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Wang Lin-tai detained for violations of securities law

Wang Lin-i, general manager of Chia Hsin Food and Synthetic Fiber Co, is escorted by officials from the Bureau of Investigation for questioning yesterday over the scandal surrounding the company's parent Rebar Asia Pacific Group. PHOTO: GEORGE TSORNG, TAIPEI TIMES

Wang Lin-tai (王令台), the acting chairman of Asia Pacific Broadband Telecom (亞太固網), was detained yesterday for embezzlement in the Rebar Asia Pacific Group (力霸亞太企業集團) case.

"Wang Lin-tai was detained for allegedly committing crimes that could lead to a minimum seven-year sentence, and also to prevent him from conspiring with others to make their statements about the case agree," Taipei District Court spokesman Liu Shou-sung (劉壽嵩) said.

Wang is charged with violating the Securities Transaction Law (證券交易法) and with breach of trust, Liu added.

Two officials of Asia Pacific Broadband Telecom, Hsu Cheng-hsiung (徐正雄) and Chen Ming-hai (陳明海), were also detained yesterday, Liu said.

Chen Wen-tung (陳文棟), manager of The Chinese Bank (中華銀行), was then detained last night over suspected violations of the Banking Act (銀行法).

Lin Jinn-tsun (林錦村), spokesman for the Taipei Prosecutors' Office said Wang told investigators that his father, Rebar chairman Wang You-theng (王又曾), was responsible for Asia Pacific Broadband Telecom's finances and that he didn't know anything about the alleged embezzlement.

Nevertheless, as one of highest officials in the company, Wang Lin-tai should have known about the company's finances, Lin said.

Prosecutors said that six years ago, Asia Pacific Broadband Telecom issued around NT$60 billion (US$1.83 billion) in bonds. About NT$10.5 billion of the sum was paid to the government for telecommunications access and licenses, while about NT$20 billion was spent on the company's telecommunications infrastructure.

Prosecutors believe the remainder -- around NT$29.5 billion -- was embezzled through fake business and stock transactions with companies within the Rebar Group.

Asia Pacific Broadband Telecom Co said yesterday it would hold a board meeting soon to recommend a new chairman to fill the vacancy left by Wang Lin-tai.

The firm's managing directors will recommend a new chairman from within the company or appoint a representative to replace Wang, it said.

Only six of the company's managing director's seats are now filled, compared with the original 11, after three of Wang clan were detained or fled overseas.

Taiwan Railway Administration (台鐵) and the Central Investment Holding Co (中央投資), which is an investment arm of the Chinese Nationalist Party (KMT), hold the biggest stakes in the board, followed by Rebar-affiliated Idee Department Store (衣蝶百貨) and The Chinese Bank (中華銀行).

The telco has stressed that its operations are on track.

It also said it is fully cooperating with the government in a financial audit.

In related news, the Ministry of Foreign Affairs announced yesterday that the Solomon Islands, a Taiwanese ally that granted the title of honorary consul-general to Wang Yuo-theng's wife Wang Chin She-ying (王金世英), had revoked her title.

Saint Kitts and Nevis, another ally that bestowed the same title upon Wang Chin Shyh-ying, said it was ready to revoke the honorary post as well, ministry spokesman David Wang (王建業).

Wang Chin Shyh-ying did not hold a passport from Saint Kitts and Nevis, he said, adding that Taiwan's missions asked host countries to add the couple to their watch lists.

Additional reporting by Jewel Huang
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