The Taoyuan District Court yesterday ruled that three officials from the military Chung-Shan Institute of Science and Technology (中山科學研究院) be detained for allegedly taking kickbacks.
According to sources, the defense ministry learned of the kickback scandal as early as last month. Following this, a prosecutor from the Military Court Prosecutor General's Office last week conducted an investigation at the institute.
The prosecutors said three civilian researchers, Chao Yu-hsin (趙裕新), Chang Le-yu (張樂愚) and Lin Lo-chung (林駱忠) from the institute's chemistry department, had earned illegal profits amounting to more than NT$20 million since 1992.
According to prosecutors, the three officials, who were in charge of a large number of weapons parts purchases, leaked the ceiling prices for items under NT$1 million to certain suppliers, allowing them to get the contracts.
The three then skimmed 10 to 20 percent off the total price as a kickback, the prosecutors said.
Prosecutors on Monday evening requested that the court detain the three on corruption charges. The request was approved yesterday morning.
The charge carries a minimum prison term of at least seven years.
Media reports said that prosecutors found NT$7 million in a drawer in Chao's office.
On Monday prosecutors and Ministry of Justice Investigation Bureau officials also questioned seven businessmen, but later released them.
Meanwhile, the Ministry of Defense yesterday denied that the purchases involved in the scandal were related to Hsiungfeng-II anti-ship missiles.
The deputy director of the chemistry department said the scandal revolved around the personal affairs of some of its employees.
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