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Ching Fu deal should be nixed: officials

WEAK FOUNDATION:A Ching Fu subsidiary might see its contract with a marine museum dissolved if it continues to miss deadlines in building an ecology aquarium

Taipei Times
Date: Nov 19, 2017
By: Su Yung-yao and Jake Chung  /  Staff reporter, with staff writer

Officials involved in an indigenous submarine project largely agree that the government

The National Museum of Marine Science and Technology in Keelung is pictured yesterday.  Photo: Lin Hsin-han, Taipei Times

should dissolve its contract with Ching Fu Shipbuilding Co (慶富造船) to cut its losses and move ahead with building submarines, sources familiar with the project said.

Ching Fu, which was contracted to build six minesweepers, was last month revealed to have engaged in fraudulent activity involving nine banks that had agreed to grant the shipbuilder a NT$20.5 billion (US$681 million) syndicated loan led by state-run First Commercial Bank (第一銀行).

Ching Fu defaulted on the loan, causing the banks to lose up to NT$20.1 billion.

The firm must pay the consortium NT$1.7 billion in surety bonds by the end of this month as a guarantee of repayment, an official said on condition of anonymity.  [FULL  STORY]

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