Democratic Progressive Party (DPP) lawmakers yesterday identified major procedural abnormalities in a scandal-ridden navy shipbuilding program that resulted in Ching Fu Shipbuilding Co (慶富造船) securing the contract, with three top military officials, including former minister of national defense Kao Kuang-chi (高廣圻), urged to expound on their involvement in the case.
DPP Legislator Wang Ding-yu (王定宇) pointed to flaws in the tender process and subsequent program management by the Ministry of National Defense, which “revived” Ching Fu from potential disqualification.
Ching Fu, which in 2014 was awarded the NT$35.8 billion (US$1.19 billion at the current exchange rate) contract to build six minesweepers as part of a domestic warship program, secured the contract after the ministry lowered the minimum asset requirement for bidders from one-10th to one-200th of the contract’s value.
Photo: Chang Chia-ming, Taipei Times
That year, a ministry tender review committee — without its convener and deputy convener present — drew lots to pick a contractor for the minesweeper program, with Ching Fu securing the contract over CSBC Corp, Taiwan.
In 2015, Ching Fu failed to acquire export permits from its subcontractors, Italian shipbuilder Intermarine and US defense firm Lockheed Martin, but the ministry did not dissolve its contract, despite the failure.
State-run banks approved a syndicated loan of NT$20.5 billion to Ching Fu, even though the company was determined to be financially unstable, Wang said.
DPP Legislator Chuang Ruei-hsiung (莊瑞雄) questioned how Ching Fu, which has registered capital of about NT$500 million, was able to secure a tender worth NT$35.8 billion.
Kao, former navy commander-in-chief Tung Hsiang-lung (董翔龍) and former navy deputy commander-in-chief Pu Tze-chun (蒲澤春) should explain decisions that appear to be tailor-made for Ching Fu, Wang said, adding that they might have been pressured into the arrangement.
The ministry might begin the contract dissolution process with Ching Fu by the end of this month, when Intermarine and Lockheed Martin are expected to dissolve their contracts with the firm, Wang said, adding that Ching Fu is on the brink of bankruptcy and its employees have not been paid in months.
“The dissolution of Ching Fu’s contracts with its subcontractors and its bankruptcy constitute a condition for the military to terminate the contract,” Wang said.
Following dissolution of the contract, the ministry would keep Ching Fu’s NT$9 billion performance bond and demand compensation for losses, he added.
LOUD AND PROUD Taiwan might have taken a drubbing against Australia and Japan, but you might not know it from the enthusiasm and numbers of the fans Taiwan might not be expected to win the World Baseball Classic (WBC) but their fans are making their presence felt in Tokyo, with tens of thousands decked out in the team’s blue, blowing horns and singing songs. Taiwanese fans have packed out the Tokyo Dome for all three of their games so far and even threatened to drown out home team supporters when their team played Japan on Friday. They blew trumpets, chanted for their favorite players and had their own cheerleading squad who dance on a stage during the game. The team struggled to match that exuberance on the field, with
Whether Japan would help defend Taiwan in case of a cross-strait conflict would depend on the US and the extent to which Japan would be allowed to act under the US-Japan Security Treaty, former Japanese minister of defense Satoshi Morimoto said. As China has not given up on the idea of invading Taiwan by force, to what extent Japan could support US military action would hinge on Washington’s intention and its negotiation with Tokyo, Morimoto said in an interview with the Liberty Times (sister paper of the Taipei Times) yesterday. There has to be sufficient mutual recognition of how Japan could provide
UPDATED TEST: The new rules aim to assess drivers’ awareness of risky behaviors and how they respond under certain circumstances, the Highway Bureau said Driver’s license applicants who fail to yield to pedestrians at intersections or to check blind spots, or omit pointing-and-calling procedures would fail the driving test, the Highway Bureau said yesterday. The change is set to be implemented at the end of the month, and is part of the bureau’s reform of the driving portion of the test, which has been criticized for failing to assess whether drivers can operate vehicles safely. Sedan drivers would be tested regarding yielding to pedestrians and turning their heads to check blind spots, while drivers of large vehicles would be tested on their familiarity with pointing-and-calling
A Taiwanese man apologized on Friday after saying in a social media post that he worked with Australia to provide scouting reports on Taiwan’s team, enabling Australia’s victory in this year’s World Baseball Classic (WBC), saying it was a joke and that he did not hold any position with foreign teams or Taiwan’s sports training center. Chen Po-hao (陳柏豪) drew the rage of many Taiwan baseball fans when he posted online on Thursday night, claiming credit for Australia’s 3-0 win over Taiwan in the opening game for Pool C, saying he worked as a physical therapist with the national team and
RSS