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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Australia China India Indonesia Japan Malaysia Philippines Thailand Vietnam Thai court hears case against ruling Democrats Reuters - Tuesday, August 10 Send IM Story Print By Chalathip Thirasoonthrakul BANGKOK - A Thai court began a trial on Monday into alleged funding irregularities by the ruling Democrat Party in a case that could complicate a long-running political crisis in Southeast Asia's second-largest economy. The Constitution Court case centres on mismanagement of an election campaign grant and could lead to the dissolution of Thailand's oldest political party plus bans on its executives, including Oxford-educated Prime Minister Abhisit Vejjajiva. The case is expected to last two months and early proceedings are unlikely to have much impact on financial markets, which have rebounded strongly after deadly political violence in April and May, with the baht and stock market both reaching 26-month highs on Monday. "The political situation might get more fragile in October, as Thailand's Constitution Court is likely to rule on the dissolution case," KGI Securities said in a note to clients. "From now until October, the Thai political backdrop should have a muted impact on the stock exchange." The Election Commission accuses the Democrats of misusing a 29 million baht grant in the 2005 general election by failing to declare their purchase of campaign signs that were far smaller and cheaper than the one they had requested funds for. Dissolution and political bans would be a major setback for the Democrats and for their powerful supporters among the military, royalists and a conservative business elite that has long fought to keep populist parties backed by ousted former Prime Minister Thaksin Shinawatra at bay. Should the court move to dissolve the Democrats, it could result in a new election, which the pro-Thaksin Puea Thai would be well placed to win because of its huge rural support. Analysts say that even if the courts eventually acquitted the Democrats, Abhisit's efforts to resolve a divisive and increasingly violent five-year political standoff will remain hampered. An acquittal would add fuel to claims by the Puea Thai Party and the "red shirt" protest movement, which both support Thaksin, that Thailand's courts are deeply politicised and closely aligned with a largely pro-Democrat establishment. Two ruling parties led or backed by Thaksin have been dissolved by the courts since the 2006 coup, which removed him for alleged corruption and abuse of power during two terms in office, which both came after landslide election wins. Thaksin was also found guilty of graft in 2008 and sentenced in absentia to two years in prison. Thaksin and his supporters say he is the victim of a biased judiciary that is riding roughshod over democracy with disregard for the electorate. Recommend Send IM Story Print Related Articles China mudslides death toll jumps to 337 AFP - 33 minutes ago N.Korea fires artillery into sea as tensions rise AFP - 2 hours 16 minutes ago Cambodian PM warns of 'bloodshed' over Thai border AFP - 2 hours 57 minutes ago One dead, 12 missing in Philippine ship sinking AFP - Tuesday, August 10 Radical Indonesian cleric held over 'terror' plot AFP - Tuesday, August 10 News Search Top Stories Campbell said she got diamond from Taylor: Farrow BP oil spill response costs hit $6.1 bln German trade data bodes well for European growth BP spends $6.1 bln on Gulf spill response Israel PM defends flotilla raid as 'lawful' More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Sauna contest in Finland cut short as Russian dies Massive ice island breaks off Greenland glacier Campbell said she got diamond from Taylor: Farrow Former HP boss reaches settlement with accuser BP spends $6.1 bln on Gulf spill response More Most Viewed » Argentine students crack three-decade-old murder mystery 40 US billionaires pledge half wealth to charity World's first full face transplant man appears on TV Calcium supplements linked to heart attacks: study Massive ice island breaks off Greenland glacier More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010

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