The Defense Acquisition Agency has decided to impose a maximum-level sanction on defense contractor LIG D&A, restricting its eligibility to participate in public bids for two years due to bribery and cost manipulation.
On October 20, the agency held a Defense Business Contract Review Committee meeting at the Government Complex in Gwacheon, where it deliberated and voted on the sanctions against LIG D&A.
This action follows the prosecution's announcement on August 20 regarding the bribery and cost manipulation case involving LIG D&A.
After reviewing the bribery and fraudulent cost estimation that occurred during the relevant contract process, the committee voted to impose the highest level of sanction under Article 27 of the National Contract Law, which is a '24-month restriction on bid eligibility.'
The Defense Acquisition Agency cited the unprecedented amount of bribery and the long-term, planned nature of the cost manipulation as key reasons for the sanction.
The agency also considered the negative impact of such actions on national security and the overall trust in defense procurement.
During the review process, several private committee members participated and listened to explanations and statements from LIG D&A. The committee then comprehensively examined the legality and potential impact on future defense projects before discussing the methods and severity of sanctions, including bid eligibility restrictions and fines.
Kim Il-dong, the Deputy Administrator of the Defense Acquisition Agency, stated, "Any illegal activities that undermine transparency and fairness, such as bribery and cost manipulation in defense procurement, cannot be tolerated."
He emphasized, "Through this maximum-level sanction, we aim to raise awareness across the defense industry and will continue to apply a zero-tolerance principle regarding corruption in defense procurement."
* This article has been translated by AI.
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