Many investigations have concluded the deal is full of irregularities and the vehicles - both tenders and boats - are grossly overpriced. No one has been held accountable and the deal is proceeding.

In addition, the vehicles have been parked in Thailand but cannot be put into service.

The Customs Department is seeking Bt1.2 billion in import duty from the Bangkok Metropolitan Administration (BMA).

According to one probe, even without import duty, these vehicles have cost the BMA and the central government Bt4.53 billion more than they should have. If the same type and number of vehicles had been purchased locally, the cost would have been Bt2.15 billion.

The BMA is reluctant to pay the duty but has been unsuccessful in winning an exemption.

The deal has its genesis in the administration of former governor Samak Sundaravej. Samak wanted to buy the vehicles because the Austrian government had agreed to a barter deal and the vehicles would complement the administration's Fire and Rescue Department.

The interior minister at the time, Bhokin Bhalakula, approved the Samak proposal and signed an agreement of understanding with the then Austrian ambassador to Thailand. The agreement with supplier Steyr Daimler Puch mentioned nothing of barter-trade settlement. It demanded a purchase agreement signed within 30 days.

Evidence now shows the BMA spent just five days doing paperwork and negotiating prices. Samak signed the purchase agreement while acting governor.

His successor, incumbent Apirak Kosayodhin, was immediately worried but because of concerns over legal repercussions and bilateral ties, he inked a letter of credit.

Since then, many have attempted to find those responsible for the lop-sided agreement.

Last year, the Department of Special Investigation found malfeasance by seven ranking officials and former officials. Sources said they included Bhokin, Samak and Apirak. So far, no proof of any corruption has been found and until it is then the deal cannot be cancelled.

Interior Minister Aree Wongsearaya recently told the Cabinet the agreement was enforceable and the government and BMA had to pay. The first instalment was Bt845 million.

The government will shoulder 60 per cent of the cost and the BMA the rest. The BMA will borrow its share from Krung Thai Bank.

Any cash the bank lends the BMA for the deal will have to be repaid if the deal is finally scrapped, so the BMA is waiting for the results of an Assets Examination Committee (AEC) investigation before coughing up.

Sources close to the AEC said the investigation would pinpoint irregularities and recommend further investigation only.

It is unclear how much longer it will be before this controversy is cleared up and by that time the vehicles could have rusted away.

Chularat Saengpassa

The Nation