France faces fine over Lafayette scandal
France may have to reimburse Taiwan US$600 million for breaches in a 1991 contract to build six frigates, Le Figaro reported yesterday, citing a public prosecutor’s office report to Justice Minister Dominique Perben.
Taiwan filed a lawsuit in November claiming illicit commission payments breached the terms of the frigate construction contract awarded to Thomson-CSF, now Thales SA, the newspaper reported.
The public prosecutor said in a January 15 report sent to Perben that France may be liable to repay the US$600 million in illicit commissions because it acted as guarantor for the frigate contract, Le Figaro said.
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