Kinmen LED street light procurement rumored to be fraudulent: manufacturers profited over one million
Recently, a fraud case has been reported in the LED street light renovation project in Kinmen, Taiwan. The person in charge of the Kinmen County Government Maintenance Engineering Office named Bai and the manufacturer named Lin are suspected of collusion in the procurement and acceptance process, and the amount of profits exceeded NT$7 million (NT$, the same below, approximately RMB 1.423 million); the prosecutor ordered the two to post bail of NT$100,000 each on the 19th.
The original bid amount for the Kinmen County LED street lamp procurement case was 28 million yuan (approximately RMB 5.6919 million). In 2011, the manufacturer involved in the New Taipei City case won the bid for 18 million yuan (approximately RMB 3.6591 million), and the acceptance process was completed in 2014.
However, there were rumors of fraud during the renovation process, and an investigation was launched in 2012. The inspection team spent the whole night interviewing Kinmen County Maintenance Engineering Director Dong Hanyao, Section Chief Li, the person in charge of the procurement business Bai, manufacturers, and staff. It was found that when the company handled the LED street lamp procurement case from 2010 to 2011, it was suspected that the manufacturer had already been pre-selected, and that the company had self-selected the purchased products, compared prices, and selected the purchasing manufacturer until the post-acceptance process was completed. All of them were suspected of escorting them all the way.
The inspection found that the purchased LED street lamp products were inconsistent with the specifications required by the original bid. The most obvious thing was that the origin was "Mainland China" and not "Made in Taiwan" as specified in the procurement case. The initial profit for the manufacturer was estimated to be more than 7 million yuan (approximately RMB 1.423 million). The person in charge of the case named Bai and the manufacturer named Lin both denied collusion and fraud. After the interrogation, they were released on bail pending interrogation. The rest were asked to return.
Chief prosecutor Liu Yingfang pointed out that there were more than 10 manufacturers that were eligible to bid, and finally 3 participated in the price comparison based on the provisions of the "Public Supply Contract". The prosecutor will continue to verify the current evidence collection materials and the confessions of the persons involved, and does not rule out the possibility of a new wave of interviews and upward development.