Taiwan frigate scandal

The Taiwan frigate scandal was a huge political scandal, both in Taiwan and France.

History

In 1998 a former French foreign minister claimed that US$500 million commission was paid by Thomson-CSF (now Thales), the prime contractor, on the sale of La Fayette-class frigates to Taiwan.[1] Eight people involved in the contract died in unusual and possibly suspicious circumstances.[2] Arms dealer Andrew Wang fled Taiwan to the UK after the body of presumptive whistleblower Captain Yin Ching-feng was found floating in the sea.[3]

In 2001 Swiss authorities froze accounts held by Andrew Wang, his wife, and his son Bruno Wang in connection to the Taiwan frigate scandal.[4]

Six ROC naval officers were indicted on corruption charges relating to the affair.

In 2003, the Taiwanese Navy sued Thomson-CSF (Thales) to recover alleged $590 million in kickbacks, paid to French and Taiwanese officials to grease the 1991 La Fayette deal.[5] In 2006 Andrew Wang, his wife, and their four children were indicted by Taiwanese prosecutors on charges of bribery, money laundering and related illegal actions.[3]

The kickback money was deposited in Swiss banks, and under the corruption investigation, Swiss authorities froze approx. $730 million in over 60 accounts. In June 2007 the Swiss authority returned $34 million from frozen accounts to Taiwan, with additional funds pending.[6] Andrew Wang died in the UK in 2015 and collection efforts continued against his family.[3] In 2017 Taiwan’s supreme court ordered the return of US$312.5 million in illegal proceeds held by the Wang family.[3]

In February 2021, the Federal Department of Justice and Police said that Switzerland will restitute nearly US$266 million to Taiwan.[7] In July 2021 a Taiwanese high court ordered the return of US$520 million of illegal proceeds from the scandal which was in addition to the US$312.5 million ordered returned in 2017.[3]

References
  1. Trueheart, Charles (13 March 1998). "France Embroiled in Scandal du Jour". Washington Post. Retrieved 8 July 2020.
  2. Schofield, Hugh (1 December 2003). "Book delves into frigate scandal". BBC News. Retrieved 30 October 2015.
  3. Pan, Jason. "High Court orders return of illegal proceeds". www.taipeitimes.com. Taipei Times. Retrieved 15 July 2021.
  4. Kirby, Emma-Jane. "Swiss target Taiwan arms dealer". news.bbc.co.uk. BBC. Retrieved 13 October 2021.
  5. "Navy sues French frigate contractor". Taipei Times. 7 November 2003. Retrieved 30 October 2015.
  6. "Lafayette scandal funds returned to Taiwan". Taipei Times. 15 June 2007. Retrieved 30 October 2015.
  7. "Progress made on return of illegal kickbacks in Lafayette Frigate case". Taiwan News. Central News Agency. 6 February 2021. Retrieved 26 April 2021.
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