The Taipei District Court yesterday indicted five former Hon Hai Precision Industry Co officials and a supplier to the company on special breach of trust charges under the Securities Exchange Act (證券交易法).
The five are Deng Chih-hsien (鄧志賢), a former secretary-general of a Hon Hai surface-mount technology (SMT) committee responsible for the main procurements for the company and its subsidiaries; former deputy general manager Liao Wan-cheng (廖萬城); former engineering department manager Yu Chi-an (游吉安); former senior manager Chen Chih-chuan (陳志釧) and former SMT manager Tsai Tsung-chih (蔡宗志).
Supplier Hau Shi-kung (郝旭光) was also indicted.
Deng, Liao and Hau have been in custody since January.
The prosecutors’ office said Hau allegedly urged Liao and Deng, who controlled the main purchases by the company and its subsidiaries, worth about NT$50 billion (US$166.7 million) per year, to ask for kickbacks from suppliers.
Hau allegedly served as a middleman between Liao, Deng and the suppliers, the office said.
It said Chen allegedly cooperated with Liao and Deng to place orders with suppliers who agreed to pay kickbacks.
Yu and Tsai were accused of recommending those suppliers’ products to the SMT committee.
The office said that 10 suppliers paid kickbacks.
They allegedly wired bribes to bank accounts in Hau’s name before Hau shared the money with Liao, Deng and others.
Hau allegedly took 40 percent of the kickbacks, Liao 50 percent and Deng 10 percent, the office said.
Between July 2009 and December 2011, the three allegedly received NT$162.32 million in bribes.
Chen and Tsai received kickbacks worth NT$4.71 million and NT$3.85 million respectively, the office said, adding that Yu did not take kickbacks.
The office cited Liao as denying the charges, saying the Hon Hai procurement deals he controlled involved the lowest prices in the industry.
It also said that Liao has returned NT$72.32 million.
Deng allegedly admitted he received money, but said it was in the form of “bonuses” from Hau, which were legal.
Prosecutors requested that the Taipei District Court hand Deng a heavy sentence.
Chinese-language media in Taiwan reported that Chinese authorities arrested Deng in September 2012 in Shenzhen on suspicion of accepting bribes from suppliers.
He was held in custody in China for seven months before returning to Taiwan last year.
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