Ms Nalinee, who is scheduled to be sworn in today, firmly told a press conference that she had done nothing illegal and her affiliations with Zimbabwean President Robert Mugabe and his wife Grace Mugabe were "strictly social".

The US Treasury Department's Office of Foreign Assets Control has imposed financial sanctions against her for her alleged involvement in several financial, real estate and gem transactions on behalf of Mrs Mugabe.

This follows Washington's sanctions on Mr Mugabe and people in his close circle for human rights abuses, political violence and partisan prosecutions, and those who provide assistance to the sanctioned targets.

Ms Nalinee said that over the years she has acted as a liaison officer for the Zimbabwean president and his wife during their visits to the Kingdom and helped coordinate and provide advice to their family members who pursued their studies here.

"Our relations have grown socially, not for business purposes," said Ms Nalinee, who was accompanied by Pheu Thai MPs and classmates of ousted prime minister Thaksin Shinawatra from the armed forces preparatory school.

She said that she never imagined her friendship and hospitality would result in her being sanctioned and the issue being politicised.

"I have never imagined that friendship will have adverse effects on me, especially when I've decided to enter politics," she said.

Ms Nalinee also pointed out that she was sanctioned, not blacklisted, by Washington.

She said that the word "blacklist" is being used to distort the facts or cause misunderstanding that she might have been involved in serious crimes such as arms smuggling or drug trafficking.

"To put it simply, it means that American people can't do business with me and I am prohibited from holding assets in the US," she said.

"The sanctions cover only American citizens. They have nothing to do with people of other countries and their governments."

Ms Nalinee said concerns that her appointment as a PM's Office minister would affect the country's business opportunities were groundless.

"The sanctions are political measures. It has nothing to do with criminal violations," she said.

She also said US authorities have never responded to her requests to clarify those allegations.

Ms Nalinee has hired a Washington-based law firm to represent her in attempts to clarify the allegations.

The US Treasury Department's Office of Foreign Assets Control has only acknowledged that she is represented by the firm.

Despite all this, Ms Nalinee said she was determined to serve as a cabinet member and asked for an opportunity to prove her ability.

Democrat spokesman Chavanond Intarakomalyasut yesterday raised possible connections between Ms Nalinee's appointment and Thaksin's mining businesses in African countries.

The ousted prime minister has made it known that he is involved in mining investments in Africa.

Mr Chavanond's observation was based on a news report about a mining company with Thaksin's affiliations being investigated over stock trading.

He said the appointment of Ms Nalinee may have something to do with it. She has expertise in mining and gems and close connections with several African leaders.

Mr Chavanond repeated calls for the government to review Ms Nalinee's appointment before the new cabinet members are sworn in today.

Democrat MP Thepthai Senpong said yesterday Ms Nalinee's appointment could wait.

"The prime minister should think more about the country than the cabinet. There are already two PM's Office ministers," he said.

Pheu Thai spokesman Prompong Nopparit yesterday denied that core members were pressuring Ms Nalinee to step down.

He said Ms Nalinee has the qualifications under the constitution to assume the cabinet portfolio.

"She should get a chance to work," he said. "And if the Democrat Party thinks she is unsuitable, it can seek a censure motion against her.

"It shouldn't try to bring down the government with this trick."

By Special correspondent