Thai PM sparks turmoil after criticising military in leaked audio

[BANGKOK] Thailand's prime minister blamed her own military for escalating a border dispute with Cambodia, according to a leaked audio recording, sparking fresh political turmoil in the country as opposition groups called on her to resign.
Prime Minister Paetongtarn Shinawatra slammed former Cambodian leader Hun Sen on Wednesday (Jun 18) for leaking a recording of the June 15 call. The 17-minute private conversation, which has since been posted in full on Hun Sen's Facebook page, should not have been recorded or shared, she said.
The Thai leader is already facing the threat of her coalition's largest partner quitting the cabinet over a ministerial post, concerns that sent the benchmark stock index to a two-month low on Wednesday.
Paetongtarn said her 'sympathetic remarks and softer tone' during the phone call with Hun Sen were part of a strategy to ease the border tension.
'It was just a negotiation technique. I was conducting myself with the purpose of maintaining peace and our sovereignty,' Paetongtarn said. 'It's clear now that his true desire is to win popularity in his country without caring about the impact on bilateral relations.'
The spectre of a fresh spell of political turmoil may unnerve foreign investors, who have dumped a net US$2.3 billion of Thai stocks this year. The nation's benchmark stock index has slumped 22 per cent this year – among the worst performers globally – largely on concerns the US threat of a 36 per cent tariff will worsen the outlook for growth and hurt company earnings.
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The brewing crisis could lead to a dissolution of parliament, which would delay the new budget bill and disrupt fiscal policy, analysts at Asia Plus Securities, including Paradorn Tiaranapramote and Pawat Pattrapong, said in a note.
Hun Sen, father of Cambodian Prime Minister Hun Manet, confirmed on Facebook that he recorded the call and distributed it to about 80 Cambodian officials. He appeared angered by Paetongtarn's earlier criticism of Cambodia's 'unprofessional communications' after a nine-minute clip initially leaked online.
Tensions between the two neighbours have escalated since a May border clash in the disputed Chong Bok area left a Cambodian soldier dead. Both sides have since reinforced troops and restricted border crossings, while Phnom Penh imposed trade curbs. Diplomatic efforts to ease tensions have so far failed.
The fallout is particularly striking given the long-standing ties between the Shinawatra family and Hun Sen, who has referred to Paetongtarn's father, former Prime Minister Thaksin Shinawatra, as a 'brother.' The leak could undermine the Shinawatra-backed Pheu Thai Party's push for greater cabinet control over its conservative coalition partner, Bhumjaithai Party.
In the leaked clip, Paetongtarn, speaking through an interpreter, told Hun Sen her government was facing public criticism over the border issue and proposed a joint statement to resume normal crossings. Referring to him as 'uncle,' she urged him to ignore 'the opposite side,' a reference to the Thai military, and said its statements were unhelpful. She offered to 'take care of whatever' he needed.
The main opposition People's Party said Paetongtarn had 'completely lost' people's confidence by painting the Thai army as the common enemy of Cambodian and Thai governments.
'I call on the prime minister to take responsibility by dissolving the parliament,' opposition leader Natthaphong Ruengpanyawut said in a statement. 'This is to return the power to the people and prevent some groups from using this mistake to create situations that will hurt our democratic system.'
Former lawmaker Piyabutr Saengkanokkul warned the controversy could fuel talk of a military coup, a recurring feature of Thai politics.
'We urge and plead with the armed forces to carry on their duty in protecting the Thai borders, and not use this as a pretext for seizing power,' said senator Nantana Nantavaropas. BLOOMBERG

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