Snags hamper bid to select BoT chair

The selection committee tasked with selecting a new board chairman of the Bank of Thailand has postponed its planned meeting until next Monday, while Kittiratt Na-Ranong, a former commerce minister, is likely to be removed as a candidate following strong opposition from various sectors.
Satit Limpongpan, the chairman of the selection committee for the new board chairman of the central bank, informed members Monday morning of the decision to postpone the session originally scheduled for Monday afternoon.
The committee’s secretary, Vireka Suntapuntu, confirmed that the committee’s chairman consulted with committee members before agreeing to reschedule the meeting for Nov 11, allowing members more time to consider relevant information and ensure effective proceedings.
According to a member of the selection committee who requested anonymity, the main reason for the delay is the intense opposition due to Mr Kittiratt’s perceived political affiliations, raising concerns of potential bias in his candidacy.
While Mr Kittiratt meets the formal qualifications for the role, some of his earlier remarks on policy rates have been interpreted as indicating political interference with the central bank’s Monetary Policy Committee, further fuelling the opposition to his candidacy, the source said.
On Oct 30, the Economics for Society Group gathered, including 227 economists as well as four former central bank governors, namely Pridiyathorn Devakula, Tarisa Watanagase, Prasarn Trairatvorakul and Veerathai Santiprabhob. They expressed their opposition to political representatives serving as the central bank’s board chairman, instead advocating for independence.
The Economics for Society Group issued a statement indicating it was deeply concerned about the potential impact of allowing political factions to dominate the country’s monetary policy.
Political entities often prioritise short-term gains for immediate results, which could harm the country’s economic stability in the long run, noted the group.
The selection committee for a new central bank chairman was scheduled to hold its second meeting Monday afternoon to find a successor to Porametee Vimolsiri, whose term ended on Sept 16.
Recently the government indicated its intention to nominate its own candidate to succeed Mr Porametee, with Mr Kittiratt emerging as a likely contender.
Mr Kittiratt, a former commerce minister, previously served as deputy leader and chief economic strategist for the ruling Pheu Thai Party. He also acted as an advisor to former premier Srettha Thavisin, periodically criticising the central bank’s interest rate policy and the regulator’s independence.
Other candidates for chairman include former energy permanent secretary Kulit Sombatsiri and Surapon Nitikraipot, president of the Thammasat University Council and an independent director of PTT Plc.
According to selection rules, the Finance Ministry can propose one candidate for each board vacancy, while the central bank can submit two candidates for a position.
“Mr Kittiratt may be withdrawn from consideration and the Finance Ministry may present a new list of candidates at the next meeting,” the source said.
In a separate development, a group opposed to political influence on the central bank gathered at the Bank of Thailand’s headquarters and submitted a letter to the committee’s secretary.
Their demands include the resignation of Mr Satit as the committee’s chairman, citing his unsuitable qualifications.
The group also argued that Mr Satit’s previous role as permanent secretary at the Finance Ministry implies close ties to the ruling Pheu Thai Party.
According to a representative of the protesters, in 2001 the Supreme Court ordered Mr Satit to pay 20.9 billion baht in damages related to the AIS concession case.
The group also called for the central bank’s independence from political interference and announced plans to reconvene at next Monday’s meeting to monitor developments.
Should their demands be ignored, they may escalate their protests, according to a group representative.
Finance Minister Pichai Chunhavajira said Monday that the Finance Ministry is prepared to propose a new nominee for the central bank’s board chairman if it will help the country move forward.