Government and affiliated agencies are on high alert for government contractors that use Chinese-made components, or companies previously blacklisted seeking to obtain government contracts by establishing headquarters in other countries.
Local media on Thursday reported that K-Best (全波科技), after obtaining a government contract in March 2023 for NT$26.30 million (US$803,176), allegedly obtained components from Chinese companies, assembled the product and delivered it to Ministry of National Defense-affiliated Chungshan Institute of Science and Technology.
The report said the equipment had allegedly been incorporated into the army’s 21st Artillery Command, the 43rd Artillery Command and the Jioupengwan Base and was targeted for investigation by the ministry’s Military Security Division before the institute ordered the recall of the equipment.
Photo: Taipei Times
The institute on Friday said it uncovered a discrepancy between the components in the equipment delivered and the specifications in the contract during internal tests and had fined the subcontractor, per the contract.
All Chinese-made components have been removed and replaced with non-Chinese-made components, it said.
K-Best has been blacklisted and the institute has forwarded information to the judiciary for investigation, it said, adding that the company could face criminal charges.
Separately, Democratic Progressive Party (DPP) Legislator Wang Ting-yu (王定宇) on Friday confirmed that the air force has put a purchase agreement on hold, because the company in question is allegedly a front for a company flagged by the ministry for contract violation.
Wang made the remarks after local media reported that the Taipei Economic and Cultural Representative Office Defense Mission to the US had awarded a bid worth NT$12 million to Amroc International Corp (竣達企業).
The report said the company was registered to a private residence in Los Angeles, and shared a name with another that had contravened a procurement contract for the air force’s Chihhang Air Base and is blocked from obtaining military procurement contracts until May 27.
Wang said he had reached out to the air force and received confirmation that they were aware and had put the bid on hold until the company was further vetted.
Wang urged the military to pay due attention and ensure that procurement contracts are up to standards and that loopholes are not exploited.
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