TAIPEI (Taiwan News) — An interior decoration firm was qualified to win a NT$590 million (US$18.87 million) defense contract because it is allowed to conduct international trade, the Ministry of National Defense said Thursday.

Questions had been raised about the qualifications of Tainan-based Home-Max Furniture Trading Ltd. to bid for the military project. While the company is unable to produce the required munitions in Taiwan, it holds an international trade license and can import them from overseas, the ministry said.

Defense Minister Wellington Koo (顧立雄) said the military would conduct a close inspection of the final product and review documentation from the source manufacturer, per CNA. There should be no doubts about the quality of the munitions or about the country of origin, the ministry said.

Research by the ministry found that no company had the ability to produce the required munitions in Taiwan. As a result, it allowed all companies involved in international trade to take part in the bidding, officials said.

Home-Max is not only involved in interior decoration, but also holds Ministry of Economic Affairs licenses for 16 business domains, including wholesale trade in chemical raw materials and international trade, according to the ministry.