Thaksin Shinawatra, prime minister of Thailand until September 2006, was listed as Thailand’s fourth richest man with assets worth about US$ 2 billion.

Overthrown in a military coup, he fled and has been living abroad for the past year. Back at home, he was sentenced to two years in jail in a corruption case.

According to current Prime Minister Abhisit Vejjajiva, the former prime minister, who has several passports, must return to Thailand to face justice.

Meanwhile Cambodia’s decision to hire Thaksin is bound to fuel tensions between Phnom Penh and Bangkok, who have been at loggerheads for more than a year by a border dispute.

In June 2008, troops from the two countries faced off near the Preah Vihear temple, an 11th century archaeological site that was granted World Heritage status last year.

An official statement on Cambodian TV said Mr Thaksin was facing politically motivated charges in Thailand.

A government spokesman said that Cambodia valued Mr Thaksin's qualities and experience and that he would be an asset to the country.

The appointment comes two weeks after Prime Minister Hun Sen offered Thaksin political asylum.

So far, Bangkok has not commented the decision, stressing that the appointment was an internal matter for Hun Sen's government, but also saying that it would push for the extradition of billionaire Thaksin if he sets foot in Cambodia.