TAIPEI (Taiwan News) — Taiwan’s Ministry of National Defense received US$159.7 million (NT$5.2 billion) in compensation from RTX (formerly Raytheon Technologies Corporation) after the company was accused of defrauding the US government.
The US Department of Justice investigated the Virginia-based defense contractor for conducting a fraud scheme that listed inflated prices on certain government contracts. This was said to break the Foreign Corrupt Practices Act and other government regulations.
To avoid prosecution, the company admitted to defrauding US Department of Defense programs related to the supply of defense materials and services, including the Patriot missile and radar systems. It agreed to pay more than US$950 million in a settlement.
RTX's artificially raised prices also increased Taiwan’s arms procurement costs, the MND said. It added that since Taiwan operates the Patriot Missile system, it was also a victim in this case.
The ministry has requested US authorities, including the Defense Contract Management Agency, to conduct audits on other projects to safeguard the nation’s arms procurement interests.
RTX’s payment has already been deposited into the national treasury, the MND said.
Taiwan and the US recently signed three procurement contracts with the American Institute in Taiwan for aviation and ship parts worth more than US$326 million. The US also approved a potential sale of three National Advanced Surface-to-Air Missile Systems (NASAM) and 123 Advanced Medium-Range Air-to-Air Missiles-Extended Range to Taiwan last month.