Case File
Taiwan’s Lafayette Frigate and Mirage Scandal
Contents
Introduction
Introduction
contentsIn 1993, the body of a naval officer investigating the Lafayette frigate deal suspiciously washed ashore in the small town of Suao, on Taiwan's eastern coast. This incident triggered multiple investigations into the deal, revealing a widespread corruption network involving high-profile individuals. The scandal resulted in several suspicious deaths, including those of key negotiators and witnesses. The French company responsible for producing the Lafayette frigates had bribed Taiwanese Navy officials to secure the contract.
Initially, Taiwan had planned to purchase 16 frigates from South Korea in 1988, but in 1991, the then-Premier Hau Pei-tsun changed course during a visit to France, opting to acquire six Lafayette-class frigates instead. The $2.8 billion deal, known as the “Bravo” contract, was signed in August 1991. French companies Thomson-CSF (now Thales) and DCNS (now Naval Group) were responsible for the shipbuilding. Additionally, in November 1992, Taiwan’s Air Force bolstered its military power by purchasing 60 Mirage 2000-5 fighter jets from Dassault Aviation, a French manufacturer, along with missiles and support equipment, amounting to $4.9 billion.
Case Details
Case details
contentsActors
Actors
contentsThomson-CSF (now Thales) - Partially state-owned French arms company; Paris, France; manufactures electrical systems.
DCNS (now Naval Group) - Partially state-owned French shipbuilding company; headquartered in Paris, France.
Dassault Aviation - French arms company; headquartered in Paris, France; manufacturer of military aircraft.
Matra (now MBDA) - Missile manufacturer; headquartered in Le Plessis-Robinson, France; a joint venture of Airbus, BAE Systems and Leonardo.
Snecma (now Safran Aircraft Engines) - French aerospace engine manufacturer; subsidiary of Safran; headquartered in Courcouronnes, France.
François Mitterrand - President of France (1981-1995); allegedly authorised bribes.
James Soong Chu-yu - General secretary of Taiwan’s ruling Kuomintang (KMT) Party (1989 - 1993); allegedly took kickbacks from the Lafayette contract through shell companies and foreign bank accounts.
Wang Chuan-pu (Andrew Wang) - Agent of Thomson-CSF; allegedly facilitated bribes; also known as "Mr. Shampoo" (a nickname derived from the sound of his Chinese name and his reputation for money laundering).
Yin Ching-feng - Taiwanese Navy Captain and whistleblower; murdered in 1993.
Kuo Li-Heng – Colleague of Yin Ching-feng; accused and convicted of leaking military secrets and receiving bribes. Sentenced to life in prison, but released after 20 years in 2013.
Roland Dumas – French foreign minister (1984-86, 1988-1993); accused, convicted, and acquitted on appeal of receiving bribes from his mistress in exchange for softening opposition to the frigate deal.
Hau Pei-tsun – Taiwan’s premier (1990-1993) during the negotiation of the Lafayette deal; accused of responsibility in modifying the terms of the tender but not impeached.
Yang Yi-Li - Yin’s nephew; found dead in a bathtub filled with water in 1996; suspected to be murder.
Jean-Claude Albessard - Former General Manager of Thomson Japan; died in unusual circumstances in 1997.
Thierry Imbot - Former French Secret Service agent; died in 2000 after suspiciously falling from a window of his apartment in Paris, France.
Jacques Morrison - Former Taiwan-based Thomson employee; died in 2001 after suspiciously falling from a window at his house in Neuilly-sur-Seine, France.
Allegations
Summary of Corruption Allegations
contentsInvestigations uncovered a vast bribery network at the heart of the Lafayette frigate deal, with Andrew Wang, a Thomson-CSF representative, playing a central role. Wang's extravagant lifestyle in London and his family’s extensive offshore accounts further exposed the corruption. Legal actions by French and Taiwanese authorities resulted in significant fines and the freezing of illicit assets, much of which were hidden in Swiss bank accounts. The scandal implicated high-ranking political figures, including former French President François Mitterrand and members of Taiwan's political elite. Numerous convictions and the recovery of millions in illicit funds marked the case as a watershed moment, revealing the pervasive corruption in global military procurement.
