Minesweepers Fiasco Will Become International Scandal If Not Handled Well

 Minesweepers Fiasco Will Become International Scandal If Not Handled Well

United Daily News Editorial (Taipei, Taiwan)

November 22, 2017
 Translation of an Excerpt

The minesweepers storm keeps snowballing. Lockheed Martin, the firm that was contracted for the ships’ weapons system design and installation, has ordered the downstream subcontractors to stop all work. Thus, Ching Fu Shipbuilding Co. cannot continue to implement the shipbuilding project; the Defense Ministry probably can only terminate the project with it. In addition, Ching Fu could not deliver ships on schedule in its cooperative project with Tuvalu, even using the ships as collateral for a secret loan deal in the amount of NT$900 million, which Ching Fu embezzled. If the Ching Fu case is delayed and not handled well, it inevitably will escalate from a domestic fiasco into an international scandal.

During the Ma administration era, Ching Fu secured a syndicated loan from state-owned banks; in the Tsai administration era, it has won advance contract payment from the military, with funds diverted from other procurement budgets. The problems in both eras are in fact the same because the goal of "locally-manufactured navy ships" is too "grandiose," leading to untidy and chaotic handling in related administration, credit extension, credit verification and supervisory procedures, even to the point of self-degradation. In total disregard of the contract, the Navy disbursed in advance NT$2.4 billion to Ching Fu as contract payment; this is a case in point. Besides, many political figures have fraternized with Ching Fu in private, even offering assistance under the table exceeding the bounds of law. 

As the minesweepers case is being embroiled in a snowballing controversy, the public has not seen the high echelons of government resolutely handle the case or the fair investigation by the criminal justice system. During this period, President Tsai has not changed her style of “disappearing,” an approach she has adopted whenever encountering thorny issues. This case involves the government policy of locally manufacturing navy ships and heavy losses of state-owned banks; how it should end is not something that the consortium of banks or the military can decide alone. Up to now, Tsai Ing-wen has not made policy decisions, including on the involvement of high echelons in the Presidential Palace lobbying for advance payments, and the President, however has left the answers to the speculation of the public. What is even more dreadful is that the Kaohsiung District Prosecutors Office in charge of investigating the case, besides repeatedly showing its preferences in the investigation, has even deliberately released inaccurate information to certain media outlets in order to pander to the powers that be. Under the situation of passing the buck on the one hand, and pandering to the powers that be on the other, the minesweepers case investigation will, of course, be dragged down by Ching Fu’s loan fraud, eventually sinking with it.

If the government cannot take a fair stance and adopt a resolute policy decision, this case will not only shatter the daydream of locally manufacturing navy ships, it will also expose a big crack in Taiwan's combat strength, and even turn Taiwan into a laughing stock in an international scandal.

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