Taiwanese authorities are investigating alleged kickbacks and other irregularities involving a multi-billion-dollar deal between local carrier China Airlines (CAL) and Airbus, officials said Thursday.
"We have launched a probe into suspected influence peddling and kickbacks involving certain government agencies and companies in this deal," said Chen Yun-nan, head of an investigative unit from the Supreme Prosecutors Office.
Opposition lawmakers earlier this week questioned why CAL had opted for new model jets in the deal, which are still in the development stage, and claimed suspected irregularities were involved.
Prosecutors were planning to question CAL and transport ministry officials, Chen told AFP without elaborating. The ministry is CAL's largest share holder through the state-run China Aviation Development Foundation. CAL announced in January it had signed a contract with Airbus to buy 14 A350-900 jets with an option for another six to be delivered in 2015.
The 20 jets have a combined list price of 4.2 billion dollars but the actual price paid was not released. CAL spokesman Bruce Chen Thursday rejected the allegations as "groundless" adding: "We welcome the investigation."
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