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Eslite chief Wu grilled over deposit

"Chao Yu-chu ought to feel ashamed if he really did embezzle the money [that I donated to the association]."

Robert Wu, Eslite bookstores chairman

Eslite Books chairman Robert Wu (吳清友) was summoned again yesterday for questioning by prosecutors eager to learn if there was any connection between his deposit of a large sum of money into the bank account of President Chen Shui-bian's (陳水扁) in-laws and the decision to award Eslite the contract for a hospital bookstore.

As investigators sift through the bank records of Chen's son in-law, Chao Chien-ming (趙建銘), and his family, prosecutors discovered that Chao's father Chao Yu-chu (趙玉柱) received NT$10 million (US$308,166) from Wu in 2003.

Taipei District Prosecutors' Office spokesman Lin Pang-liang (林邦樑) yesterday said: "Wu insisted to the prosecutors that the money was a `donation' to the Taiwan Table Tennis Association which he deposited into the head of the association Chao Yu-chu's bank account."

Wu was later released.

He told reporters that: "Chao Yu-chu ought to feel ashamed if he really did embezzle the money [that I donated to the association]."

Prosecutors however suspect the money may be related to Eslite Books winning a bid to open a bookstore at National Taiwan University Hospital in 2003.

Lin said prosecutors had come to the hospital on Tuesday to seize documents as part of the probe.

In 2002, a number of companies entered the bidding to open a store at the hospital's new store complex.

While three companies including Dachan Greatwall Group, Uni-President Corp and Medlight Corp obtained a priority to negotiate the opening of a store with the hospital, Elite Books surprisingly won the bidding in 2003.

Because Wu's company won the bidding only one month after he had deposited NT$10 million into Chao Yu-chu's bank account, and because Chao Chien-ming was a doctor at the hospital, prosecutors were trying to learn whether the money was a bribe aimed at helping Wu win the bid.

Wu yesterday said the opening of the bookstore in the hospital was legal and above board.

Chao Yu-chu was released on NT$2 million bail last week, but he has been prohibited from leaving the country.

Lin had said Chao Yu-chu had failed to explain why the money was still in his account.

Meanwhile, Taipei District Court yesterday rejected Chao Chien-ming's latest application for bail. Chao is being detained on suspicion of insider trading involving shares in Taiwan Development Corp (TDC).
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