Prosecutors are reportedly investigating Chinese Nationalist Party (KMT) Legislator William Tseng (曾銘宗) and former KMT legislator Lo Shu-lei (羅淑蕾) over suspected involvement in alleged financial fraud at New Site Industries (NSI).
The Chinese-language Mirror Media weekly yesterday reported that Tseng, at a meeting in his office on April 11 last year, pressured the representatives of three state-owned banks to extend the loan payment terms of NSI’s owners Yang Wen-hu (楊文虎) and his wife, Wang Ying-chih (王音之).
Tseng, a former head of the Financial Supervisory Commission (FSC) and a former general manager of Taiwan Cooperative Bank who was KMT secretary-general at the time, persuaded the banks to extend the payment terms for three months, which caused a delay in the investigation into the alleged fraud and allowed NSI’s owners to flee the country in June, the report said.
The meeting was reportedly attended by Wang, along with the general managers of Taiwan Business Bank, First Commercial Bank and Hua Nan Bank.
An indictment issued on Jan. 9 showed that the three banks provided a total of NT$13.6 billion (US$453.243 million at the current exchange rate), or 36.9 percent of the NT$38.6 billion in loans on which the company defaulted.
Tseng denied Mirror Media’s allegations, after saying in a statement on Tuesday that he was doing his job as a legislator to help the public in financial matters involving banks and small and medium-sized enterprises.
Tseng also denied that he knew Yang and Wang.
The FSC issued a statement saying that its officials had not been invited to the meeting and were not in attendance, adding: “We respect the financial institution’s right to an independent decisionmaking with regard to providing loans and credits.”
The Chinese-language Apple Daily reported that Lo had lent NT$40 million to the couple to bolster the company’s finances.
The investigation has found that the couple’s daughter, Yang Yu-cheng (楊宇晨), had transferred the deed for a luxury mansion in Nantou County, believed to be worth NT$50 million, to Lo’s adopted son.
Lo was friends with Wang and when the company started facing financial difficulties Wang borrowed money from Lo to pay the bank loans, the Apple Daily reported.
Prosecutors have subpoenaed Lo to question him in connection with the case.
The property transaction allegedly contravened the Money Laundering Control Act (洗錢防制法), prosecutors said.
Prosecutors are also investigating real-estate purchases in Taiwan and abroad by the couple and daughter, and NSI executives.
The couple are also suspected of wiring money to foreign accounts to launder the NT$38.6 billion.
DISTRUST WARRANTED? The WHO is under China’s control and has become a useless organization, while data from China cannot be trusted, a Control Yuan member said China’s demand that the novel coronavirus that emerged in Wuhan, Hubei Province, not be referred to with names like the “Wuhan pneumonia” betrays its lack of confidence in itself, Premier Su Tseng-chang (蘇貞昌) told lawmakers yesterday. Democratic Progressive Party Legislator Tsai Yi-yu (蔡易餘) asked Su, during a interpellation at the Legislative Yuan in Taipei, for his view on China’s attempts to redeem its national image in the wake of the COVID-19 pandemic. These included China’s efforts to “bleach” its image, including having WHO Director-General Tedros Adhanom Ghebreyesus publicly praise its handling of the COVID-19 outbreak, and thanking it for buying time
TOO TIRED: Investigators found that the pilot’s lack of alertness could be attributed to a lack of sleep the previous night, when he had slept with his child It was a copilot’s inappropriate operation of the aircraft and the pilot’s insufficient alertness that led to a hard landing of a China Airlines cargo flight on Dec. 13, 2018, the Taiwan Transportation Safety Board said yesterday. Flight CI6844, a Boeing 747-409 which departed from Hong Kong International Airport, landed on the pre-threshold area of runway L5 at Taiwan Taoyuan International Airport, about 21m before the head of the runway, an investigation report said. The hard landing damaged three runway lights, but none of the personnel on board sustained any injuries, the report said. When approaching the runway, the copilot failed to maintain
REPEAT OFFENDER: The man went outside for exercise on Wednesday and then left his home on Saturday with his girlfriend, officials said A New Taipei City man has been fined NT$400,000 (US$13,221) and ordered into government quarantine after breaking home quarantine for a second time on Saturday. The 25-year-old man, surnamed Chen (陳) returned to Taiwan on Sunday last week and was ordered to home quarantine until Sunday. He was seen leaving his home on a scooter with his girlfriend on Saturday, three days after he was fined NT$200,000 for going outside to exercise, police said. Chen has now been placed in a quarantine center arranged by the district office and health center of the district where he lives, police said. Police warned the public
Taipei residents who stay at hotels in the city during their 14-day mandatory quarantine period are eligible to apply for the city’s NT$7,000 subsidy, with online applications to be launched next week. Taipei Deputy Mayor Vivian Huang (黃珊珊) on Monday said Taipei residents who have COVID-19 Health Declaration and Home Quarantine Notice dated after March 19 and a quarantine hotel receipt for the dates covered by the quarantine period, would be eligible for the subsidy. The Taipei City Government on Sunday told the Central Epidemic Command Center (CECC) that so many city residents are under home quarantine that about 90 percent of