TAIPEI (Taiwan News) — A U.S. national defense official expressed skepticism about the credentials of Gavron Limited, a consultancy appointed to supervise the design of Taiwan’s new domestically-built submarine, Apple Daily reports.

The Gibraltar-based consultancy won a bid to oversee the design of a new submarine by Taiwan Shipbuilding Corporation (CSBC Taiwan). CSBC Taiwan has been contracted by the Taiwanese Navy to provide a new vessel as part of its indigenous defense submarine (IDS) program.

The information is based on word of a Taiwanese scholar who had a private conversation with the U.S. official. Both names were obscured in the report.

According to the U.S. official, even though Gavron Limited has acquired the export permit issued by Gibraltar authorities that allows the company to work with Taiwan as a design consultancy for the project, the permit does not guarantee that Gavron Limited is capable of carrying out the NT$600 million (US$19 million) project. He even suggested the case could be fraudulent.

The official was also worried that Gavron Limited might, because of the contract, acquire classified information about CSBC Taiwan’s design for the submarine, which contains systems provided by the United States.

Last week, Taiwan’s lawmakers also expressed concern over the credibility of Gavron Limited and its export permit, and asked for further verification from the Navy during a legislative session.

The Navy said on Oct. 11 that the contract with Gavron Limited is being handled by the CSBC Taiwan, which chose the best bid in accordance with the government’s procurement and bidding regulations, and by a committee comprising Taiwanese officials, experts, and CSBC Taiwan representatives.