Former Taiwan Fertilizer Corp chairman Hsieh Sheng-fu (
Hsieh had been detained by prosecutors on Thursday on suspicion of offences relating to the developing Zanadau Development Corp scandal. But yesterday's indictment was on separate charges.
"Prosecutors have been working on this case for three years," said Chen Hung-ta (陳宏達), spokesman of the Taipei District Prosecutors' Office.
"Hsieh's detention on Thursday was due to his alleged involvement in the Zanadau case. But today's indictment was quite separate and had nothing to do with the Zanadau case. They are two separate cases," Chen said.
Four of Hsieh's former colleagues were also indicted yesterday for violating the Securities Exchange Law, although they have not been detained.
They are Taiwan Fertilizer's former general manager, Kuo Yao (郭耀), former financial section chief Yeh Shu-ting (葉淑婷) and former financial section employees Yang Jen-hao (楊人豪) and Chang Yu-hsien (張宇賢).
Taipei Prosecutor Tsai Hsing-hua (
The former state-run Taiwan Fertilizer was privatized on Sept. 1, 1999. The company established four subsidiaries on Sept. 10 that same year -- Taiyu, Liensheng, Taichuang and Taisheng.
Hsieh allegedly asked the other defendants to deceive investors by telling the media that Taiwan Fertilizer's annual profit would reach NT$6 billion in fiscal 2000, three times more than the previous annual average.
Hsieh also allegedly withdrew a total of NT$600 million from the four subsidiaries to purchase Taiwan Fertilizer shares in a bid to artificially inflate the share price.
Hsieh is being held at the Taipei Detention House while prosecutors investigate his case.
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