Anand Panyarachun, chairman of the now defunct National Reconciliation Commission, meets Democrat Party leader Abhisit Vejjajiva to discuss ways to restore peace in the South.

The deal sparked a corruption scandal after the Department of Special Investigation (DSI) concluded the equipment had been priced a few billion baht higher than the market price.

While all the fire-boats, fire-trucks and fire-fighting equipment included in the deal were intended for the Bangkok Fire and Rescue Department, the deal was based on a government-to-government agreement of understanding (AoU).

The Bangkok Metropolitan Administration (BMA), led by Bangkok Governor Apirak Kosayodhin of the Democrats, oversees the Bangkok Fire and Rescue Department.

Based on the AoU, the BMA later signed a purchase agreement with Austrian company Steyr Daimler Puch and opened a letter of credit.

Alongkorn submitted a letter to Thaksin's deputy secretary-general, Veerakorn Kamprakob, calling on Thaksin to rescind the relevant Cabinet resolutions, AoU and the contracts.

He also urged authorities to suspend payments to the Austrian supplier.

After receiving the letter, Veerakorn said the deal fell into the category of special procurement cases and the BMA, with the approval of the Bangkok governor, could terminate any contract without having to seek Cabinet approval.

Alongkorn said the deal was not a special-procurement case that the BMA could terminate, citing the government-to-government AoU.

Alongkorn will today meet Deputy Prime Minister and Commerce Minister Somkid Jatusripitak to investigate alleged irregularities in a counter-trade agreement signed by Steyr Daimler Puch and the Foreign Trade Department.

Last week, Alongkorn urged the Office of the Attorney-General to work with the US Justice Department to probe cross-border bribery cases.