Firm set up to handle arms purchases: MOEA

According to the MOEA data, Taiwan Goal was registered as an ordinary company with capital of NT$1 billion (US$31.15 million) and paid-in capital totaling NT$80 million.

Wu Nai-jen, a DPP heavyweight and head of China Steel Machinery Corp. — a subsidiary of the formerly state-owned China Steel Corp. (CSC) — was registered as chairman and a member of the board directors of Taiwan Goal, according to the MOEA data.

Other registered Taiwan Goal board directors include Lin Wen-yuan, CSC chairman, and Tung Ching-hsiung, president of Chunghwa System Integration, which is a subsidiary of Chunghwa Telecom. Kuo Shui-yi, deputy director of Chunghwa Telecom’s Investment Department, has been registered as a supervisor of Taiwan Goal, according to the MOEA.

Defense Minister Lee Tien-yu was quoted as having confirmed yesterday the administration of outgoing President Chen Shui-bian recently created a company to handle arms purchases, beyond the control of the defense ministry.

Lee was quoted as having told opposition Kuomintang (KMT) lawmakers that the ministry will contribute 45 percent of the capital to form the company, which is commissioned to integrate resources to boost the country’s national defense industry and facilitate arms procurement.

According to KMT lawmakers, Lee made the remarks during a closed-door meeting hosted by the party’s legislative caucus earlier in the day.

Lee declined to make any comments after the meeting, but he promised to hold a news conference today to brief the media on the matter.

Wu Nai-jen was selected to be president of Taiwan Goal

According to Lee and Armament Bureau Chief Wu Wei-rong of the MND yesterday unveiled plans for a privatized defense company to facilitate buying and selling of weapons and military equipment in May this year.

Taiwan Goal, will be responsible for integrating local and international military equipment manufacturers and various military services, Wu Wei-rong said.

The announcement was met with criticism by Taiwan media, whose questions about how the affairs of a private company would be controlled and supervised went largely unanswered by the minister and bureau chief at the press conference yesterday.

Lee pointed out that the military’s 45 percent investment of NTD$90 million in Taiwan Goal’s initial capital came from the MND, with other contributions coming from other government agencies and state-owned corporation. An official spokesperson for the MND also noted Taiwan’s Ministry of Economic Affairs’s and Chunghwa Telecom’s 15 percent stakes, as well as China Steel Corp.’s 25 percent investment.

Lee explained Taiwan Goal was established as a platform to integrate international military equipment suppliers — particularly those from the United States — and competent local companies to work on military system maintenance and components manufacture.

According to opposition Kuomintang Legislator Lin Yu-fang, Taiwan Goal has a seven-member board of directors, with three seats going to the Ministry of National Defense.

Taiwan Goal’s office is located in Taipei 101, according to the MOEA data, contradicting a report in the local daily China Times, which said that Taiwan Goal is headquartered at the Armament Bureau under the Ministry of National Defense.

Taiwan Goal is registered to deal in a wide variety of businesses, including: the import and export of arms and weaponry systems; sales of garments and accessories, industrial explosives, precision instruments, and batteries of all types; and product design, according to the MOEA.

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