Taipei prosecutors said yesterday that Mosel Vitelic Inc (茂矽) Chairman Hu Hung-chiu (胡洪九) is likely involved in two separate embezzlement cases that total approximately NT$12 billion.
"We started by investigating the embezzlement case of the Pacific Electric Wire and Cable Co (太電) and then inadvertently discovered that Hu may also be involved in embezzlement case involving Mosel Vitelic Inc and its subsidiary, ProMOS Technologies Inc (茂德科技)," said Chen Hung-ta (陳宏達), spokesman of the Taipei District Prosecutors' Office.
Initially, Hu was alleged to embezzle more than NT$10 billion from the Pacific Electric Wire and Cable Co during his time as chief financial officer between for the company between 1988 and 1998.
According to Chen, while investigating the first embezzlement case, Taipei Prosecutors Chu Ying-hsiang (朱應翔) and Hsu Yung-chin (許永欽) led a raiding party from the Ministry of Justice yesterday to Hu's offices and residence, where they confiscated personal and business-related financial records.
While examining the confiscated documents, prosecutors discovered that Hu might also have stolen at least NT$2 billion of public funds from the two companies in addition to the initial embezzlement case. He also allegedly manipulated company stocks in the stock market, to the dismay of investors, who lost money, an official said.
A gag order prevented Chen from revealing all the details of the investigation toward the two alleged embezzlement cases. However, local Chinese-language newspapers reported that Chu went to Hong Kong secretly to interrogate two witnesses sometime last month and will use their testimony against Hu.
In the meantime, during the raids at Hu's offices and residence, prosecutors did not locate Hu.
As of press time yesterday, Chen said that prosecutors have not planned to summon Hu but will definitely do so whenever necessary. In addition, prosecutors have not filed a travel ban with the court to prevent Hu from leaving the country.
When called by reporters yesterday morning, Hu and said that he is not hiding and he is not planning on leaving the country.
"I will visit prosecutors in person first thing on Monday morning. I believe that the raids were a necessary measures for prosecutors to do their jobs. No big deal," Hu said.