Transnational Corruption in Weapons Procurement in East Asia: A Case Analysis

Abstract

This case study analyzes the Lafayette scandal, which alleges that up to US$760 million in bribes and kickbacks was split among French, Chinese, and Taiwanese officials for the 1992 sale of French frigates to Taiwan. The case was unique in its complexity, intrigue, and repercussions. This analysis focuses on the structural and institutional deficiencies in Taiwan and France that intersected to create opportunities for massive corruption. It also traces how Taiwan and France implemented profound preventive reforms in the aftermath of the scandal. This landmark scandal highlights the need for further global efforts to establish legal frameworks and judicial protocols to tackle corrupt practices that transcend national borders.