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Old Posted Apr 25, 2006, 6:27 AM
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Originally Posted by taiwan ren
TRA suspends tenders after possible bid-rigging
By Chang Ling-yin

The Taiwan Railway Administration announced on Sunday that it had suspended three tenders valued at NT$17 billion to purchase railroad cars after allegations surfaced that one of its engineers was involved in bid-rigging a number of railway purchases.

TRA engineer Yu Chang-shou, who has been under intense investigation since last Thursday, is suspected of leaking the floor prices of railway purchasing projects to potential contractors in return for benefits or being entertained.

Following a request by Administrative Deputy Transportation Minister Ho Nuan-hsuan to re-examine all of its current bidding projects, and under pressure after the corruption revelations, the Railway Administration decided to suspend the three major tenders.

TRA deputy chief Huang Min-ren indicated at a press conference on Sunday that to ensure the integrity of the tenders, his agency had decided to suspend the projects until all related bidding documents were carefully reviewed.

One local newspaper said the purchasing deal may be frozen for at least six months to allow the agency the time to clear the record, which is expected to complicate the fierce battle between Japanese and Korean firms vying for the contracts.

The Railway Administration is looking to purchase 316 railway electric multiple units (EMUs), valued at approximately NT$11.6 billion, and 20 diesel-electric locomotives and 30 electric locomotives worth about NT$6 billion.

According to one local newspaper, the railway administration's Deputy Director-General Chen Feng-nan indicated that after reviewing all major purchasing projects conducted over the past two years, the TRA had identified 16 cases that may have been tainted by bid-rigging, including 13 that had already been awarded. The remaining three, for the railways cars and locomotives, would be suspended at once.

Huang stressed that nothing improper had been found in these tenders to date, but said the deals were so significant that the TRA had to review all related bidding documents before moving forward.

The TRA further emphasized and promised that the suspension of the three purchasing projects would not adversely affect rail services.

The TRA pointed out that the main purpose of purchasing the 316 EMUs was to replace aging Chu-kuang Express and Fu-Hsing Express cars to provide faster and more comfortable trips for railway passengers.

With the tenders for the new cars and locomotives on hold, the TRA would thoroughly maintain currently operating Chu-kuang and Fu-Hsing express trains to make sure they last as long as possible, Huang said.

Some observers have also questioned whether the agency's purchasing staff should continue to be responsible for the agency's big buys in the wake of the corruption allegations.

Huang said the TRA is considering replacing them to weed out any other individuals who might have contributed to the bid-rigging, but he said no moves would be made until the agency had concluded its own investigation into the corruption scandal.
Yeah, so I've read. Horrible news indeed!
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