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Seven detained in defense contract kickback scandal

Three officials from the Ministry of National Defense's Armaments Bureau and four businessmen were detained yesterday for alleged involvement in a number of bidding scandals.

The three military officers, surnamed Wu, Lee and Chang, were detained on suspicion of receiving bribes from the businessmen to help them win tenders.

The businessmen also allegedly entertained the three officers with prostitutes.

All seven could be charged with corruption and leaking confidential military information.

Keelung prosecutors on Monday searched the Armaments Bureau and the businessmen's companies and residences and seized a number of documents.

Prosecutors said military trio were in charge of inviting public tenders for a number of armament procurements.

They allegedly leaked the terms of the tenders to the businessmen and helped them win the tenders in return for kickbacks.

Early yesterday morning, the Keelung prosecutors transferred the three officers to military prosecutors for further investigation. Military prosecutors later detained the trio.

The four businessmen, Su Chih-yung (蘇志勇), Kuo Chieh-hung (郭建弘), Chang Shu-hua (張淑華) and Hsu Chung-chou (許中州), were detained by the Keelung District Court.

Prosecutors allege Su served as the go-between for the trio from the ministry and the businessmen.

Prosecutors allege Su invited the other six to dine in hostess bars several times and entertained the officers with prostitutes after the dinners.

One of the officers is enrolled in a doctoral program at the National Defense University, and prosecutors allege Su even invited the man's professor on one of the excursions to a hostess bar.

Minister of National Defense Lee Tien-yu (李天羽) told reporters in the legislature yesterday that he was sorry to learn of the scandal.

He said the military would thoroughly probe the case and punish any officers or officials found to be involved in the scandal.
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