Former French Foreign Minister Roland Dumas later admitted, both in a book and TV interviews, that the French government, through the partially state-owned oil company Elf Aquitaine, had paid $500 million in bribes to secure the frigate deal. Of this, $400 million allegedly went to Kuomintang (KMT) Chair James Soong, and $100 million to the Chinese government to ease objections from Beijing. Soong likely acted as a middleman rather than the final recipient. Elf Aquitaine, which was later implicated in a broader investigation, had long been used as a vehicle for French state policy, serving as a slush fund to bribe politicians and officials both domestically and abroad.
Despite efforts to resolve the case, the scandal continued to unfold over decades, exposing the deep roots of corruption. The Lafayette scandal remains one of the largest naval contracting corruption schemes in modern history. Court testimonies suggested that approximately $520 million in kickbacks were distributed to high-ranking officials in Taiwan, France, and mainland China, though the total cost—especially when factoring in the Mirage fighter jet contract—was likely much higher.
Timeline
Timeline
contents- The Taiwan government’s original plan was to purchase 16 South Korean-made frigates
- On a trip to France back in 1990, then-Premier Hau Pei-tsun, ordered the Taiwan Navy to cancel its plans to purchase South Korean frigates, and instead purchase Lafayette-class frigates from France.
- AugThe $2.8 billion Lafayette deal was signed. Taiwan purchased six navy frigates from French company Thomson-CSF. DCNS would be responsible for the shipbuild.
- NovThe Taiwan Air Force also acquired 60 Mirage 2000-5 fighter jets from the French aircraft manufacturer Dassault Aviation, the electronics manufacturer Thomson CSF (since become Thales) and the engine manufacturer Snecma (since become Safran). With the purchase, Taiwan also became the first overseas customer of the Mirage 2000-5. The agreement also encompassed 480 Magic short-range air-to-air missiles, 960 MICA intermediate-range air-to-air missiles, auxiliary fuel tanks, ground support equipment, and monitoring equipment. The total cost of the deal was $4.9 billion, with $2.6 billion allocated for the aircraft.
- MarOriginally, the ships were to be built in Taiwan by China Shipbuilding Corporation, but this policy was discarded in favor of a direct purchase from DCNS.
- JunSoong’s Credit Suisse account was opened, three months after he stepped down as KMT secretary-general. Account closed in 2010. Its maximum balance recorded was $11.18 million, a figure unattainable from his official salary. He is later accused of receiving bribes in relation to the deal.
- NovCaptain Yin Ching-feng was part of the 1993 Taiwanese team that made visits to DCNS in France to inspect the frigates’ construction. After he began collecting information on the ships’ deficiencies, he was anonymously accused in November 1993 of corruption associated with a different procurement deal.
- 12 AugTo protect himself, Yin made an attempt to document the Lafayette deal, visiting and speaking to key players on the Taiwanese side of the transaction. The next day he disappeared.
- 12 SepHe was the first of eight suspicious deaths linked to the Lafayette case, after his body was discovered off Taiwan’s east coast. That morning, he had planned to meet Germany-based arms dealer Tu Cheng Chun-chu for breakfast, though she denied any involvement. Yin was believed to be prepared to expose colleagues who had allegedly accepted illegal kickbacks from the deal. A second autopsy, requested by his family, revealed he had been beaten to death, with no water in his lungs, indicating he was already dead before being thrown into the sea.
- 20 DecAndrew Wang, a representative of Thomson-CSF in Taiwan, left the country soon after Yin's death and later established a luxurious life in London, UK. He had allegedly offered a bribe of NT$9.5 million (approx $369,000) to Kuo Li-heng.
- 24 MayThe first assembled frigate, ROCS Kang Ding, is delivered to Taiwan.
- 1 NovLater, Yin's nephew, Yang Yi-Li, is discovered dead in a bathtub filled with water at his home in Canada. This unusual death is suspected to be a murder.
- A Taiwanese bank official who acted for the naval dockyards also died in unexplained circumstances.
- The Mirage fighter jets start to enter service with the last batch being delivered in 2001.
- JulMembers of Wang’s family begin to set up multiple accounts at Credit Suisse, the first of many accounts they would open over the next 4 years.
- MarJean-Claude Albessard, the general manager of Thomson Japan who played a key role in negotiating the frigate contract, also died under mysterious circumstances in Japan. He reportedly succumbed to a "sudden cancer," which shocked those close to him, as he had appeared to be in good health prior to his unexpected death.
