France to Pay Over Taiwan Frigate Deal

12 June 2011 (Last Updated June 12th, 2011 18:30)

The French Government will have to pay €460m ($591m) plus interest and legal fees to the Taiwanese Navy over wrongful payment of commissions in the six Horizon Class frigates deal signed in 1991. An arbitration panel set up by Thales and the Taiwanese Navy found that the firm had ill

The French Government will have to pay €460m ($591m) plus interest and legal fees to the Taiwanese Navy over wrongful payment of commissions in the six Horizon Class frigates deal signed in 1991.

An arbitration panel set up by Thales and the Taiwanese Navy found that the firm had illegally paid commissions to intermediaries to secure the contract.

French Prime Minister Francois Fillon's office stated that 72.5% of the bill will be covered and an emergency amendment to the current government operating budget will be sent to the parliament to settle the matter.

France's Defence Minister Gerard Longuet said the firm would not demand for a higher appeal over the latest ruling on the case, Agence France Presse reported.