"Please explain to foreign countries or they may think I am intoxicated with power," he told journalists after a clash with an ABC reporter in Bangkok.
Mr Prayuth plans to lift martial law 10 months after toppling Thailand's democratically-elected government but intends to invoke Article 44 of a junta-imposed interim constitution that gives him power over all aspects of government, law and order, and absolves him of any legal responsibility for his actions.
"Don't worry. If you're not doing anything wrong, there's no need to be afraid," the former army general said after a cabinet meeting.
Mr Prayuth has asked Thailand's King Bhumibol Adulyadej to approve the lifting of martial law that bans gatherings of more than five people and gives soldiers sweeping powers.
Approval is expected to be a formality.
Tour operators have complained the law has damaged tourism that accounts for more than 10 percent of Thailand's economy.
But Mr Prayuth's decision to invoke Article 44 has been criticised by human rights groups, lawyers, political parties and academics who argue that one person should not have unchecked power.
Under a similar law in the 1960s a Thai dictator carried out summary executions.
Mr Prayuth, who last week sarcastically said he could execute journalists who asked him questions, appeared irritated when asked about democracy during a press conference.
He said Article 44 would be applied in a constructive way, as the law gives officials a mechanism to deal with perpetrators of wrongdoings without the hassle of red tape.
He undid some buttons of his shirt to explain to ABC reporter Samantha Hawley that Thai democracy was a case of wrong buttons in the wrong holes.
He said the result was not only that the shirt was wrinkled but even the trousers looked untidy.
Mr Prayuth has said he will allow elections but has given no timetable for relinquishing power.
"Don't worry. If you're not doing anything wrong, there's no need to be afraid,"
That's a great quote, taken straight out of the NSA handbook.
Posted by Tbs on April 1, 2015 11:35