- 10 OctThierry Imbot, a former French secret service agent and son of the agency's director from 1985 to 1987, died after falling from the window of his Paris apartment just a day before he was scheduled to meet with a journalist. Imbot had been tasked with monitoring the frigate negotiations on behalf of the secret service. Shortly before his death, he reportedly confided in his father, General Imbot, revealing details about the distribution of commissions related to the sale of the Lafayette frigates and Mirage 2000 aircraft.
- 18 MayFormer Taiwan-based Thomson employee Jacques Morrison also died after falling from a high window of his residential building in Neuilly-sur-Seine. He had confided to friends that he feared for his life, as he was the last surviving witness to the negotiations. His partner told the police that, while Morrison was on antidepressants, he had no intention of committing suicide. In the days leading up to his death, he reportedly expressed fears to close associates about being targeted due to his in-depth knowledge of the intricate details surrounding the Lafayette frigates' sale.
- Christine Deviers-Joncour, the former mistress of ex-French foreign minister Roland Dumas, stated that two individuals involved in money laundering related to the Lafayette case died in a mysterious car accident in South Africa.
Outcomes
Investigation Outcomes
contents- French investigations relating to the deal began in the 1990s following the eruption of the Elf Aquitaine scandal.
- Former Foreign Minister Roland Dumas was investigated in relation to claims by his ex-mistress, an Elf employee, that she had paid him bribes from Elf in relation to the frigate deal to overcome his opposition to arms sales to Taiwan.
- 25 SepTaiwan High Court charged Wang with Yin’s murder in absentia.
- 30 MayRoland Dumas was sentenced by the Paris Criminal Court to six months in prison, with an additional two-year suspended sentence, and fined one million francs for his role in France's expansive Elf scandal, which unfolded alongside the Lafayette corruption case.
- JunSwitzerland began freezing suspicious bank accounts belonging to the Wang family
- 6 NovTaiwan has officially requested Switzerland's assistance in recovering illegal proceeds from the Lafayette deal held in Swiss accounts. The ensuing Swiss investigation targeted 46 accounts belonging to Wang and his family, some of which were held at Credit Suisse.
- FebThe winner of the 2000 Taiwanese presidential election, Chen Shui-bian, had been a vocal critic of the Lafayette affair. He tasked the Control Yuan, the supervisory and auditory branch of the government, with investigating the case after his victory. This body severely criticised the navy over the way the deal was conducted and revealed that the price of the deal had been inflated from 10 billion Francs to 15 billion (USD 2 billion – although the contract was eventually USD 2.8 billion).
- MayDumas was subsequently convicted for embezzlement from the public treasury, but acquitted on appeal in 2003.
- Control Yuan's final report confirmed that commissions were paid, although a figure does not appear to have been given at that time. President Lee was exonerated and responsibility for masterminding the deal was assigned to Premier Hau. The report did not, however, call for Hau’s impeachment.
- 24 JanThe Paris Court of Appeal cleared Dumas, overturning his previous conviction.
- 1 MarFormer French foreign minister Roland Dumas revealed that a $500 million commission was paid by the French state and its arms companies in 1991 during the sale of six Lafayette-class frigates to Taiwan. The payment was authorized by then-President François Mitterrand and was known to the premier, as well as the finance and budget ministers. Of the total amount, $400 million went to the secretary-general of Taiwan’s then-ruling party, the Kuomintang (KMT), while $100 million was paid to the Chinese Communist Party's Central Committee in Beijing. China, which maintains diplomatic relations with France, prohibits arms sales to Taiwan. Although Dumas did not specifically name the secretary-general, James Soong held that position from 1989 to 1993.
- 6 NovThe Taiwanese Navy filed a lawsuit against Thomson-CSF (now Thales), seeking $590 million in damages related to the 1991 Lafayette deal. This sum includes $500 million for alleged bribes paid to officials from France and China to secure the deal, and $90 million for the reputational damage the Lafayette scandal caused. The payments to China were reportedly intended to silence opposition to the arms deals between France and Taiwan.
- SepSerge Dassault exerted pressure on the editorial team of Le Figaro, a newspaper he owns via Socpresse, to prevent the publication of an interview with Andrew Wang, the primary intermediary for contracts involving frigates and fighter planes.
