Don't miss

Replay


LATEST SHOWS

IN THE PAPERS

'60% of British citizens want voting reform'

Read more

THE INTERVIEW

Swedish FM: ‘Diplomacy today is about courage and patience’

Read more

IN THE PAPERS

Women journalists to male politicians: Hands off!

Read more

BUSINESS DAILY

France's billion-euro private beach industry

Read more

EYE ON AFRICA

Top Burundian judge says he has fled country after government pressure

Read more

EYE ON AFRICA

UN denies claims it tried to cover up sex abuse in Central African Republic

Read more

DEBATE

François of Arabia: Hollande's Budding Friendship with the Gulf (part 2)

Read more

DEBATE

François of Arabia: Hollande's Budding Friendship with the Gulf (part 1)

Read more

MEDIAWATCH

'François of Arabia' criticised in French press

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)