The Kaohsiung District Court yesterday impounded the headquarters of Ching Fu Group (慶富集團) at the request of one of the firm’s lenders amid allegations of a subsidiary’s financial mismanagement and involvement in a fraud scandal related to a navy contract.
The court took provisional legal ownership of the first six floors of the 10-story building on Fuxing Fourth Road and the firm’s partial land ownership of the site, the court said.
The action was taken to protect the rights of those to whom the firm owes money, the court said, adding that despite the impound order, the company’s employees could still freely go to work.
Photo: Taipei Times
Ching Fu Group spokesman Chi Ching-lung (紀景朧) said the firm remains operational and employees showed up for work yesterday.
Asked about the court’s action, Chi declined to comment, saying that he has limited knowledge of the case.
Taipei-based First Commercial Bank last month filed a civil lawsuit with the court, demanding provisional attachment of Ching Fu Shipbuilding Co (慶富造船) assets after the subsidiary allegedly defrauded nine domestic lenders led by First Commercial Bank into providing a NT$20.5 billion (US$682.9 million) syndicated loan using bogus documents.
The shipbuilder said the loan was for capital needed to build six minesweepers for the navy as part of a NT$34.9 billion contract it secured from the Ministry of National Defense in October 2014.
The Kaohsiung District Prosecutors’ Office, which has been investigating the fraud allegations since August, suspects the shipbuilder used bogus documents to falsify capital increases required under the terms of the loan.
Separately yesterday, the Coast Guard Administration (CGA) said that it would terminate a contract with Ching Fu Shipbuilding and demand about NT$1.5 billion in compensation if the company is unable to meet a deadline for delivery of the next of 28 search-and-rescue boats it won the contract to build on May 30, 2013.
CGA Minister Lee Chung-wei (李仲威) said the contract would be terminated if the shipbuilder is unable to deliver the 14th vessel by Sunday.
Ching Fu Shipbuilding has completed and delivered 13 boats, and eight more are being built.
The original deadline for delivery of the 14th vessel was Nov. 10, but the shipbuilder asked for a 16-day extension, Lee said.
Lee, who expressed doubt that the deadline would be met, said that “once the time is up, we will proceed according to the terms of the contract and terminate.”
The coast guard would ask for NT$1.527 billion in compensation should it terminate the contract, Lee said, adding that it would take three to four more years to complete the project should it need to find a new contractor.
CHANGING LANDSCAPE: Many of the part-time programs for educators were no longer needed, as many teachers obtain a graduate degree before joining the workforce, experts said Taiwanese universities this year canceled 86 programs, Ministry of Education data showed, with educators attributing the closures to the nation’s low birthrate as well as shifting trends. Fifty-three of the shuttered programs were part-time postgraduate degree programs, about 62 percent of the total, the most in the past five years, the data showed. National Taiwan Normal University (NTNU) discontinued the most part-time master’s programs, at 16: chemistry, life science, earth science, physics, fine arts, music, special education, health promotion and health education, educational psychology and counseling, education, design, Chinese as a second language, library and information sciences, mechatronics engineering, history, physical education
The High Prosecutors’ Office yesterday withdrew an appeal against the acquittal of a former bank manager 22 years after his death, marking Taiwan’s first instance of prosecutors rendering posthumous justice to a wrongfully convicted defendant. Chu Ching-en (諸慶恩) — formerly a manager at the Taipei branch of BNP Paribas — was in 1999 accused by Weng Mao-chung (翁茂鍾), then-president of Chia Her Industrial Co, of forging a request for a fixed deposit of US$10 million by I-Hwa Industrial Co, a subsidiary of Chia Her, which was used as collateral. Chu was ruled not guilty in the first trial, but was found guilty
Taiwan-based publisher Li Yanhe (李延賀) has been sentenced to three years in prison, fined 50,000 yuan (US$6,890) in personal assets and deprived political rights for one year for “inciting secession” in China, China's Taiwan Affairs Office spokesman Chen Binhua (陳斌華) said today. The Shanghai First Intermediate People’s Court announced the verdict on Feb. 17, Chen said. The trial was conducted lawfully, and in an open and fair manner, he said, adding that the verdict has since come into legal effect. The defendant reportedly admitted guilt and would appeal within the statutory appeal period, he said, adding that the defendant and his family have
DEADLOCK: As the commission is unable to forum a quorum to review license renewal applications, the channel operators are not at fault and can air past their license date The National Communications Commission (NCC) yesterday said that the Public Television Service (PTS) and 36 other television and radio broadcasters could continue airing, despite the commission’s inability to meet a quorum to review their license renewal applications. The licenses of PTS and the other channels are set to expire between this month and June. The National Communications Commission Organization Act (國家通訊傳播委員會組織法) stipulates that the commission must meet the mandated quorum of four to hold a valid meeting. The seven-member commission currently has only three commissioners. “We have informed the channel operators of the progress we have made in reviewing their license renewal applications, and
RSS