BANGKOK (AFP) - Myanmar's Prime Minister General Khin Nyunt -- among the most reformist of the military regime's leaders -- has been sacked and placed under house arrest for alleged corruption, a Thai government spokesman said.
Myanmar state media said Tuesday he had stepped down for "health reasons" and a loyalist of the leader of the nation's hardline regime was appointed to take his place.
"The Thai government has learned through diplomatic channels... that the Myanmar Prime Minister Khin Nyunt was dismissed and detained under house arrest on corruption allegations," Thai government spokesman Jakrapob Penkair told reporters.
The premier, number three in the leadership, was arrested in a surprise move on Monday night after he returned to the capital from a visit to the central town of Mandalay, according to sources.
UN Secretary General Kofi Annan was "concerned" over the shake-up, his spokesman said.
"Noting the change in the top leadership of the government, the secretary general calls on the Myanmar authorities to remain committed to the process of national reconciliation and democratisation," he said in a statement.
Khin Nyunt, 65, was the face of the hardline regime overseas and supported dialogue with the detained opposition leader Aung San Suu Kyi who has been held for 16 months under house arrest.
But he appeared increasingly marginalised with the rise of hardliners within the leadership following a reshuffle last month, according to analysts.
Senior General Than Shwe, head of the junta known as the State Peace and Development Council, strongly opposes allowing Aung San Suu Kyi any role in the political process.
Analysts saw Khin Nyunt's arrest as a consolidation of Than Shwe's power. Lieutenant General Soe Win, a senior ally within the junta, was appointed to the premiership, state media said.
Analysts said the move was likely to signal a continued hard line against party supporters of Aung San Suu Kyi, who is under her third period of house arrest.
The sacking was the culmination of growing tensions between rival factions within the leadership, sources in Myanmar said.
An analyst in Yangon said the sacking was likely to have major repercussions and followed feuding between military intelligence, headed by Khin Nyunt for 20 years, and the main body of the military leadership.
Businesses, including travel companies and mining concerns, run by military intelligence have come under scrutiny in a sign of growing tension.
More than 40 senior military officials were detained in Mandalay this week in connection with corruption allegations amid signs of a crackdown against Khin Nyunt supporters.
The authorities also moved against an Internet company run by the former premier's son and stopped it from operating, according to sources.
"They must have reached an impasse to come to such a situation that is putting in danger the unity of the army. This is a first," said the analyst.
The isolated regime closed its border checkpoints as the drama played out and telephone communication with Yangon became difficult amid swirling rumours of high-level changes.
Thai security sources said Lieutenant General San Pwint, who has been involved in a drug crackdown and negotiations with opposition ethnic groups, would replace Khin Nyunt as head of military intelligence. He is not seen as a strong ally of either faction.
"I don't think there wil be any unrest or bloodshed in Myanmar concerning this change as Myanmar is known for its decisive action," Thai deputy prime minister Chavalit Yongchaiyudh told reporters.
The 400,000-strong Myanmar military was keeping a low profile in Yangon on Tuesday although troops were seen at key points in the city, according to an AFP correspondent.
Khin Nyunt was appointed premier in August 2003, soon after Myanmar was condemned internationally for the detention of Aung San Suu Kyi following a violent clash between her supporters and a pro-junta mob.
He announced a seven-point "road map to democracy" but the programme has stalled amid international complaints that it is a sham while Aung San Suu Kyi remains under house arrest.
Her party, the National League for Democracy (NLD), won national elections in 1990 but was not allowed to rule by the military.
The junta has ruled since 1962 and faced mounting international sanctions from the European Union and the United States because of a lack of democratic reform.