Prosecutors said yesterday that they had barred former Sino Swearingen Aircraft Corp (SSAC) chairman Kuo Ching-chiang (郭清江) from leaving the county while an investigation into an embezzlement case is in progress.
SSAC is a joint venture between Taiwan's Sino Aerospace Investment Corp -- of which the Ministry of Economic Affairs is a trustee -- and Swearingen Aircraft Corp of San Antonio, Texas.
Since its establishment in 1996, Taiwan has invested about US$600 million in SSAC, but the company only won regulatory approval to build business aircraft in late 2005 and so far has only delivered one plane.
The Supreme Prosecutors Office said yesterday that prosecutors from its Special Investigation Panel were trying to determine if irregularities in how the firm was managed could have led to the substantial deficit it now faces.
The office said prosecutors had interviewed Kuo and ministry officials and that the ministry had handed documents about management of the company.
Prosecutors said Kuo was barred from leaving the country soon after being questioned.
As Kuo frequently travels between Taiwan and the US, the ban should facilitate the investigation, the office said.
It said the investigation was launched last month, but would not comment on whether any solid evidence of embezzlement or corruption had been found.
Kuo took over as SSAC chairman and chief executive officer in September 2005.
He offered his resignation last April.
SSAC hoped to transfer part of the design and manufacturing work back to Taiwan to help the country develop its aeronautical sector, but the company instead offered foreign companies contracts for manufacturing work, which went against the goals announced when the company was established.
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