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Switzerland returns corrupt frozen millions to Taiwan

French frigate
The scandal is linked to a 1991 contract for French frigates to Taiwan. Keystone / Lee Chuan-hsien

Switzerland has returned $138 million to Taiwan in connection with a corruption scandal in which ill-gotten gains were deposited in Swiss bank accounts, the Taiwanese justice ministry said on Wednesday.

The scandal dates back to 1991 and concerns illegal kickbacks linked to a 1991 contract to sell six French frigates to Taiwan. One of the intermediaries, Taiwanese businessman Andrew Wang who died in 2015, was accused of taking bribes in connection with the $2.8 billion contract. Both Switzerland and Liechtenstein blocked funds in accounts allegedly linked to the case.

Switzerland seized some $900 million. It returned $34 million in 2007.

The Swiss authorities transferred $138.04 million dollars to Taiwan on July 11, the ministry said in a statement, hailing “a historic breakthrough in judicial cooperation”. According to the ministry, Switzerland froze more than 20 bank accounts controlled by the Wang family between 2001 and 2003 and offered to share the seized assets.

“As Switzerland has provided assistance in this case for more than 20 years, Taiwan has agreed to share the assets with Switzerland on a 50-50 basis to facilitate cooperation,” AFP reported its justice ministry as saying.

This comes after Liechtenstein in February returned $11 million linked to the same case.


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