Taiwan's New Submarine Project Faces Questions - Asia ...

A US national defense official who asked to remain anonymous in October last year suggested that Gavron Ltd, the Gibraltar-based consultancy that was put in ... AsiaSentinelSubscribeSigninSharethispostTaiwan’sNewSubmarineProjectFacesQuestionswww.asiasentinel.comCopylinkTwitterFacebookEmailTaiwan’sNewSubmarineProjectFacesQuestionsAsiaSentinelApr4,2019CommentShareTheTaiwanesedefenseministryhasdeclaredithascompletedthedesignphaseofTaiwan'sfirstindigenoussubmarineproject,withblueprintsandprototypetobecompletedby2020and2024,respectively.Butthatannouncementcomesamidconcernsthat,asinthepast,Taiwan’smilitaryprocurementshavebeensaddledwithfraud.The“contractdesignphase”ofthesubmarineprogramtowhichtheTaiwanesegovernmenthassofarcommittedNT$49billion(US$1.6billion)oversevenyearsreferstothesettlingforgeneralrequirementsandhoped-forcapabilities,includingarmaments,hullstrengthandelectronicscapabilities.TheUSStateDepartmentinAprillastyeargavethego-aheadforUSdefensecompaniestoselltechnologyforthenewsubmarineproject,whichisbeingcarriedoutbyChinaShipbuildingCorporation(CSBC),Taiwan’smainshipbuildingcompany.TheTaiwannavyisstillreelingfromrevelationsthatChingFuShipbuilding,alocalcontractorinaminesweeperproject,lastyearcommittedloanfraudinvolvingatleast14Taiwanesebanksjustintimeforsuspicionstoblowupoverthesubmarineproject.AUSnationaldefenseofficialwhoaskedtoremainanonymousinOctoberlastyearsuggestedthatGavronLtd,theGibraltar-basedconsultancythatwasputinchargeofthecontractdesign,isnotcapableofcarryingouttheNT$600million(US$19million)project.TheofficialwasquotedintheTaipeiTimesassayinghewasworriedthatGavronmightacquireclassifiedinformationonsystemsprovidedbytheUStoChinaShipbuildingviathesubmarineprogram.TaiwaneseinvestigativejournalistTsaiHan-shunthentookacloserlookatGavron,findingthatitis,infact,ashellcompanythathadoriginallybeenregisteredintheUKasabeverageandtobaccoretailcompany,wentoutofbusinessin2016,andwasthenrevivedasaGibraltar-registeredfirm.TsaialsofoundoutthatfoursimilaroverseasentitieswereregisteredoverthepastyearbyTaiwaneseowners,includingretiredmilitaryorpeoplewithconnectionstowindefenseprocurementtenders.“Throughmyinvestigation,IbelievethatfamilymembersofAndrewWangareinthebackgroundofsomeofthesecompanies,”TsaitoldtheTaipeiTimes.Wang,anotoriousarmsbrokerfortheFrenchdefensegiantThomson-CSF,wasthemainprotagonistinTaiwan’smassiveLafayettefrigatescandalinthe1990s.FrenchofficialsweresaidtohavepaidasmuchasUS$500millioninbribestoofficialsbothinTaiwanandChinatofacilitatetheTaiwannavy’sprocurementoftheFrench-madefrigates.Wangissaidtohavediedin2015atage86althoughsomebelievehefakedhisdeathtoavoidprosecution.TaiwaneseinvestigatorsarestillattemptingtochasedownWang’sfamilyaftertheyfoundthatthepriceforthesixfrigateswasinflatedtoUS$2.6billion.ThefamilyapparentlytransferredthegainstobanksinSwitzerland,Austria,Liechtenstein,Luxembourg,theIsleofManandJerseyaswellastobankaccountsinnineothercountries.AfterthebodyofYinChing-feng,aTaiwanesenavalcaptainandtheheadofthenavyprocurementoffice,wasfoundintheoceanoffTaiwanin1993andwhoreportedlywasabouttoblowthewhistle,Wangdisappearedandwasneverseenagain.Hewasconvictedinabsentiaofthemurder.TheotherprotagonistswhohavediedsinceareaTaiwanesebankofficialwhoactedforthenavaldockyards;aFrenchintelligenceagent(whofelltohisdeathfromhisParisapartment);aformerTaiwan-basedThomsonemployee,andYin'snephew.KuoHsi,whowasalsolinkedtotheLafayettescandal,islistedaschairmanofashellcompanynowinvolvedinthesubmarineproject,accordingtolocalmedia.Itdoesn’tmakeGavronappearanymorelegitimatebythefactthatdespitethehugesensitivityofanymajorarmsprogrambytheTaiwanmilitary,anAsiaSentinelqueryconductedinlate2018foundthatGavronhassoughttorecruititsteamofKaohsiung,Taiwan-basedexpertsin“submarineprojectintegration”openlythroughtheonlinerecruitmentwebsitewww.eurojobs.com.Scandalornoscandal,legislatorshavebeenshownaround700foreignexportpermitsrelatedtothecontractdesignphaseandweretoldthatseveralforeigncontractorsthathadinitiallyagreedtocontributewalkedawayamidpressurefromChina.TheprojectismovingforwardintheteethofvolubleChineseobjections,sinceacapablesubmarinefleetwouldbeamongthelastweaponplatformsChinawantstoseeunderTaiwancommand,giventhatitcouldgreatlycomplicateanyChineseattemptstoinvadeorblockadetheisland.“Developingablueprintofthesubmarine,thenextstep,willbetechnicallychallenging,butthis,too,shouldbefeasible,”saidTimothyR.Heath,aseniorinternationaldefenseanalystwiththeCalifornia-basedRANDcorporationinaninterviewwithAsiaSentinel.“Thegreaterdifficultywillbeinthesecuringofneededpartsthatcan’tbemanufacturedinTaiwan,andintheactualconstructionofthesubmarine.Giventheunpredictabilityofsomeforeignsuppliers,severalofwhomhavealreadywithdrawntheiroffers,andTaiwan’sinexperienceinbuildinganadvanceddieselsubmarine,thesewillposethemostseriouschallengesforthesubmarineprojectincomingyears.”Taiwancurrentlyhasfoursubmarines,buttwoofthem,so-calledTench-classAmericanboats(picturedabove)datetoWWIIandaretheoldestsubmarinesstillinserviceanywhereintheworld.Theyareusedonlyfortraining.TheothertwoareDutch-builtSwordfishclassdieselsubsacquiredintheearly1980sandupgradedin2008tofireUGM-84Harpoonanti-shiporgroundattackmissiles,givingTaiwanlimitedcapability.It’snosecretthatTaiwandoesn’thavethetechnicalexpertisetobuildthemaindieselengine,torpedoes,andmissilesystemsonitsown.Ironically,itnowseemsthatthemostseriouschallengetogettingtheprojectdonewillnotbeposedbyChinabutlocalfraudsters.SaidJohnPike,directoroftheGlobalsecurity.orgthinktank:“It’sdreadful.IhadwonderedhowTaiwanhadfoundacompanythatbothknewhowtobuildsubmarinesandwasnotafraidofBeijing--itsoundedtoogoodtobetrue.”JensKastner([email protected])isaTaiwan-basedjournalistandlongtimecontributortoAsiaSentinelCommentCommentShareShareCreateyourprofileYournameYourbioSubscribetothenewsletter0subscriptionswillbedisplayedonyourprofile(edit)SkipfornowSave&PostCommentOnlypaidsubscriberscancommentonthispostSubscribeAlreadyapaidsubscriber?SigninCheckyouremailForyoursecurity,weneedtore-authenticateyou.Clickthelinkwesentto,orclickheretosignin.TopNewCommunityNopostsReadyformore?Subscribe