Identifier
Created
Classification
Origin
07TAIPEI1248
2007-06-05 05:44:00
CONFIDENTIAL
American Institute Taiwan, Taipei
Cable title:
NSPO LANCE WU INVESTIGATED FOR CORRUPTION
how-toVZCZCXRO5229 PP RUEHCN RUEHGH RUEHHM RUEHPB RUEHVC DE RUEHIN #1248/01 1560544 ZNY CCCCC ZZH P 050544Z JUN 07 FM AIT TAIPEI TO RUEHC/SECSTATE WASHDC PRIORITY 5498 INFO RUEHOO/CHINA POSTS COLLECTIVE RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE RUEHUL/AMEMBASSY SEOUL 8686 RUEHKO/AMEMBASSY TOKYO 8822 RUEAIIA/CIA WASHDC RHEFDIA/DIA WASHINGTON DC RUEKJCS/SECDEF WASHINGTON DC RHHMUNA/USPACOM HONOLULU HI RHHJJAA/JICPAC HONOLULU HI
C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001248
SIPDIS
SIPDIS
STATE PASS ISN/CATR CHRIS KESSLER
E.O. 12958: DECL: 06/01/2012
TAGS: TSPA ETTC KSCA TW
SUBJECT: NSPO LANCE WU INVESTIGATED FOR CORRUPTION
REF: TAIPEI 0239
Classified By: ECONOMIC SECTION CHIEF DANIEL K. MOORE FOR REASONS 1.4 B
/D
C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001248
SIPDIS
SIPDIS
STATE PASS ISN/CATR CHRIS KESSLER
E.O. 12958: DECL: 06/01/2012
TAGS: TSPA ETTC KSCA TW
SUBJECT: NSPO LANCE WU INVESTIGATED FOR CORRUPTION
REF: TAIPEI 0239
Classified By: ECONOMIC SECTION CHIEF DANIEL K. MOORE FOR REASONS 1.4 B
/D
1. (C) SUMMARY. Local media reported 5/31 that National
Space Program Office NSPO Director Lance Wu is under
investigation for corruption. The allegations include
bid-rigging and conflict of interest for personal profit. As
noted in reftel, NSPO has already been the subject of
investigations this year and last. This latest scandal is
likely to see major changes at NSPO. END SUMMARY.
BID RIGGING IN FAVOR OF CANADIAN COMPANY
--------------
2. (C) Lance Wu's days as NSPO head appear numbered as the
Media reported on May 31 that prosecutors have initiated an
investigation into allegations of corruption by Wu. Foremost
is the accusation that he mismanaged the bidding process on
the ARGO satellite program. ARGO is named for the indigenous
remote sensing satellite that was planned as part of the
cluster of six satellites attached to the German Rapideye
system. ARGO has a 6.5 meter resolution and will be used for
land surveying. Wu limited bidding for the project and
awarded the contract to the Canadian company Mcdonald
Detwiler & Associates (MDA). Wu is alleged to have used his
friend, Chen Hsia-lin, to broker the deal. NSPO awarded MDA
a NT$900 million (30 million USD) contract but MDA was unable
to secure an export permit from the Canadian government. The
contract was subsequently given to the Italian firm STI.
CONFLICT OF INTEREST IN CONTRACTING COMPUTER SERVICES
-------------- --------------
3. (C) Wu allegedly also chose a small little-known vendor
to supply the bulk of NSPO's computer needs. The vendor is
owned by a former U.S. schoolmate of Wu's. News reports said
that the owner's wife, who is also the manager, was at one
point NSPO's planning control section chief. Wu was
questioned earlier in May about long absences from his job.
The parent organization of NSPO, National Applied Research
Laboratories (NARL) continues to look into the issue of time
on the job. Media reports that investigators suspect Wu may
have spent a good portion of his working hours looking after
his private investments.
MANAGEMENT WOES AT NSPO
--------------
4. (C) Wu became director of NSPO after working at the
Industrial Technology Research Institute (ITRI) and in a
subsidiary of the ACER computer company as general manager.
At ITRI he acquired a reputation as an idea man for his
numerous suggestions. When Wu joined NSPO in 2004, his
penchant for wheeling and dealing and disregard for
convention got him into trouble. According to media reports,
two of his projects, the ARGO and CYCLOPS satellite systems,
generated controversy due to their closed-bidding which was
handled by his business friend Chen Hsia-lin. When Wu was
called in to testify at the Legislative Yuan to explain
irregularities, his bosses at NARL and NSC refused to back
him up. Wu subsequently got rid of Hsiao Chiu-der, one of
his two deputies, by providing information to the authorities
that led to Hsiao's arrest for leaking secrets. Hsiao,
however, has an ally in Taiwan Solidarity Union (TSU)
legislator Liao Pen-yan, who is the prime mover behind the
latest corruption charges against Wu. After moving Hsiao out
of the chain of command, Wu appointed two technical directors
to help run NSPO. Technical Deputy Director Wu An-ming is
temporarily in charge of NSPO while the investigations
continue.
