The Ministry of Justice yesterday confirmed that progress has been made in its pursuit of illegal payments made in the long-running Lafayette frigate scandal.
Switzerland on Thursday announced that it would return part of the US$900 million it confiscated over corruption allegations linked to the case, which dates back three decades.
“In the frigates case, Switzerland will restitute nearly US$266 million to Taiwan,” the Swiss Department of Justice and Police said in a statement, referring to the “illegal commissions” paid during a US$2.8 billion deal to buy six Lafayette-class frigates in 1991.
The statement said the restitution was made possible under a ruling by Taiwan’s Supreme Court in late 2019 that confirmed the illegal provenance of the funds and ordered their confiscation.
However, the statement also said the court ruling had not proven that the other frozen funds were derived from corruption, so “the sequestration of these assets will be lifted.”
It implied that it could be the last restitution by Switzerland in the corruption case.
The ministry said that Taiwan and Switzerland have mutual legal assistance in criminal matters.
Such mutual aid “will continue in terms of the [Lafayette] case,” it added.
As progress has been made, the prosecuting authorities responsible for the case will address follow-up matters and provide legal assistance any time it is required, so the illicit assets are returned as soon as possible, it said.
The high-profile case involves French former state-owned firm Elf Aquitaine, which allegedly paid bribes — which ended up in Swiss bank accounts — to persuade French and Taiwanese authorities to approve the sale of the frigates.
The warships were sold via another French firm, Thomson-CSF (now Thales), to Taiwan’s navy in a US$2.8 billion deal in 1991, a price said to include kickbacks and bribes that facilitated the purchase.
In 2001, Taiwan submitted a request to Switzerland for legal assistance about the suspected kickbacks.
In 2005, Switzerland froze almost US$900 million in assets and handed over to Taiwan numerous documents concerning blocked bank accounts.
In 2007, Switzerland, with the agreement of the account holders, returned a first tranche of US$34 million to Taiwanese authorities.
Of the US$900 million in illicit funds related to the Lafayette scandal, about US$487 million went to deceased arms broker Andrew Wang (汪傳浦) in the form of kickbacks, which were deposited in several countries, mainly in Switzerland, Taipei District Court information showed.
Charges against Wang, wanted over the kickbacks and his role in the death of navy officer Yin Ching-feng (尹清楓) in 1993, were dropped after Taiwanese officials based in London confirmed his death in the UK in 2015.
Yin is widely believed to have been murdered because he was ready to blow the whistle on those who accepted kickbacks in the frigate deal.
In April 2014, the Supreme Court sentenced former navy captain Kuo Li-heng (郭力恆) to 15 years in prison for accepting US$17 million in kickbacks in connection with the frigate deal.
The court also ordered Kuo and Wang to return US$340 million frozen in foreign bank accounts.
The now-disbanded Special Investigation Division of the Supreme Prosecutors’ Office filed a request with the Taipei District Court to seize Wang’s illicit profits on July 1, 2016, after a legal amendment took effect that day, allowing courts to order the confiscation of alleged illegal profits without a criminal conviction or sentencing.
Palauan President Surangel Whipps Jr arrived in Taiwan last night to kick off his first visit to the country since beginning his second term earlier this year. After arriving at Taoyuan International Airport at around 6:30 pm, Whipps and his delegation were welcomed by Minister of Foreign Affairs Lin Chia-lung (林佳龍). Speaking to gathered media, the Palauan leader said he was excited and honored to be back in Taiwan on his first state visit to Taiwan since he was sworn in this January. Among those traveling with Whipps is Minister of State Gustav N. Aitaro, Public Infrastructure
President William Lai (賴清德) yesterday thanked Palau for its continued support of Taiwan's international participation, as Taipei was once again excluded from the World Health Assembly (WHA) currently taking place in Switzerland. "Palau has never stopped voicing support for Taiwan" in the UN General Assembly, the WHO and other UN-affiliated agencies, Lai said during a bilateral meeting with visiting Palau President Surangel Whipps Jr. "We have been profoundly touched by these endorsements," Lai said, praising the Pacific island nation's firm support as "courageous." Lai's remarks came as Taiwan was excluded for the ninth consecutive year from the WHA, which is being held in
RESOLUTIONS DEBATE: Taiwan’s allies said that UN and WHA resolutions cited by China and other nations ‘do not determine Taiwan’s participation in WHO activities’ A proposal to invite Taiwan to this year’s World Health Assembly (WHA) was rejected on Monday, resulting in Taipei’s absence from the annual meeting for a ninth consecutive year, although partners spoke up for Taiwan’s participation at the first day of the meeting. The first agenda item after the opening was a “two-on-two debate” on a proposal to invite Taiwan to participate at the WHA as an observer. Similar to previous years, two countries made statements in favor of the proposal, while two others expressed their opposition. Philippine Secretary of Health Teodoro Herbosa, president of the 78th WHA, accepted the WHA General Committee’s
At least three people died and more than a dozen were injured yesterday afternoon when a vehicle struck a group of pedestrians in New Taipei City’s Sansia District (三峽). The incident happened at about 4pm when a car rammed into pedestrians at an intersection near Bei Da Elementary School. Witnesses said the sedan, being driven at a high speed, ran a red light, knocking scooters out of the way and hitting students crossing the road before careening into a median near the intersection of Guocheng and Guoguang streets. The incident resulted in three deaths and 13 injuries, including the driver, a 78-year-old man