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Taiwan Goal to disband on March 13

The controversial arms firm Taiwan Goal is scheduled to be disbanded on March 13, company president Wu Nai-jen (吳乃仁) said in a terse statement yesterday, adding that a provisional shareholders meeting would be held on March 12 to discuss the final details of the company's dissolution.

Wu, a Democratic Progressive Party stalwart and former chairman of China Steel Machinery Corp, had said last Saturday in another statement that he would hold a shareholder meeting in the following days to discuss whether to dissolve the company.

At the time, he lambasted the media and the pan-blue camp for spreading inaccurate information about the arms firm and its mission, which he said was to invigorate and improve the domestic arms industry.

False reports about the firm, the statement said, undermined the effort to create a private corporation to bolster the nation's defense technology.

Premier Chang Chun-hsiung (張俊雄) earlier last month confirmed that Taiwan Goal had been created following media reports of its existence. At the time, he stressed the defense company was a full-fledged private business entity, despite the fact that it was established with investment from various government agencies and state-owned corporations.

Lee Tien-yu (李天羽), then national defense minister, said that 45 percent of the company's initial investment came from the Ministry of National Defense.

It was reported that Taiwan Goal was officially registered with the Ministry of Economic Affairs on Jan. 28 with capital of NT$1 billion (US$31.15 million) and paid-in capital of NT$80 million.

The arms firm immediately drew fire from the Chinese Nationalist Party (KMT), which said the government should not be involved in an arms firm. It also said Taiwan Goal, as a private firm, could dodge legislative monitoring.

The KMT caucus on Feb. 19 threatened to set up a special investigation committee to probe Taiwan Goal unless the company disbanded by yesterday.

On Feb. 23, Lee tendered his resignation from the ministry amid mounting controversy over the establishment of the arms firm. Lee said he decided to resign to take responsibility for the doubts and controversy that erupted, saying he had failed in carrying out the order to establish an arms firm.

President Chen Shui-bian (陳水扁) defended the foundation of Taiwan Goal, saying the arms firm was based on similar firms in many Western countries. He said that the nation's international isolation made arms procurement extremely difficult through official channels.

US-Taiwan Business Council president Rupert Hammond-Chambers said last Sunday in Washington that he did not think the creation of the company was a prudent move for Taiwan at this time, especially if it wanted to play a role in the arms industry.

He said Taiwan should take advantage of its world-class private technology industries, whose expertise could help it become a major player in developing military technology.
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