Thai Rak Thai Party leader Thaksin Shinawatra has doled out Bt200,000 for each of his MPs seeking re-election in a show of confidence that he can secure a comeback as prime minister and win the court battle over the disbanding of his party.

Thaksin remains upbeat while prosecutors are rushing to finalise pre-trial preparations in the electoral fraud case relating to the alleged bankrolling of small parties to contest the April 2 election. The case is expected to reach the Constitution Court on Monday.

"Thai Rak Thai will never be disbanded. It is a major party in Thailand and all hell will break loose if its extinction is decreed," a source quoted Thaksin as saying at yesterday's party meeting.

He told members to focus on meeting their constituents rather than panic over speculation about the party's future.

"Please rest assured that the new election will happen and that Thai Rak Thai will win another term under my leadership," he said.

Reacting to reports that Thaksin had inside information on the prosecution order against Thai Rak Thai, party executive Suranand Vejjajiva said Thaksin had heard about the matter from the local press.

"The ruling party had no advance warning," he said.

Suranand said the ruling party was innocent and was not involved in the bankrolling of small parties.

He said he had found no precedent for disbanding a ruling party anywhere in the world. In the United States, the Republican Party remained intact after the impeachment of President Richard Nixon, he added.

He also dismissed speculation that the party had conspired with the Election Commission in an attempt to dissolve the Democrat Party as a counterattack to pre-empt its dissolution.

Party secretary-general Suriya Jungrungreangkit said party executive Pongthep Thepkanchana would be the chief counsel to defend the party in the high court.

"I am confident that the party can clear all charges because it has never paid candidates from small parties to contest the polls," he said.

The ruling party released a statement denying involvement in any electoral fraud.

It expressed readiness to present its defence and called on relevant parties to play by the rules in order to have a new election as soon as possible.