r he was placed under custody for possible corruption. The Hsinchu District Court approved the request from prosecutors, who questioned Wu for over than 10 hours starting on Wednesday.
Wu heads Taiwan's National Space Organization (NSO) in charge of the development of space/satellite technology and projects.
Prosecutors raided his residence and office at the Hsinchu Science Park in northern Taiwan to gather evidence concerning the scam involving procurement of high-tech satellite equipment.
In addition to Wu, Tsai Shen-hau and Lin Hsin-chia were also listed as defendants in the case. But both were released after having converted to the status of witnesses to provide evidence against Wu.
Chen Hsia-lin, a broker between Wu and Vancouver-based contractor MacDonald Dettwiler Associates Ltd. (MDA) of Canada in the deal, was released for lack of adequate evidence of involvement.
Lin Hui-yin, one of the prosecutors in the joint probe carried out by the Tainan and Hsinchu prosecutors offices, said Wu is under investigation for corruption involving the development of the Argo satellite, which the authorities here plan to launch in 2008.
Wu was alleged to have "passed favors" to businesspeople brokering the procurement deal. "Overbudgeting" was among the irregularities.
Wu's office awarded MDA the NT$900 million contract and made full payment to build the satellite and accompanying rocket launch in 2005.
However, it was forced to cancel the deal late last year because the Canadian firm failed to obtain an export license from authorities.
MDA only returned the money after Taiwanese lawmakers began looking into the deal, after receiving tips from sources close to the deal.
One lawmaker charged that Wu had paid a much higher price for the procurement, citing financial figures available on the Internet.
Officials at the government's National Applied Research Laboratories (NARL) which supervises the space program, said Wu was already reassigned to a non-administrative position.
Wu An-ming, deputy chief at the National Space Organization, was named acting chief to ensure the space project's smooth and continuous operations.
Lance Wu, a scientist trained in the U.S., used to work as researcher and project leader at the state-funded Industrial Technology Research Institute, currently headed by Lin Sin-yi, a former vice premier.
Wu was criticized in the past for his alleged forming of private enterprises to get government contracts.
He normally enters the office only in the afternoon despite a high salary of around NT$250,000 per month, said a lawmaker.
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