South Korea's defense ministry is investigating a U.S. arms broker suspected of swindling millions of dollars out of the Army by supplying faulty barrels for anti-aircraft guns safeguarding the skies of the nation's capital, officials said Friday.
The ministry started the investigation following complaints by the Army that some of the Oerlikon 35mm twin cannons didn't work properly because of the defective barrels, a ministry official said on the condition of anonymity.
"The investigation is also to determine allegations of bribery involving local procurement officials," the official said, without disclosing the names of the U.S. company.
Under a contract signed in 1998 with South Korea's arms procurement agency, the U.S. broker was required to supply barrels of the anti-aircraft guns by 2003 to the Army by importing them from an overseas manufacturer.
The U.S. broker, however, was suspected of selling barrels made by a non-qualified maker in South Korea by disguising them as imported ones, according to the official.
"We suspect that the U.S. broker swindled millions of dollars by exploiting the method," the official said.
The faulty barrels caused some of the guns to be damaged when firing, the official said, adding the Army is now replacing them with locally developed barrels.
Thirty-six Oerlikon twin cannons are deployed to guard key sites in Seoul, including the presidential office of Cheong Wa Dae, the Army said.