Thu, Oct 06, 2016 - Page 12 News List

CTBC says indictment will not affect company

By Ted Chen  /  Staff reporter

CTBC Financial Holding Co (中信金控) yesterday denied prosecutors’ claims that the company’s interests were harmed by the actions of executives who were indicted for conducting a number of questionable asset transactions between 2004 and 2007.

The Supreme Prosecutors’ Office charged eight suspects, including Chinatrust Charity Foundation chairman Jeffrey Koo Jr (辜仲諒), with breach of trust for allegedly embezzling US$300 million in CTBC Financial assets for personal gain.

CTBC Financial said in a statement that CT Opportunity Investment Co (CTO), an overseas subsidiary, did not facilitate the questionable asset transactions.

It added that CTO had contributed US$44.5 million in net investment gains to the parent company at the end of 2012.

The company said it had satisfied all compliance rules in its acquisition of Taiwan Life Insurance Co (台灣人壽保險) last year, and that it did not extend special gains to Gobo Group (國寶集團) president Chu Guo-rong (朱國榮) to facilitate the purchase.

CTBC Financial said that it had consulted with independent institutions to ensure that its purchase of Gobo Group real-estate properties were conducted at fair market prices and would generate investment returns required by regulators.

The company also denied that it had extended loans to Chu.

The indicted executives do not hold key positions on the company’s management team and will not affect its operations, CTBC Financial said.

CTBC Financial shares dipped 0.27 percent to NT$18.40 in Taipei trading yesterday.

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