TAIPEI (TVBS News) — The U.S. defense contractor RTX (雷神), previously known as Raytheon Technologies, has paid the Taiwanese government a penalty of NT$52 billion. This payment follows allegations of overcharging in military sales, as confirmed by Taiwan's Ministry of National Defense (MND, 國防部) on Wednesday (Nov. 20).
MND spokesman Major General Sun Li-fang (孫立方) stated, "RTX engaged in fraudulent commercial practices, leading to increased military sales costs for Taiwan." He added that the payment was converted and deposited into the national treasury the day before the announcement.
The MND accused RTX of fraudulent practices, which led to inflated costs for Taiwan, affecting systems like the Patriot missile and radar systems. The U.S. Department of Justice charged RTX with significant government fraud and reached a deferred prosecution agreement with the company.
Emphasizing the importance of adhering to regulations in military sales, the MND reiterated Taiwan's commitment to democratic values. The ministry has also urged the U.S. Defense Security Cooperation Agency to investigate other cases to safeguard Taiwan's military sales interests.
The overpricing scandal includes a long-range warning radar valued at NT$40.8 billion. Maintenance costs were billed at NT$11 billion in 2012 and 2018 but rose to NT$20 billion in 2022. Also, a PAC-3 missile project, valued at NT$18.2 billion in July 2020, was notably overpriced.