It has been reported that Virabongsa had just resigned from the Exim Bank board, whereas other candidates to replace Pridiyathorn either directly or indirectly denied they had been approached for the hot-potato job.

Pridiyathorn's resignation seemed to stun Prime Minister Surayud Chulanont, who refused to talk to reporters yesterday. However, the interim leader was said to be planning a press statement on Thursday. 

An informed source in the Council for National Security said Surayud had confided to a close aide that he was somewhat dismayed by the political development.

"He told the aide 'It's a pity' that Pridiyathorn," the CNS source said. "He also said he felt tired mentally."

The looming crisis will certainly re-fuel rumours that a discouraged Surayud might contemplating quitting the helm of the interim government. However, the CNS source expressed confidence that the prime minister would regroup and go ahead with his determination to help Thailand out of the political crisis. 

Earlier speculation on the finance portfolio replacement revolved around Deputy Prime Minister Kosit Panpiemras. Other possible contenders for the position included Ekkamol Khiriwat and Prasarn Triratvorakul, but reports said the two men denied having been approached.

Ekkamol is former deputy governor of Bank of Thailand and Prasarn is president of Kasikornbank.

Deputy Prime Minister and Finance Minister MR Pridiyathorn Devakula announced his resignation on Wednesday. He quitted with a stinging parting shot, suggesting he did not want to work with certain ministers who he claimed worked in favour of a certain media group.

"I already submitted my resignation to the prime minister. My decision is also based on the fact that they (certain ministers in this government) are working for the benefits of certain media outlet," Pridiyathorn said.

This government has shown several indications that it is working under influence of that media group, he charged. Such favours could lead of violation of laws, he added.

He did not identify the media group.

He also referred to the government's recent appointment of Somkid Chatusripitak, a former deputy premier in Thaksin government, to chief of economic panel responsible for explaining sufficiency economy to the international community.

Pridiyathorn and Somkid were known to be at odds due to different economic policies.

Somkid later resigned from the post after about a week of controversy, but his appointment triggered lingering rumours about Pridiyathorn's future in the interim Cabinet.

"It is not practical and unreasonable to appoint a person in Thaksin government to help this government on the sufficiency economy," said Pridiyathorn.

To him, the reason for the appointment was only an excuse and a bid to cover up certain hidden agenda that included relation with Thaksin government, he said.

"This issue is already ended but in an ambiguous way. And the connection with the previous government is still continuing. It is because a contact person with Thaksin government is still holding position in this government," he said.

However, he insisted he had parted ways with the prime minis¬ter on amicable terms.

"Prime Minister [Surayud Chulanont] has always accorded me with much honour and his lead¬ership has not been ambiguous," he said, thanking Surayud for stand¬ing by him after he had made the unpopular decision on capital con¬trols to stem the rising value of the baht.

The resignation rocked the embattled interim government which is expected to face increasing political and economic pressure.

Once considered one of the biggest asset of the interim government, Pridiyathorn has somewhat become a liability, following two major misfortunes in implementation of economic policies.

The stock market clashed in December after the government imposed a tough capital inflow control measure in a bid to contain the continued appreciation of the baht.

Shortly after, the foreign business community was up in arms against the government's plan to amend the foreign business act in a bid to solve the long-term problem of misuse of local nominees.

The Manager Daily of influential media tycoon Sondhi Limthongkul, known to be Pridiyathorn's political rival, has been constantly attacking him.

Meanwhile, PM's office Minister Thiraphat Serirangsan denclined commenting on Pridiyathorn's shocking decision.

Thiraphat is in charge of the Public Relation Department and has to deal with Sondhi's broadcasting businesses.