COMMENT.
--------------
5. (C) Wu's current contract expires in July. Even if not
found guilty, it does not seem likely he would be given an
extension. The NSPO parent organization NARL, or ultimately
the National Science Council (NSC),will need to focus on
overhauling the management of NSPO. Space projects currently
in the pipeline will also be carefully scrutinized for any
TAIPEI 00001248 002 OF 002
irregularities. Undoubtedly, this will lead to further
delays. NSPO's goal of building and launching its own
satellite by 2011 may well have to stretch on into the
future. END COMMENT.
YOUNG
SIPDIS
SIPDIS
STATE PASS ISN/CATR CHRIS KESSLER
E.O. 12958: DECL: 06/01/2012
TAGS: TSPA ETTC KSCA TW
SUBJECT: NSPO LANCE WU INVESTIGATED FOR CORRUPTION
REF: TAIPEI 0239
Classified By: ECONOMIC SECTION CHIEF DANIEL K. MOORE FOR REASONS 1.4 B
/D
1. (C) SUMMARY. Local media reported 5/31 that National
Space Program Office NSPO Director Lance Wu is under
investigation for corruption. The allegations include
bid-rigging and conflict of interest for personal profit. As
noted in reftel, NSPO has already been the subject of
investigations this year and last. This latest scandal is
likely to see major changes at NSPO. END SUMMARY.
BID RIGGING IN FAVOR OF CANADIAN COMPANY
--------------
2. (C) Lance Wu's days as NSPO head appear numbered as the
Media reported on May 31 that prosecutors have initiated an
investigation into allegations of corruption by Wu. Foremost
is the accusation that he mismanaged the bidding process on
the ARGO satellite program. ARGO is named for the indigenous
remote sensing satellite that was planned as part of the
cluster of six satellites attached to the German Rapideye
system. ARGO has a 6.5 meter resolution and will be used for
land surveying. Wu limited bidding for the project and
awarded the contract to the Canadian company Mcdonald
Detwiler & Associates (MDA). Wu is alleged to have used his
friend, Chen Hsia-lin, to broker the deal. NSPO awarded MDA
a NT$900 million (30 million USD) contract but MDA was unable
to secure an export permit from the Canadian government. The
contract was subsequently given to the Italian firm STI.
CONFLICT OF INTEREST IN CONTRACTING COMPUTER SERVICES
-------------- --------------
3. (C) Wu allegedly also chose a small little-known vendor
to supply the bulk of NSPO's computer needs. The vendor is
owned by a former U.S. schoolmate of Wu's. News reports said
that the owner's wife, who is also the manager, was at one
point NSPO's planning control section chief. Wu was
questioned earlier in May about long absences from his job.
The parent organization of NSPO, National Applied Research
Laboratories (NARL) continues to look into the issue of time
on the job. Media reports that investigators suspect Wu may
have spent a good portion of his working hours looking after
his private investments.
MANAGEMENT WOES AT NSPO
--------------
4. (C) Wu became director of NSPO after working at the
Industrial Technology Research Institute (ITRI) and in a
subsidiary of the ACER computer company as general manager.
At ITRI he acquired a reputation as an idea man for his
numerous suggestions. When Wu joined NSPO in 2004, his
penchant for wheeling and dealing and disregard for
convention got him into trouble. According to media reports,
two of his projects, the ARGO and CYCLOPS satellite systems,
generated controversy due to their closed-bidding which was
handled by his business friend Chen Hsia-lin. When Wu was
called in to testify at the Legislative Yuan to explain
irregularities, his bosses at NARL and NSC refused to back
him up. Wu subsequently got rid of Hsiao Chiu-der, one of
his two deputies, by providing information to the authorities
that led to Hsiao's arrest for leaking secrets. Hsiao,
however, has an ally in Taiwan Solidarity Union (TSU)
legislator Liao Pen-yan, who is the prime mover behind the
latest corruption charges against Wu. After moving Hsiao out
of the chain of command, Wu appointed two technical directors
to help run NSPO. Technical Deputy Director Wu An-ming is
temporarily in charge of NSPO while the investigations
continue.
COMMENT.
--------------
5. (C) Wu's current contract expires in July. Even if not
found guilty, it does not seem likely he would be given an
extension. The NSPO parent organization NARL, or ultimately
the National Science Council (NSC),will need to focus on
overhauling the management of NSPO. Space projects currently
in the pipeline will also be carefully scrutinized for any
TAIPEI 00001248 002 OF 002
irregularities. Undoubtedly, this will lead to further
delays. NSPO's goal of building and launching its own
satellite by 2011 may well have to stretch on into the
future. END COMMENT.
YOUNG