Prosecutors indict former Pacific Electric chairman

Taipei prosecutors yesterday indicted Tung Ching-yun (仝清筠), former chairman of Pacific Electric Wire and Cable Co (太電), on suspicion of embezzling funds from the company.

Tung and former Pacific Electric executive director Chen Kwang-lung (陳光隆) were both indicted on charges of fraud, breach of trust and violations of the business accounting law.

Prosecutors accused Tung and Chen of embezzling a total of NT$54 million (US$1.6 million) from Pacific Electric in 2002 through fake business transactions.

The pair is also suspected of embezzling NT$20 million from a Pacific Electric subsidiary in 2003, prosecutors said, adding that these actions resulted in the collapse of the company.

Tung was first indicted in December 2004, along with Mosel Vitelic Inc (茂矽) chairman Hu Hung-chiu (胡洪九), who is a former Pacific Electric chief financial officer. Hu is suspected of embezzling more than NT$17 billion from Pacific Electric, prosecutors said.

Tung is suspected of making NT$700 million through share price manipulation.

Prosecutors indicted Tung in 2004 for fraud, breach of trust and violations of the Securities and Exchange Law (證券交易法), and asked the Taipei District Court to sentence him to seven years in jail with a fine of NT$100 million. The case is pending with the Taipei District Court.

Taipei prosecutors yesterday said that Tung's new indictment would be combined with his first charge.