Earlier this week, the Assets Examination Committee (AEC) said the deal had caused Bt1.9 billion in damage to the country.

It also said there were grounds to believe that five officials - former and incumbents - were involved in corruption in the deal to procure the fire-fighting vehicles from the foreign supplier.

"The OAG will be able to interpret whether the purchase agreement remains effective," Bangkok Governor Apirak Kosayodhin said yesterday.

He was speaking after he met Interior Minister Aree Wongse-araya to discuss the flawed deal. "The Interior Ministry has agreed with us," Apirak said, and added the ministry will also write to the AEC to ask for its fact-finding report.

The city governor said the concerned authorities should be able to reach a conclusion very soon on how to proceed with the deal.

Based on the Agreement of Understanding signed by then interior minister Bhokin Bhalakula and the Austrian ambassador to Thailand in 2004, the purchase agreement for the fire-fighting vehicles from the Austrian supplier was prepared and put into effect.

Samak Sundaravej, the acting Bangkok governor, sealed the purchase agreement. Despite showing concerns about the deal, Apirak abided by the agreements and opened the letter of credit.

The AEC has named Bhokin and Samak among the five officials suspected of corruption - but did not think Apirak was involved.

Yesterday, Samak went to Government House and handed out his seven-page document to reporters detailing why he should not be held responsible for the deal.

According to Samak, he had already asked the Council of State whether he could sign the purchase agreement while serving as the acting city governor and the answer had been "yes".

On July 23, 2004, he inked the purchase agreement but did not confirm the Letter of Credit.

In his documents, many people complained about the deal in October 2004 and yet Apirak went ahead and opened the letter of credit on January 6, 2005.

Jeerawan Prasomsap

The Nation