Regarding United Evening News reports of “Ministry of National Defense shifts 2.4 billion of Armed Forces weapons budget to Ching-fu due to pressure from above”, the Ministry states today the 14^th that the 3^rd phase of the Navy Minehunter procurement project was due to the hulls collapsing. Ching-fu completed the projects on September 27, 2016. Navy inspections indicated that contract requirements were fulfilled (deposit refund guarantee) and 24.2085 billion dollars were due. The Navy reviewed its capability of paying 13.6160 billion dollars which was 10.5925 billion dollars insufficient and reported to the Ministry for assistance. According to Article 73-1 of the Purchasing Law the project was complete and funds shall be paid. The Ministry thereafter assisted in reviewing Army’s procurement project of generic helicopters which amounted to a total of 4.5 billion dollars under the same branch of the project.

Regarding the use of the “Restriction budget” the Ministry points out that the “Units under the Ministry of Defense – budget adjustment and control operational regulations” was drafted according to the “Budget law”. Funds for the 3^rd phase of Minehunter project shall have been paid according to the “Restriction budget” which is entirely abiding by law and meets budget adjustment regulations, which is habitual and not in any ways illegal or in violation. Reports that “the Ministry shifted funds under pressure from above” are entirely false. The Ministry expresses regret at such reports and urges the media to respect the morals of the practice and avoid affecting judicial investigations.

1/10 of the Navy’s Minehunter 2017 budget of NT 38.8136 million dollars has been frozen by the Legislative Yuan (3.8 billion dollars). The Ministry shall point out that these funds have yet to be approved to be unfrozen and that the budget is still under restriction.