Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

2015-09-02 20:45 MEDIA WATCH

Read more

THE DEBATE

Erdogan's Toughest Battle? Turkish president reverses course on key issues (part 2)

Read more

THE DEBATE

Erdogan's Toughest Battle? Turkish president reverses course on key issues (part 1)

Read more

THE INTERVIEW

EU policy consigns Greece ‘to deeper depression’, says Stiglitz

Read more

FOCUS

India - Pakistan: A new generation takes up arms in Kashmir

Read more

MIDDLE EAST MATTERS

The road to exile: A Syrian family’s journey across Europe

Read more

ENCORE!

Film Show: Wes Craven, ‘The Brand New Testament’, ‘This Ain't California’

Read more

FACE-OFF

How Europe’s migrant crisis became a political battle

Read more

BUSINESS DAILY

France cracks down on internship abuses with system overhaul

Read more

France

France to pay Taiwan millions over wrongful frigate commissions

Text by News Wires

Latest update : 2011-06-09

France said Thursday that it would pay Taiwan €460 million after the Thales defence firm lost an appeal over wrongfully paying commissions to secure a frigate contract. The French state had guaranteed the 1991 Thales contract.

AFP - The French government said on Thursday it would have to pay Taiwan 460 million euros after defence giant Thales lost an appeal over its wrongful payment of commissions on a warship order.
              
Prime Minister Francois Fillon's office announced that the state would have to cover 72.5 percent of the massive bill the group now faces after an appeal court threw out its challenge to an arbitration panel's ruling.
              
France had guaranteed the "Bravo" contract when it was signed in 1991, and an emergency amendment to the government operating budget will now be sent to parliament in order to settle the matter, an official told AFP.
              
In April last year an arbitration panel employed by Thales and the Taiwanese navy to settle their differences found that the French firm had wrongly paid commissions to intermediaries to secure the contract.
              
Thales appealed the private panel's decision in a civil court, but on Thursday its complaint was thrown out, leaving it facing a bill of at least $591 million (407 million euros) plus interest and legal fees.
              
The French defence and electronics firm signed the original contract to supply Taiwan with six Horizon-class frigates in 1991. The deal specifically excluded the payment of sweeteners to go-betweens.
              
France's Defence Minister Gerard Longuet said Thales would not appeal the latest ruling, which was based not on a re-examination of the case itself but on the conduct of the arbitration.
              
"At Thales's demand there will be no higher appeal because frankly this affair is not good publicity," he told reporters.

 

Date created : 2011-06-09

COMMENT(S)