Sun, Jun 27, 2004 - Page 2 News List

Prosecutors detain Procomp boss over company's assets

STRANGE ACCOUNTING Prosecutors said the company's chairwoman could not explain all the suspicious transactions they had unearthed

By Jimmy Chuang  /  STAFF REPORTER

Procomp Informatic Ltd (博達科技) Chairwoman Yeh Su-fei (葉素菲) was detained yesterday on charges of breach of trust as well as alleged violations of the Securities Transaction Law (證券交易法) and Accounting Law (會計法) for allegedly stealing assets from the company.

"She cannot clearly explain every suspicious transaction that we discovered, so we believe it is necessary to keep her longer," said Chiu Chih-hung (邱智宏), a Shihlin prosecutor who is investigating the case. Yeh was alleged to have stolen NT$6.3 billion from the company.

Lai Che-hsien (賴哲賢), the company's financial manager, was released on NT$1.5 million bail after being held about 24 hours for questioning at the Shihlin District Prosecutors' Office.

Investigators noted that Yeh filed a restructuring proposal in the Shihlin District Court on June 14, but that some unusual transactions made prosecutors suspicious.

Chiu said that Yeh wired more than US$10 million to one of her US bank accounts on June 15, and that she provided insufficient explanation of that transaction as well as for the company's missing funds.

"She said, `I don't know' to most of our questions," Chiu said. "That was the main reason we decided to keep her here."

Special agents from the Ministry of Justice's Bureau of Investigation launched a full-scale raid at the company as well as on the private residences of Yeh and her brothers on Thursday, but were unable to locate Yeh.

On Friday, Yeh and Lai turned themselves in, reporting to the bureau's Taipei County office at around 7am. Agents questioned them over a 17-hour period and transferred them to the Shihlin District Prosecutors' Office late at night.

As of press time yesterday, the prosecutors' investigation showed that the rest of the money was thought to be in domestic bank accounts that had not yet been located.

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