TAIPEI (Taiwan News) — US defense contractor RTX (formerly Raytheon) has reportedly agreed to return up to US$250 million (NT$8.04 billion) in unlawful gains to Taiwan after an investigation found the firm had overcharged the country in two weapons deals.

Bloomberg revealed in June that during an audit of the US Department of Defense's foreign military sales, the US Government Accountability Office discovered that RTX had engaged in price gouging of its international clients. In April, the company set aside US$300 million to pay penalties related to overpricing, and in July, it agreed to pay US$1.24 billion in restitution for overcharging, bribery, and export control violations, reported the Wall Street Journal.

On Oct. 1, Yi Media reported that Taiwan was one of the international buyers affected by the overpricing. The two sales in question amounted to approximately US$250 million and included a Patriot missile procurement in 2013 and the purchase of radar systems in 2017, according to the report.

On Friday (Oct. 4), Defense Minister Wellington Koo (顧立雄) confirmed that the US Department of Justice had investigated RTX for inflating arms sale prices to Taiwan, with the primary case occurring in 2013, per CNA. Koo emphasized that Taiwan would recover all improper gains but declined to specify the exact amount.

During a Legislative Yuan session on Monday (Oct. 7), Koo noted that the US proactively investigated the arms deals and informed Taiwan, stressing that both countries are victims in this case. He added that if the US had treated Taiwan as a "sucker" or "fool," it would not have initiated an investigation or notified Taiwan, according to CNA.