Taiwan defense contract under scrutiny by legislators

TAIPEI (TVBS News) — Taiwan's parliament scrutinized the Ministry of National Defense's NT$590 million (around US$18.9 million) explosives procurement contract Monday (Dec. 15), amid allegations of unfair bidder selection. The Legislative Yuan (立法院) raised concerns about the Fu Mai Corporation (福麥公司) contract, alleging that officials had unfairly selected small companies with little experience in weapons procurement. The controversy erupts as President Lai Ching-te's (賴清德) NT$1.25 trillion (around US$40 billion) special defense budget remains blocked in the legislature.

Minister of National Defense Wellington Koo (顧立雄) addressed the media, clarifying that bidding criteria for weapons procurement contracts have remained unchanged for 20 years. Koo emphasized that the ministry's focus remains on fulfilling delivery commitments and contract compliance. The minister reassured the public that the Ministry of National Defense (國防部) stands up to scrutiny and does not want to see harm to Taiwan's national security.

Koo explained that bidders failing to secure export permits and necessary documentation face contract termination, forfeiture of performance bonds, and suspension. The ministry would not face payments if contractors breach their contracts. Koo reiterated that bidding qualifications, which require a legal establishment, tax certification, and compliance with international trade standards, have not changed, dismissing allegations of tailored requirements that favor certain companies.

Tensions rose as Koo visited the press room of the opposition Kuomintang (KMT, 國民黨), Taiwan's main opposition party, where he reacted strongly to allegations of procurement. KMT Legislator Wang Hung-wei (王鴻薇) accused Hong Zhang Tea Company (鴻璋茶業公司) of securing a cybersecurity equipment maintenance contract despite having only NT$100,000 (around US$3,200) in capital. Wang continued to expose similar procurement cases involving underqualified bidders.

Wang alleged that Hong Zhang Tea Company participated in three vendor qualification votes yet remained eligible to bid without blacklisting. A TVBS journalist visiting the company's alleged address found that it belongs to an auto parts manufacturer. A company representative spoke out against KMT Legislator Ling Tao (凌濤), who has publicly criticized companies like theirs for winning defense contracts, claiming his statements have caused the firm trouble.

The opposition party's scrutiny of bidding companies, from explosives procurement to sensitive equipment maintenance, has embroiled local businesses in political disputes. The controversy highlights the charged atmosphere surrounding national security discussions within Taiwan's parliament. President Lai Ching-te's NT$1.25 trillion (around US$40 billion) special defense budget remains blocked in the legislature amid the ongoing procurement and other disputes. ◼ (At time of reporting, US$1 equals approximately NT$31.2)