Taipei prosecutors issue indictments over Zanadau

Taipei Chief Prosecutor Lin Jinn-tsun (林錦村) yesterday indicted 10 suspects and suspended charges against another seven in the Zanadau Development Corp scandal, while prosecutors stressed that the investigation into the case will continue.

"There will be a second indictment of suspects, including the China Development Financial Holding Corp Chairman Liu Tai-ying (劉泰英), later, because prosecutors have not finished their investigation." said Chen Hung-ta (陳宏達), spokesman for the Taipei District Prosecutors' Office.

Those indicted are Zanadau Development Corp majority shareholder Su Hui-chen (蘇惠珍), Lawson Corp (正暐) President Lee Ming-che (李明哲), former Taiwan Fertilizer Corp (台肥) chairman Hsieh Sheng-fu (謝生富), Senior Adviser to the President Yu Chen Yueh-ying (余陳月瑛), former KMT lawmaker Wong Chung-chun (翁重鈞), former Kaohsiung County Government Public Works Bureau chief Lin Chi-jui (林琦瑞), former Kaohsiung Fifth Credit Cooperative general manager Lee Ming-se (李明色), Zanadau employees Mu Chih-yu (穆治宇), Huang Shao-ying (黃紹瑛) and Fan Chia-chieh (樊嘉傑).

The seven suspects whose charges will be suspended for two years, are Kaohsiung Fifth Credit Cooperative Credit Investigative Section Chief Hung Chen-hsiung (洪貞雄); the bank's Hsinchuang branch manager, Lee Kwang-hsiung (李光雄), Director Hung Chao-jen (洪照仁) and Credit Investigator Lee Fu-hsing (李福興); Yuchang branch Manager Hsu Chun-hui (徐春輝), Director Chen Shou-yao (陳守耀) and Credit Investigator Chen Ming-tsun (陳明村).

All seven have been charged with breach of trust. If they do not break the law within the next two years, however, the charges against them will be automatically dropped.

"The seven suspects' charges were suspended because prosecutors believe they simply accepted orders rather than deliberately committed a crime by receiving bribes of their own volition," Chen Hung-ta said.

Su was charged with violations of the Securities Exchange Law (證券交易法) and Banking Law (銀行法), forgery and breach of trust. Prosecutors requested a four-and-a-half-year sentence for Su, who they suspect used Zanadau's money for private purposes and illegally manipulated the company's stocks as the company's vice president.

Lee Ming-che was charged with corruption, forgery and breach of trust. Prosecutors demanded a 12-year sentence for him, alleging he was the broker behind the scandal.

Hsieh was charged with corruption and faces a possible 14-year sentence for allegedly using Taiwan Fertilizer's money to buy Zanadau stocks and receiving bribes from Su.

Yu Chen was charged with violation of the Securities Exchange Law and breach of trust for allegedly manipulating Zanadau's stocks as the company's president in 1998.

Yu Chen's resignation as a senior adviser to the president was immediately approved by President Chen Shui-bian (陳水扁) yesterday afternoon.

Wong was charged with corruption and faces a possible nine-year sentence for allegedly receiving NT$25 million via Hsieh, as a bribe from Su.

Lin was charged with corruption with a recommended seven-year sentence for helping Su to receive a license for the construction of Zanadau's 11.66 hectare Tahu Commercial Zone (大湖工商綜合區) in Kaohsiung County, when the company did not meet eligibility criteria for such a license.

Lee Ming-se was charged with breach of trust with a suggested four-year sentence. Charges against the rest of the bank's employees were suspended.