Seoul:The arms procurement agency has announced a two-year ban on LIG Defense and Aerospace Co. (LIG D&A) from participating in defense contract bidding. This decision stems from allegations that the company engaged in bribery during a bidding process for weapons development projects.
According to Yonhap News Agency, the Defense Acquisition Program Administration (DAPA) emphasized that this is the largest bribery case since its establishment. The agency considered the potential ramifications such misconduct could have on national security and public trust within the defense procurement sector.
The two-year ban represents the most severe penalty permissible under existing laws. This action follows the detention and indictment of a DAPA employee in July, who was charged with accepting bribes totaling 460 million won (approximately US$340,000) from officials at LIG D&A and other defense contractors during the bidding process.
LIG D&A has voiced its regret over DAPA's decision, criticizing the imposition of the ban based solely on an indictment while legal proceedings are still ongoing. The company has indicated its intention to pursue legal action to contest the ban.