Four people were released on bail yesterday amid a probe into alleged corruption over a NT$110 million (US$3.8 million) contract for work at a Taiwan Railways Administration (TRA) station in Hsinchu County.
Taipei District Prosecutors’ Office officials said that 15 locations in Taipei, Hsinchu and Taoyuan were searched on Thursday and 15 people have been questioned in connection with the case.
The investigation was launched into the tender process for a contract to the reconstruction of the station in Sinfong Township (新豐), which was awarded to Kaohsiung-based Hua Sheng Engineering Construction Co.
Photo: Chen Wei-tsu, Taipei Times
Hua Sheng owner Su Cheng-ta (蘇成達), TRA Department of Electrical Engineering head Chou Tsu-te (周祖德), TRA Taipei maintenance section chief Lin Chao-cheng (林昭正) and TRA project inspector Lu Hsing-hung (盧星宏) face charges of forgery and other breaches of the Anti-Corruption Act (貪污治罪條例), prosecutors said.
The four men were released after posting bail of NT$300,000 each.
The three TRA officials are accused of colluding with Su to falsify budget documents after the project was awarded to Taoyuan-based Kuo Kung Construction Co for NT$110 million.
Work began in April 2008 to reconstruct parts of the railway station and add new facilities, prosecutors said.
Chou and Lin colluded to hand the project over to Hua Sheng, citing delays and other issues that resulted in the agreement with Kuo Kung being terminated in October 2008, prosecutors said.
The two men reopened the public tender, which was won by Hua Sheng at a reduced bid of NT$100 million, prosecutors said.
Chou and Lin allegedly colluded with Lu to produce falsified records, which led to Hua Sheng securing the contract, prosecutors said, adding that the case involves about NT$5 million in illegal profit.
Kuo Kung was riled by the termination of its work agreement and filed a lawsuit against the TRA to secure a refund and compensation on top.
The High Court ruled in the company’s favor and ordered the TRA to pay it NT$4.94 million.
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