- 26 AugPremier of Taiwan, Frank Hsieh, gave the "no death penalty" assurances regarding Wang, and the Swiss court was satisfied, enabling the transfer of the documents.
- 6 OctThe Swiss court further ruled that bank documents relating to the Lafayette kickback case should be turned over to Taiwan's government because it had guaranteed that it will not invoke the death penalty against Wang.
- 27 OctThe Swiss Federal Commission approved the handover of bank files to foreign judicial authorities concerning the controversial sale of French warships to Taiwan. For fear of offending China, the commission said its decision doesn't constitute a diplomatic recognition of Taiwan.
- 28 SepThe Taipei District Prosecutor's office indicts eight suspects on corruption charges: Wang and his family; as well as Kuo Li-heng, a former naval captain who has been imprisoned for years for involvement in another corruption case, and his brother Kuo Wen-tien. Due to insufficient evidence, no government officials had been implicated, including former President Lee Teng-hui and former Chief of the General Staff Hau Pei-tsun.
- Prosecutors sought a life sentence for Wang, 16 years for his wife, Yeh Hsiu-chen, and prison terms ranging from 11 to 14 years for his children.
- The Taiwanese Ministry of National Defense offered a reward of NT$100 million (approx $3 million) for anyone who could help crack the Lafayette case.
- 13 JunSwiss Authorities returned $34 million in frozen bank deposits to Taiwan.
- The French investigation into potential retro-commissions stemming from the Taiwanese deal was called off after prosecutors failed to establish that bribes had been paid back into the French political system.
- The International Court of Arbitration at the International Chamber of Commerce ruled that Thomson CSF – now Thales – had breached an anti-corruption clause in its contract with Taiwan for the frigates. The court ordered the company and the French government to pay Taiwan an $830 million fine after a failed appeal the following year. The amount representing the amount of the bribes plus interest.
- 9 FebAfter receiving Taiwan’s request for mutual legal assistance in late August, Jersey Island’s Royal Court decided to take possession of the illicit payment that Wang Chuan-pu (Andrew), also known as Andrew Wang, and his son Wang Chia-hsing deposited in the island’s local bank. The Jersey court seized $6.87 million from accounts controlled by the Wang family. Accounts in Switzerland, the Cayman Islands, Luxembourg, and Saudi Arabia were also identified by investigators.
- A French court ordered the French arms company Thales (formerly Thomson-CSF) to pay Taiwan about EUR 630 million (approx $876 million), EUR 170 million (approx $236 million) for Thales and EUR 460 million (approx $639 million) for the state, in compensation for the illegal commissions paid during the frigate deal, which was part of the broader scandal encompassing the Mirage jet contract. Thales and the French government agreed to pay after the ruling was confirmed on appeal in 2011, with the amount split 72.5% from the French government on behalf of DCN, and 27.5% from Thales.
- NovFollowing the legal victory in the Lafayette case, the ministry in 2012 sued for compensation over bribes that were allegedly paid for Mirage 2000 fighters.
- After finalising the judgement, the Supreme Court convicted only one person in Taiwan over the deal - Captain Kuo Li-heng. He was convicted of receiving bribes from Andrew Wang. He was sentenced to 15 years in prison, but as he was already serving 20 years for leaking state secrets, in the end, he only spent an extra 6 months in prison over the frigates, due to a general commutation rule. The 6 months were due to his inability to pay a fine on top of the prison sentence. Six other senior naval officers were charged with corruption, but acquitted. Kuo’s brother was convicted on a money-laundering charge related to the corruption.
- JanWang passed away in London at the age of 86, having lived with his wife in a mansion near Hyde Park. He left behind at least $800 million in frozen assets in Switzerland. While prosecutors have indicated that his family members remain wanted in Taiwan, the case against Andrew Wang has been dismissed following his death.
- 6 JulTaiwanese prosecutors requested Swiss authorities freeze $970 million of Wangs’ assets – frozen funds in 46 accounts and $486 million of interest. Overall, investigators found that the Wang family had transferred their illicit gains to 61 foreign bank accounts, extending across Switzerland, Austria, Liechtenstein, Luxembourg, the Isle of Man and the British Channel Island of Jersey and more.
- After the Taiwan Ministry of Defense sued the French government in 2012, the case cleared preliminary legal procedures, now to be heard at the court of arbitration.
