Taipei, Sept. 21 (CNA) The Ministry of National Defense denied Friday an accusation that it has stashed large sums of surplus funds from arms procurement projects.
According to the China Times Weekly, the ministry has purchased over NT$710 billion (US$24.23 billion) in weapons and military equipment from the United States over the years, for which tens of billions of Taiwan dollars were set aside as reserves for potential termination liability.
However, only NT$8.9 billion of the reserve funds, or less than 20 percent of the total, have been returned to the state coffers, the magazine said.
Denying the report, military spokesman Luo Shou-he said reserves for termination liability are considered part of procurement funds, which are transferred into payment according to the progress of the procurement project.
Any surplus funds from arms purchase projects are returned to the state coffers, he said.
(By Chen Pei-huang and Y.F. Low)