The Swiss voice in the world since 1935

Switzerland to return $266 million in illegal commissions to Taiwan

ship
The frigates were sold by France to Taiwan at an inflated price. Ap / Lee Chuan-shen

The money, worth CHF240 million, is part of illicit kickbacks on the sale of six French-made Lafayette warships to Taiwan in 1991. 

The decision of the Taiwanese Supreme Court at the end of 2019 confirming the illegal origin of the funds held in Swiss bank accounts has paved the way for restitution of the second tranche of $266 million.  

This is likely to be the last restitution by the Swiss in this corruption case. “It could not be proven that the other frozen funds were derived from corruption, so the sequestration of these assets will be lifted,” the Federal Office of Justice said in a statement on Thursday. 

Long battle 

It is alleged that the French former state-owned firm Elf Aquitaine, used bribes – which ended up in Swiss bank accounts – to persuade French and Taiwanese authorities to approve the sale of the frigates. These were sold via another French firm, Thomson-CSF (now Thales), in a deal that was worth an estimated $2.5 billion.  

In 2001 Taiwan submitted a request for legal assistance to Switzerland in connection with the suspected kickbacks. The Alpine nation froze assets of almost $900 million and handed over numerous documents concerning blocked bank accounts to Taiwan in 2005. 

In 2007 Switzerland, with the agreement of the account holders, returned a first tranche of $34 million to the Taiwanese authorities. 

Popular Stories

Most Discussed

News

Lakes in Central Switzerland have the best bathing water quality

More

Lakes in Central Switzerland have best water quality for bathing

This content was published on Anyone who swims in a lake in Central Switzerland need have no fear of infection from intestinal bacteria. The water samples taken at 65 bathing sites in 13 lakes all have good to excellent bathing water quality.

Read more: Lakes in Central Switzerland have best water quality for bathing
Historic ring stolen from Basel museum

More

Historic Russian ring stolen from Basel museum

This content was published on Unknown assailants have stolen a historic ring from a Basel museum. The stolen item was a gift from Russian Tsar Alexander I to his host in Basel in 1814.

Read more: Historic Russian ring stolen from Basel museum
Ceasefire drives stock markets higher

More

Ceasefire drives stock markets higher

This content was published on The ceasefire in the Iran-Israel war has visibly eased tensions on the financial markets. The SMI, Switzerland's leading stock market index, has risen above the 12,000 point mark again.

Read more: Ceasefire drives stock markets higher
Swiss stick to tipping in cash

More

Swiss stick to tipping in cash

This content was published on The vast majority of Swiss people tip in restaurants – and preferably in cash. However, there are regional differences.

Read more: Swiss stick to tipping in cash

In compliance with the JTI standards

More: SWI swissinfo.ch certified by the Journalism Trust Initiative

You can find an overview of ongoing debates with our journalists here . Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR