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Tech manager indicted for fraud over generators sold to the Navy

ROC Central News Agency

03/27/2023 11:04 PM

Taipei, March 27 (CNA) A tech company manager was indicted Monday on fraud and document forgery charges for having supplied generators made in China rather than Europe to the Navy in violation of the terms of the Navy tender, the New Taipei District Prosecutors Office said.

Prosecutors alleged that the manager, identified by his surname Lai (賴), racked up NT$51.94 million (US$1.69 million) in illicit profits in the case that dated back to August 2019, when the Navy issued four tenders to procure 60 KW generators.

Lai's company beat out four other bidders to win three of the four tenders issued by the Naval Fleet Command because of its low bids.

The tenders stipulated that the generators provided by the winning bidder had to be European, American or Japanese equipment, meaning they could not be manufactured in or imported from China or Chinese products transshipped via a third country.

Although the procurement authorities were suspicious of the low bids made by Lai's company, which were 80 percent lower than the tender's reference prices, their misgivings were eased after Lai provided documents showing the generators were going to be imported from Europe.

After an investigation based on a tip-off, prosecutors found that Lai, another manager in his company surnamed Lin (林), and the boss of another company surnamed Ho (何) knew that the generators and their components were produced and imported from China, with some transshipped from Singapore.

According to prosecutors, the three used forged documents in Chinese and English to deceive naval personnel that the generators were made in Europe, helping them win contracts worth NT$92 million and enabling the generators to pass inspection.

The trio denied any unlawful wrongdoing and argued they supplied the Navy with generators from a Chinese company because there was not enough time to get delivery from the Spanish supplier they claimed they originally ordered the generators from.

Prosecutors did not buy their story, however, and decided to indict them on charges of fraud and document forgery and for violating the Government Procurement Act.

(By Flor Wang and Kao Hua-chien)

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