- 25 OctThree French arms companies are fined EUR 227 million (approx $257 million) by the Permanent Court of Arbitration. EUR 134 million (approx $151 million) for Dassault Aviation. EUR 64 million ($72 million) for Thales and EUR 29 million (approx $33 million) for Safran. The total is identical to an amount Taiwan was seeking in arbitration over the allegedly wrongful use of commissions in the sale of 60 Mirage fighters.
- 13 JanAirbus were fined EUR 104 million (approx $123 million), concerning the sale of missiles to Taiwan by Matra, later acquired by MBDA, a joint venture between Airbus, Bae Systems and Leonardo.
- OctThe Taiwan Supreme Court issued a final ruling directing prosecutors to seize $312.5 million in "criminal income" connected to the Lafayette scandal.
- The Taiwanese Supreme Court ruled that, as third parties, Wang’s family could not be convicted of receiving kickbacks, despite having received criminal proceeds.
- Although Bruno Wang, who identifies as a Chinese philanthropist, is wanted in Taiwan on corruption charges, he met with British Prince (now King) Charles, donating £500,000 ($683,522) to his charity, the Prince’s Foundation. Bruno is currently embroiled in a cash-for-honours scandal related to his contributions.
- FebSwitzerland agreed to return $265 million in "illegal commissions," confirming this as the final repatriation of Lafayette-linked funds. According to the Taipei justice ministry, Taiwan has agreed to share the assets with Switzerland at a ratio of 50 to 50 to facilitate “long-term international collaboration”.
- The process of helping Taiwan locate and seize illicit funds through mutual legal assistance was concluded after Swiss authorities decided in February 2021 to return $266 million to Taiwan, marking the last repatriation of funds.
- A news report revealed that Credit Suisse had flagged Wang's account to Swiss authorities due to unspecified suspicious activity. A Swiss judgment indicated that Wang was suspected of distributing $400 million in bribes to Taiwanese officials. Additionally, he allegedly paid $100 million to members of China's communist party to mitigate potential diplomatic tensions, as China was likely opposed to Taiwan strengthening its navy. According to a report from Taiwan's Ministry of Justice, Wang also leaked military intelligence to his French counterparts, organised secret meetings to give French negotiators an advantage over competitors, and attempted to artificially inflate the overall contract price.
- AugTaiwan’s Supreme Court approves seizure of an additional $400 million of Wang’s family assets, mostly held in Switzerland.
- 22 FebPolitician James Soong has been implicated in the Taiwan frigate scandal, in 2022 a relevant bank account was revealed as part of the Suisse secrets leaks.
- 2 DecWang’s family challenged the Taiwanese government’s seizure of $480 million, but the court ruled the seizure to be constitutional.
- FebLiechtenstein returned around $11.03 million to Taiwan.
- 11 JulSwiss authorities once again agreed to assist the process and transferred $138.04 million back to Taiwan.
- 9 JanWang’s wife, Yeh Hsiu-chen, along with their sons Wang Jia-hsing (Bruno), Wang Jia-yung, and Wang Jia-ming, as well as their daughter Wang Jun-ling (Rebecca), a UK-based socialite and entrepreneur in the entertainment industry, avoided charges for their involvement in the separate procurement of French Mirage jet fighters in 1992. However, prosecutors noted that they are still wanted for their roles in the Lafayette case. Allegedly, Wang received $260 million in kickbacks related to the Mirage deal, according to prosecutors.
- 16 FebA new agreement has been reached between Paris and Taipei for the modernization of the six Lafayette-class frigates built in the 1990s in Lorient for the Taiwanese navy, at a cost of $79.2 million. France’s DCI Group will deliver the combat system parts and accessories no later than January 18, 2026.
- 28 MarTaiwan's military commits to spending $328 million on purchases of engine spare parts for the Air Force's Mirage 2000-5s fleet, to ensure combat readiness after more than two-decades in service. The staggering cost is due to Dassault no longer manufacturing the aircraft. The Mirage costs $25,000 to operate per hour.
- 7 MarRoland Dumas passed away at the age of 101 in Paris, France.
- Soong remains active in Taiwanese politics as the founder and current Chairman of the People First Party. He has run unsuccessfully for President in every election since 2000.
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Information Last Updated
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