In June the takeover task force announced a rescission of the contract with FESS because FESS failed to exploit and hand over a hot spring located on the land by the deadline that was set in the original contract. An important selling point of the land was the unexploited underground hot spring.
The price of the land rose by roughly NT$1 billion within the time it was first purchased by FESS and the time it was sold to TDTC, one year and ten months later.
Prosecutors believe that Wang had conspired with Kao and real estate evaluation companies to exaggerate the value of the land, and to squeeze more money out of the TDTC.
Chou Chi-peng (
But this is just the second half of the story. The prosecutors have seized what they believe to be strong evidence indicating graft in the preceding purchase -- the one between Wang's FESS and Chu Chieh-tseng.
According to prosecutors, NT$189 million out of the NT$845 million paid by FESS to Chu was deposited in seven accounts of another company owned by Wang.
The prosecutors suspect the money was a kickback to Wang taken from Chu.
The investigation of the case is a symbol of Chen Shui-bian (陳水扁) resolution to crack down on "black gold" crimes.
However, Chen Tze-lung and Hsieh Li-kung both stressed that the battle against black gold would only succeed if an objective mechanism of property evaluation is established.
"Otherwise, the innocent could be convicted and the guilty acquitted," Chen said.
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