TAIPEI (Taiwan News) — KMT Legislator Hsu Chiao-hsin (徐巧芯) on Wednesday urged the Ministry of National Defense to address what she described as structural procurement problems, citing a recent Control Yuan report on a military dash cam procurement case.
The Control Yuan on Thursday released a report confirming that dash cameras purchased by the defense ministry contained Chinese-made components, per Newtalk. The report said the devices passed the required visual inspections under the procurement contract.
According to the report, older procurement rules did not require the disassembly of equipment for further inspection. It added that although the per-unit procurement price was NT$2,000 (US$63.70) higher than similar products listed on China’s Taobao platform, the price was set after a market survey conducted in line with procurement procedures.
Responding to the report, Hsu said it validated concerns she raised when the issue first emerged, per UDN. She questioned why the military purchased dash cams that failed to meet its operational requirements and cast doubt on the effectiveness of the ministry’s market research.
Hsu also questioned why the military did not dismantle the equipment to verify the origin of its components. She said the contractor, Sundoz, lacked manufacturing capacity and instead procured Chinese-made dash cams through I Kun Industrial Metal, a company owned by relatives of Sundoz’s owner Hsu Yu-cheng (許育誠).
Hsu further noted that Sundoz had previously won defense ministry contracts despite a record of 20 contract terminations or suspensions. She warned that without accountability for procurement failures, public support for increased defense spending would erode.
The dash cam case is not the first procurement controversy involving Sundoz-related firms. In April 2023, KMT Legislator Ma Wen-chun (馬文君) alleged that some military vehicles were using substandard parts sourced from unlicensed suppliers, per China Times.
Ma said that after the defense ministry stopped contracting with Sundoz over quality issues, it began working with I Ta-no Vehicular System, a firm she said was also linked to the family of Hsu Yu-cheng. She alleged that I Ta-no lacked authorization from the original manufacturer and accused the company of falsifying documents.
I Ta-no later filed a criminal defamation complaint against Ma, which prosecutors declined to pursue. Prosecutors found that a defense ministry investigation into the case had determined I Ta-no did not possess authorization from the German manufacturer or its authorized agent in Taiwan, per ETtoday.
The ministry also canceled a light tactical wheeled vehicle maintenance contract with I Ta-no in 2023, citing poor repair quality by subcontractors and the illegal use of Chinese-made parts, per LTN.
Commenting on the canceled contract, Champion Auto chair Li Ta-wei (李大偉) said it sparked controversy within the industry, noting that the winning bid was significantly lower than competing offers and the project’s budget, per LTN. He added that the military had made repeated concessions to I Ta-no, including delaying contract execution by a month and accepting assurances that the parts used were domestically produced.
