The Taipei District Court yesterday approved the detention of three executives of a contracting company accused of using fake fire-retardant paints in work at the Southern Branch of the National Palace Museum.
Authorities on Wednesday raided the offices of En Chi Industry Co (恩企實業) in Taipei and 14 other locations, gathering material and taking in 14 people for questioning.
The Taipei District Prosecutors’ Office said it plans to press charges for fraud, forgery of documents and offenses against agriculture, industry, and commerce against the three executives: Wang Hui-nan (汪惠南), Liao Hsueh-yuan (廖學源) and Chou Jung-hua (周榮華).
Photo: Chien Jung-feng, Taipei Times
The district court yesterday afternoon ordered that the three be held incommunicado.
Prosecutors said that En Chi was also involved in similar cases at other government-tender construction projects, including the Taipei Basketball Gymnasium at Heping Elementary School for next year’s Universiade Games and the Taipei Performing Arts Center, both of which are still under construction.
Investigators said that the En Chi executives falsely claimed the company was Taiwan’s sole authorized dealer of UK-based Phoenix Precision Paints and have been selling counterfeit Phoenix 270 and Phoenix 168 fire-retardant paint products since 2011.
The company made the counterfeit paint using low-grade materials and cheap chemical ingredients, and sold it for NT$550 (US$17.4) per barrel, while authentic Phoenix products sell for about NT$1,600 per barrel, prosecutors said.
They estimated that sales of the fake paint could have brought in NT$200 million in profit.
Tests showed that En Chi’s products did not have fire-retardant properties, but the company presented what it said were Warrington certificates for the paint, prosecutors said, adding that the documents were forged by En Chi executives.
The company was a subcontractor, providing paint and other building materials to Leeming Construction Co (麗明營造), the main contractor for the government-tender project for the museum in Chiayi County’s Taibao City (太保).
Construction of the museum was offered for public tender three times, with Leeming Construction securing the contract with a NT$2.6 billion bid in 2012.
Construction was completed in December last year.
Government officials said that parts of the project would need retrofitting in light of the En Chi allegations and authorities would seek compensation from Leeming Construction over breach of contract.
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