Nankang Tire manager probed for corruption
Taiwan News, Staff Writer
2014-07-16 07:31 PM
TAIPEI (Taiwan News) – A manager at Nankang Rubber Tire Corporation was being interrogated on suspicion of having accepted kickbacks worth NT$230 million (US$7.6 million) over a 17-year period, reports said Wednesday.

A raid by investigators reportedly turned up boxes full of cash at the Hsinchu office and home of the 64-year-old, surnamed Chen. He reportedly extorted the funds from suppliers to the tire company, one of which was apparently unwilling to pay higher charges and took the story to outsiders.

The company reportedly informed the Criminal Investigation Bureau last May, alleging that Chen’s actions had caused its costs to rise and harmed its competitiveness.

The investigation had found that Chen started in 1997 to demand payments from about a dozen suppliers of US$7 (NT$210) to US$40 (NT$1,200) per ton of natural rubber. The payments were made into Chen’s domestic account and into an overseas account held by his wife, reports said.

The husband and his 62-year-old wife, surnamed Chang, could reportedly face charges of violating the Securities and Exchange Act, money laundering and breach of trust.

During Wednesday’s raids, the investigators reportedly found boxes full of cash and also took away bank account books and information about overseas accounts in the name of a company set up to launder the funds, reports said.

The CID was still interrogating the couple by press time. It was not immediately known whether other suspects were involved in the scheme and how much money precisely had been involved in the kickbacks, though media reports spoke of more than NT$230 million.

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