Tue, Jul 29, 2003 - Page 2 News List

Lawmaker cries foul over military contract

By Brian Hsu  /  STAFF REPORTER

The combined logistics command (CLS) was accused of favoritism by a KMT lawmaker in the selection of a civilian company to run one of its production units yesterday.

KMT Legislator Liao Wan-lu (廖婉如), a member on the legislative National Defense Committee, said at a press conference yesterday that the civilian company which won the bid to operate the 302nd factory of the CLS got the contract because it has employed several retired CLS officials.

In response, the CLS acknowledged that several retired CLS officials are working for the company but that it has been more than three years since they left the military.

A spokesman for the CLS said these former CLS officials have the same right to work as any other civilians and that it does not make sense to ask them not to be involved in any business which might have connections with the military.

The Kaohsiung-based factory, which produces clothing of various kinds for the military, has been the focus of attention and concern from certain lawmakers since it was announced three years ago by the Ministry of National Defense that the production unit would be the first to undergo privatization by means of GOCO, or government-owned and company-operated, restructuring.

The bidding for the contract to operate the 302nd factory was completed last week, with a medical-supplies company winning the bid.

Only two companies bidded for the contract. The winner was selected on the basis of operation plans and benefit packages it could present.

The CLS denied that there was any foul play in the bidding process and that the other company which lost the bid should have tried to offer better terms of cooperation.

"Privatization of a government-owned production unit like the 302nd factory is not aimed at enriching only a small group of people. It should bring benefit to the two sides," an official with the CLS said.

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