The episode revealed deep-seated problems in the defense-contracting process. In February, Kaohsiung prosecutors indicted four executives and one consultant of the Ching Fu Shipbuilding Co., charging them with fraud, breach of trust, and violation of banking laws. If convicted, the defendants could face prison sentences ranging from 20 to 30 years, although the prosecution has…

Indictment Brought In Ching Fu Scandal Four executives at the Ching Fu Shipbuilding Co., including chairman Chen Ching-nan, were indicted by the Kaohsiung District Prosecutor’s Office on February 12 on charges of fraud, breach of trust, and banking law violations. Prosecutors recommended a 30-year prison sentence for the chairman, commutable to a NT$1 billion (US$34…

FARGLORY FOUNDER FACES PRISON SENTENCE Farglory Group founder and chairman Chao Teng-hsiung is facing a 24-year prison sentence on charges of bribery and breach of trust involving several public construction projects. Following a four-month investigation. The Taipei District Prosecutors Office arrested 31 people including Chao, New Taipei City councilor Chou Sheng-kao, and Lee Shush-der, the Taipei…

Volkswagen will recall nearly 18,000 cars in Taiwan affected by the company’s diesel emissions scandal from January 1, the German automaker’s Taiwan branch announced in November. News of the scandal broke in September when the U.S. Environmental Protection Agency (EPA) revealed that diesel-powered Volkswagen cars sold in the United States were equipped with illegal software…

Formosa Plastics Corp.’s president Lin Chen-jung resigned on July 27 in the wake of a bribery scandal that caused another 24 executives at the firm to be fired and subject to criminal investigation. The allegations span seven years and involve kickbacks paid by suppliers. Formosa Plastics Corp. is the flagship company of the sprawling Formosa…