The talks will look at whether the deal can be cancelled or if the BMA will have to accept the remaining lot of vehicles from Steyr Daimler Puch, Deputy Bangkok Governor Wanlop Suwandee said. He spoke after a 90-minute meeting with Christian Fuchs, the new boss of Steyr Daimler Puch.

Wanlop said he would head the BMA negotiating panel, while the supplier would set up a team of negotiators. "Our negotiations will be based on mutual benefit and are likely to begin this month."

Several incumbent senior officials as well as former officials are suspected of malfeasance in the Bt6.68-billion deal, which goes up to Bt8 billion with tax. The Department of Special Investigation has concluded that the vehicles were overpriced and is set to refer the case to the National Counter Corruption Commission.

The deal was made at government-to-government level when then Interior minister Bhokin Bhalakula signed an agreement of understanding (AOU) with the then Austrian Ambassador to Thailand, Herbert Traxl, two years ago.

Senator-elect Samak Sundaravej, who signed the purchase agreement while acting Bangkok governor, said the AOU would have not have taken effect if the BMA had not subsequently issued a Letter of Credit.