By Pracha Hariraksapitak
UDON THANI, Thailand (Reuters) - Thai Prime Minister SamakSundaravej vowed on Monday not to resign or dissolve parliamentahead of a court ruling that could force him from power in lessthan 24 hours.
"I declare that I will not dissolve parliament. I will notquit. I will fight on," the 73-year-old told thousands ofcheering supporters in the northeastern town of Udon Thani,stronghold of his ruling People Power Party (PPP).
"This government has done nothing wrong," he said.
Despite his defiance, it could be one of his last speechesas leader. Thailand's Constitutional Court will rule at 2 p.m.(8 a.m. British time) on Tuesday whether Samak broke the law byhosting television cooking shows while in office. If foundguilty of conflict of interest, he will have to step down alongwith his cabinet, satisfying the demands of protesters from thePeople's Alliance for Democracy (PAD) barricaded inside hisofficial compound for the past two weeks demanding he quit.
Senior figures inside the seven-month-old administrationare braced for the worst.
"We expect it to be bad," one government source toldReuters.
The speed with which the court processed the cooking showcase surprised insiders and analysts, although speculation hasbeen mounting about the courts finding a short-term solution tothe stalemate over the PAD's occupation of Government House.
The tension spilt over into bloodshed last week when a manwas killed in a street battle between pro- and anti-governmentgroups, triggering the declaration of a state of emergency thatthe highly politicised army chose to ignore.
A ruling against Samak could lift Thai shares, traderssaid. The main index rose 3.08 percent on Monday, but stilllagged behind other Asian markets.
CRISIS WON'T END
The constitution bans the prime minister and cabinetministers from working for profit-oriented private entities.
The embattled prime minister appeared in court on Monday,denying he was paid a salary by a private media company to dothe shows "Tasting, Grumbling" and "Touring at 6 a.m.".
"I was hired, but not their employee," Samak told the courtin a televised hearing. He gave up hosting the shows in April,more than two months after he was sworn in as prime minister.
The case stems from a complaint made by senators on May 25,the day the PAD launched its street campaign against Samak.
Whatever its outcome, the ruling is unlikely to resolve thedeep political divisions that have riven Thailand for the pastthree years. Some analysts say he may even be able to return asprime minister.
One of his ministers, Chaiya Sasomsap, did just that,standing down as health minister after the court disqualifiedhim on account of his wife's shareholdings, before returning tothe cabinet weeks later as commerce minister.
"Even if Samak has to go, the crisis won't end," SomyosChamchoy of brokerage Kasikorn Research said. "Parliament willvote for him as the prime minister again and the coalitionpartners will stick together."
Two years after its removal of then prime minister ThaksinShinawatra in a coup, the army has insisted it will notintervene, but senior officers acknowledge the political crisishas reached a stalemate.
If the deadlock continues, or more people are hurt orkilled, it could also trigger a move by revered King BhumibolAdulyadej, who has stepped into disputes in the past.
In 2006, when Thaksin was facing a prolonged campaign bythe PAD, the king summoned the country's top judges to tellthem to resolve the political "mess" after the oppositionboycotted a general election, rendering the result void.
(Additional reporting by Chalathip Thirasoonthrakul;Writing by Darren Schuettler; Editing by Alan Raybould and PaulTait)
