 1999.

Shin Corp now has assets of about 25 billion baht with amajority stake in the country’s largest mobile phone operator, Advanced Info Service Plc.

It also holds a big stake in satellite operator ShinSatellite and has interests in Internet businesses, paging, television and other data communications.

"Thaksin rarely comes in to work these days. It’s mainly inthe hands of the group’s executives," one Shin executive said.

Thaksin was appointed foreign Minister in 1994 and resignedfrom every position in the Shinawatra group before taking the position to show he had "clean hands".

"My family was already financially secure and my businesswas in good hands, so I thought why worry? It’s about time to pay a little back to my country," Thaksin said of his decision. ($1=43.25 Thai Baht)