Sat, Dec 16, 2006 - Page 11 News List

Hon Hai's chief accuses reporter of blackmail

NO DEAL Terry Guo said that a `Next' magazine reporter demanded US$1 million if he wanted her to stop writing a book that he thought was detrimental to the company

STAFF WRITER , WITH CNA

Former ''Next'' weekly magazine reporter Tsang Chia-yi talks to the press yesterday, saying she was set up by Hon Hai chairman Terry Gou who had accused her of blackmail.

PHOTO: CHANG WEN-CHUAN, TAIPEI TIMES

Hon Hai Precision Industry Co (鴻海精密) chairman Terry Gou (郭台銘) confirmed yesterday that a reporter from Next weekly magazine tried to blackmail him for US$1 million (NT$32.6 million).

Gou said in a statement released late last night that the reporter, Tsang Chia-yi (臧家宜), approached him earlier this year, saying she would like to write a book about Gou and his company, the nation's largest electronics parts maker.

The Chinese-language United Evening News reported yesterday that Tsang proposed writing the book, which she had titled Burned By the Scorching Sun -- What You Don't Know About Terry Gou, on Aug. 22 and sending Gou an outline for review on Sept. 20.

But reading the outline, Gou said he became concerned about its content.

The newspaper said that Gou found fault with the Tsang's plan to include Hon Hai's alleged tax evasion in the US and China, as well as other alleged misconduct in hiring workers in China.

In the statement, Gou said he had asked Tsang to refrain from writing the book.

In return, Tsang demanded that Gou pay her US$1 million to seal the project, Gou claimed.

Gou reported the case to local police on Oct. 17 and arranged a meeting between Hon Hai rep-resentatives and Tsang on Thursday in order to hand her the money, the statement said.

Gou felt threatened and terrorized after reading the "sensational and viciously spicy" contents of what Tsang sent, police said.

On Thursday police arrested Tsang when she took the money from a safe deposit box at a bank's VIP room, where she also signed a paper pledging to keep the whole incident confidential.

Tsang was arrested on charges of terrorizing a victim and obtaining illicit money, police said.

She was immediately fired by Next weekly where she had been working for two years.

Tsang yesterday denied the accusation, saying the meeting on Thursday was a trap set up by Gou.

Tsang claimed she just mailed the outline to Gou to ask for his comments in order to "balance" her reports about him.

Released early yesterday morning after questioned by prosecutors, Tsang said she had never asked the money from Gou; instead Hon Hai had asked to pay her the money as royalty.

The Next weekly yesterday apologized to Gou for Tsang's unethical and unprofessional behavior, adding that it would cooperate with authorities in the investigation.

Gou said he would not make any further comments on the case as it is now under judicial investigation.

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