Criminal investigators on Tuesday searched 11 sites and questioned 13 people over allegations that state-run oil company CPC Corp, Taiwan inflated the construction budget for the third liquefied natural gas (LNG) terminal project in Taoyuan, the Taipei District Prosecutors’ Office said yesterday.
The office said it directed the Agency Against Corruption’s Northern Investigation Office and the Investigation Bureau’s Northern Mobile Team to conduct the searches after receiving an anonymous tip on Nov. 11.
The searches were executed with court-approved warrants at locations linked to CPC, CECI Engineering Consultants Inc, and the residences and offices of individuals connected to the case, prosecutors said.
Photo: screen grab from the Huang Chang Construction Web site
Shih Yi-fang (施義芳), a former lawmaker as well as former chairman of CECI, and other people involved in procurement activities were among those summoned for questioning.
Shih and four others were transferred to prosecutors for further questioning and were released without bail early yesterday, with three reclassified as potential defendants.
Local media reported that an audio recording submitted by the anonymous whistle-blower implied that the budget for new outer breakwater construction work at CPC’s Guantang LNG Terminal, part of the third LNG terminal project, rose from NT$9.4 billion to NT$25.3 billion (US$299.9 million to US$807.2 million) after at least four price increases in a short period.
The report said the recording suggested that CPC took the lead in increasing the budget and that the contract was awarded to a company under what was described as the “most advantageous bid.”
CPC said some of its employees were interviewed as witnesses and that matters related to the searches required clarification through judicial procedures.
The company said it would cooperate with the ongoing investigation.
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