12:00 AM, October 12, 2011
Taiwan said Oct. 12 that it was seeking nearly $100 million in compensation from France in the latest twist to a long-running kickback scandal over the 1991 sale of warships to the island. Taiwan received $875 million from French defense giant Thales in July, after the company lost an appeal over wrongful payments of commissions on the Taiwanese frigate order 20 years ago. But the navy has found new irregularities pointing to illegal kickbacks in a contract to supply parts for the six Lafayette-class frigates, Taiwanese Defence Minister Kao Hua-chu said. "The navy is launching an arbitration process, and we're confident that we'll win," Kao said in reply to a parliamentary question from ruling party lawmaker Lin Yu-fang. According to Lin, under the French arbitration process, the navy is seeking 3 billion Taiwanese dollars ($98.36 million) in compensation from French shipbuilding company DCNS.