Bangkok Governor Apirak Kosayodhin is set to discuss with Interior Minister Aree Wongsearaya whether to scrap the overpriced Bt6.68-billion deal to buy fire vehicles from an Austrian supplier.

On Monday, the Assets Examination Committee (AEC) ruled there were grounds to believe that five officials - former and incumbent - acted corruptly in preparing the deal that caused Bt1.9 billion of damage to the country.

"We will discuss whether we can scrap the contract," Apirak said.

Under the deal, the fire vehicles were to be used for the Bangkok Fire and Rescue Department - a unit under Bangkok Metropolitan Administration (BMA). The Interior Ministry oversees the BMA.

The deal can be traced back to 2004 when Bhokin Bhalakula, in his capacity as interior minister, signed an agreement of understanding with the Austrian ambassador to Thailand to buy fire-engines, fire-boats and other fire-fighting equipment for the Bangkok Fire and Rescue Department.

Bhokin's then-deputy Pracha Maleenont - and assistant secretary Somsak Khunngern - helped in preparing the agreement.

The former Bangkok governor Samak signed the purchase agreement just before his term ended. Austrian company Steyr Daimler Puch was named as the supplier. Pol Maj-General Atilak Tanchukiat, who heads the BMA's Bangkok Fire and Rescue Department, was also involved in the process.

"We now have to solve the problem," Apirak said.

Deputy Bangkok Governor Vallop Suwandee said the Interior Ministry-established panel, which comprises representatives from seven agencies, suggested that if there were grounds of corruption, it would be possible to annul the deal.

"So far, the purchase agreement doesn't mention the termination of the contract. It only says that should any dispute arise, both parties will have to reach a negotiation," Vallop said.

He said the BMA would try to reach a conclusion with the ministry on the issue by this week, after which the supplier would be informed.

According to the purchase agreement, if the BMA and Steyr Daimler Puch could not reach a satisfactory solution, the case would be referred to the International Chamber of Commerce in Paris and an arbitration panel would be set up to resolve the case.

In a related development, Democrat Party spokesman Yuthapong Jarassathien said he would petition the Austrian ambassador to Thailand and the US ambassador to Thailand to help investigate the deal because it was mired with corruption.

Although Steyr Daimler Puch is an Austrian company, its major shareholder is a US company.