Legislators have expressed concerns and demanded a resolution to the latest case of investigations into price inflation practices in arms sales.
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RTX, previously known as Raytheon, a major U.S. defense contractor, is under scrutiny for allegedly overcharging Taiwan in at least two military procurement deals. The Legislature’s National Defense Committee held a closed-door meeting on Tuesday with Defense Minister Wellington Koo (顧立雄) in attendance, to address the issue.
Minister Koo stated clearly that the U.S. should bear full responsibility for any inflated prices and that Taiwan would demand a complete refund of all overcharged amounts. The controversy involves two specific purchases: a 2013 Patriot missile deal and a 2017 radar system acquisition.
The issue came to light following a Bloomberg report in June, which revealed that RTX had agreed to pay US$1.24 billion in a settlement with the U.S. government after criminal investigations into price inflation practices. The financial impact on Taiwan is estimated to be in the hundreds of millions of U.S. dollars.
Legislators Ma Wen-chun (馬文君), Wang Ting-yu (王定宇), and Hsu Chiao-hsin (徐巧芯) have expressed concerns about the broader implications of the issue, asking if there any similar cases and what actions have been taken. Minister Koo acknowledged procedural errors in this case but noted that corrective measures had been taken. Legislator Chen Kuan-ting (陳冠廷) says stricter oversight is needed in future military procurements to safeguard taxpayer money and national security interests.