Print

Mail

wiki links

Government to drop investment in private arms firm

Newly appointed Minister of National Defense Michael Tsai, left, answers questions about the arms firm Taiwan Goal in the legislature yesterday. Tsai is accompanied by Premier Chang Chun-hsiung. PHOTO: CNA

Premier Chang Chun-hsiung (張俊雄) said yesterday the government would cancel its intended investment in the private arms company Taiwan Goal because confidential internal documents had been leaked.

Speaking outside the legislature, Chang said the Cabinet canceled its plan to fund the company because the leak had damaged the trust between Taiwan and other countries.

The existence of the company could also arouse concerns from other countries, he said, adding that Taiwan Goal had been unable to reach the objectives set by the government.

He did not specify what these confidential documents were, nor did he clarify which countries had been discussing cooperation with Taiwan Goal.

Chang confirmed the existence of Taiwan Goal on Feb. 15, following a report by the Chinese-language China Times.

The fact that 45 percent of the newly established arms firm's initial capital would come from the Ministry of National Defense (MND) had sparked speculation from the Chinese Nationalist Party (KMT) that the government would seek to profit from the company.

During his administrative report to the legislature on Friday, the premier defended Cabinet policy by saying that Taiwan Goal would not be disbanded.

However, the Cabinet announced a sudden halt to government investment in the company on Saturday after former minister of National Defense Lee Tien-yu (李天羽) surprised many by resigning over controversy.

Chang yesterday again dismissed the pan-blue camp's concerns that the company could make illegal profits from arms trade, adding that the company had not received funding from the government or signed contracts with anyone.

During a question-and-answer session with KMT Legislator Chiu Yi (邱毅) later yesterday, Chang said the Cabinet would urge the MND to investigate personnel related to the establishment of the company to determine if any were involved in illegal activity.

New Minister of National Defense Michael Tsai (蔡明憲) told KMT Legislator Justin Chou (周守訓) at another session that the ministry would publicize a list of military personnel who would be reprimanded for their role in the controversy.

Meanwhile, Chang said the Cabinet did not have any power to disband Taiwan Goal, adding that the Taipei City Government had the authority over the matter, as the firm is registered there.

Asked for comment, Taipei Mayor Hau Lung-bin (郝龍斌) refuted the premier's remarks.

"Taiwan Goal did not file any [registration] application at the city government's Office of Commerce. Moreover, a company cannot be disbanded unless its board members have decided to do so," Hau said.

"I believe [disbanding the company] has nothing to do with the Taipei City Government. No one at the city government doubles as a board member at the firm. Everyone knows this. This is common sense," he said.

In related developments, Tsai yesterday downplayed the impact of the information leak related to the Po Sheng ("Broad Victory") system -- a sophisticated command, control and communications network the government is purchasing from US defense contractor Lockheed Martin.

Tsai was referring to the arrest, by US law enforcement officials on Feb. 11, of three people on charges of spying for China to obtain top secret information on US arms sales to Taiwan over a period of more than two years.

"The Po Sheng system is still under construction. It has not been fully implemented. So far the security [of the system] has not been compromised," Tsai said when responding to questions by Democratic Progressive Party Legislator Lee Chun-yee (李俊毅).

Tsai said that the seriousness of the leak would not be known until the FBI had concluded its investigation.
This story has been viewed 1056 times.