SEOUL, Oct. 20 (Yonhap) -- The arms procurement agency on Tuesday banned LIG Defense & Aerospace Co. (LIG D&A) from bidding on defense contracts for two years over allegations that the company bribed an agency official during a bidding process for weapons development projects.
The Defense Acquisition Program Administration (DAPA) said the decision had taken into account the fact that it was the largest bribery case since the agency's establishment, and taking into account the potential impact of such misconduct on national security and public trust in the defense procurement sector.
A two-year ban is the most severe penalty allowed under relevant law.
The DAPA employee was detained and indicted in July on charges of receiving 460 million won (US$340,000) as bribes from officials at LIG D&A and other defense contractors during the bidding process.
LIG D&A expressed regret over DAPA's decision to impose the ban solely based on the indictment while the legal proceedings are still ongoing and said it plans to take legal action to challenge the decision.
This undated file photo, provided by the city of Jinju, South Gyeongsang Province, shows the Defense Acquisition Program Administration building. (PHOTO NOT FOR SALE)(Yonhap)
julesyi@yna.co.kr
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