MND told (13^th) that based on the given evidence of Ching-Fu’s violation against the contract MND had informed the company of de-contract according to Government Procurement Act and agreement in the contract.

MND indicated that Ching-Fu Shipyard Enterprise had been involved in Article 15-1-7 in Appendix of the contract “Bankruptcy or other serious incidents cause inability in accomplishment”, and Article 15-1-8 “No improvement in 10 days once receiving the notice of violation against the contract”. These were essential conditions for de-contract and the evidence are as follows:

1. All banks started to apply for 7 jurisdictional enforcement on NTD 6.4 billion. The office building was also sealed by Kaohsiung Court.
2. The company did not pay their subcontractor USD 36 million and the subcontractor had been suspended since January 2017. It was a serious delay for combat system integration.
3. No sign of improvement after the 3^rd deposit NTD 2.4 billion was sequestrated by MND. There was no amendment and postponement over the 1^st to the 3^rd deposit.
4. The company was suspected of deception and malpractice and under the investigation of prosecutors.
5. The detail blueprint was not completed and the domestic shipyard should have been built by May 2017 but failed.

MND re-asserted that the stance was clear and consistent with legitimacy. The 1^st and 2^nd deposit, totally NTD 4.8 billion, and initial deposit NTD 1.7 billion would be sequestrated immediately and by Government Procurement Act, Ching-Fu Shipyard Enterprise would be publicly disqualified. As for the compensation the Navy’s lawyers would calculate it and file a law suit against the company.