DRAWING LOTS:The Ministry of National Defense failed to ensure the shipbuilder had the manufacturing and financial capability to deliver on its tender, a report said
Taipei Times
Date: Nov 03, 2017
By: Chen Wei-han / Staff reporter
State-run banks could lose up to NT$20.1 billion (US$665.97 million) for extending a
Vice Premier Shih Jun-ji announces the findings of an Executive Yuan investigative report on the extension of a loan to troubled Ching Fu Shipbuilding Co at the Executive Yuan in Taipei yesterday. Photo: CNA
loan to troubled Ching Fu Shipbuilding Co (慶富造船), the Cabinet said yesterday, adding that First Commercial Bank chairman Tsai Ching-nain (蔡慶年), who supervised the syndicated loan, would be removed.
However, there is no conclusive evidence of any political intervention in the loan decision, the Cabinet said.
Ching Fu, which was awarded a NT$35.8 billion contract to build six minesweepers for the navy as part of a domestic warship program, defaulted on a NT$20.5 billion syndicated loan, forcing nine banks to lose a combined NT$20.1 billion, an Executive Yuan report said yesterday.
The investigation revealed major dereliction of duty by the Ministry of National Defense and First Bank in awarding the contract and loan to the financially unstable company, Vice Premier Shih Jun-ji (施俊吉) said. [FULL STORY]
