TAIPEI (Taiwan News) — A contractor on the country’s “Clouded Leopard” armored vehicles said Thursday (Oct. 21) it would appeal against prison sentences for its managers linked to the import of sub-quality materials from China.

The Taichung District Court on Wednesday (Oct. 20) sentenced four top managers at Chung-Hsin Electric and Machinery Manufacturing Corporation (CHEM) to prison terms between two years, and six years and six months, and confiscated NT$2.09 billion (US$75.3 million) in illegal income, CNA reported.

The company won a contract in 2012 to supply the chassis for the eight-wheeled armored vehicle, officially known as the CM-32. However, when the vehicles were deployed, the military said they frequently experienced oil leaks and other malfunctions, as CHEM was found to have imported substandard parts from China.

CHEM Chairman Chiang Yi-fu (江義福) received a prison sentence of six years and six months, company President Kuo Hui-chuan (郭慧娟) was sentenced to two years, and Vice President Lee Liang-chang (李良章) to four years and two months.

In a statement Thursday, CHEM said the production of the “Clouded Leopard” chassis was completely legal, with the imported parts having been converted so they corresponded to legal requirements. The company denied having violated its contract with the Ministry of National Defense and having made illegal profits.