Fri, May 08, 2009 - Page 1 News List

France, Thales to pay out over Lafayette deal: report

By Loa Iok-sin  /  STAFF REPORTER

After nine years of investigation, an international arbiter has concluded its probe into the sale of Lafayette warships to Taiwan. The French government, along with Thales (formerly Thomson-CSF), may be required to pay 1 billion euros (US$1.3 billion) to Taiwan in compensation, Paris-based newspaper Le Parisien reported yesterday.

The three judges are still working on their verdict, but will have it ready in three to four months, a lawyer was quoted as saying.

However, a lawyer for Thales said that if it were to give back US$5 million to the Taiwanese government — the equivalent of the amount that the broker in the arms sale deal, Andrew Wang (汪傳浦), had in his account — the compensation could possibly be reduced, the report said.

When reached for comment, Ministry of National Defense spokesman Yu Sy-tue (虞思祖) told the Taipei Times that the ministry “has not yet received any updated information from France.”

The case stemmed from the Taiwanese Navy’s procurement of six Lafayette-class frigates from French defense company Thomson-CSF. A 2001 investigation concluded that as much as US$400 million in kickbacks may have been paid. Allegations emerged after the body of Captain Yin Ching-feng (尹清楓), who ran the arms acquisitions office, was found floating in the sea off Ilan in 1993.

ADDITIONAL REPORTING BY AGENCIES

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