The government will implement measures to mitigate the potential risks to information security in the public and private sector stemming from a Chinese management software and service provider, Premier Wu Den-yih (吳敦義) said on Friday.
Wu made the remarks during a legislative question-and-answer session in response to questions by Democratic Progressive Party Legislator Pan Men-an (潘孟安), who said the government had failed to protect the nation against Data Systems Consulting (DSC), a Chinese-funded developer of an enterprise resource planning integrated information system.
DOMINANT POSITION
Based on a survey by CommonWealth magazine in 2006, Pan said DSC dominated the enterprises management software sector in Taiwan, with 63 percent of the nation’s top 1,000 companies and 31 percent of the nation’s 500 largest firms using its systems.
From 2000 through last year, DSC won more than 200 bids from government departments and state-owned enterprises, some of which involved classified projects, Pan said.
‘BLIND EYE’
Pan said the government had “turned a blind eye” to the fact that DSC had turned from a foreign-funded company into a Chinese-funded one, adding that the “lack of vigilance” could represent a threat to national security.
Initially registered as a foreign-funded company, DSC was recognized as a Chinese-funded corporation by the Investment Commission as a result of changes in its stockholder structure.
The Ministry of Economic Affairs’ Bureau of Foreign Trade awarded two contracts to DSC on Jan. 8 and Jan. 11, Pan said.
Pan asked that the government cancel the contracts as the deals were in violation of regulations proscribing certain items produced with Chinese capital, adding that the Ministry of National Defense (MND) should also review projects involving DSC.
ARMAMENTS BUREAU
Information security systems at the MND’s Armaments Bureau have a DSC connection, Pan said.
Minister of National Defense Kao Hua-chu (高華柱) said the ministry did not use China-made products in its information security management system and that it conducted examinations of related products to ensure systems integrity.
Wu, meanwhile, said that if it were proven that the company was funded by Chinese capital, the government would bar it from bidding for projects.
Wu said he would ask government departments to check information security systems that are operated by DSC and come up with remedial measures to address possible flaws.
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