Farglory Chao Teng-hsiung tenders resignation as chairman
Taiwan News, Staff Writer
2014-08-06 10:34 AM

Farglory Land Development Co. (5522) announced early Wednesday that its chairman Chao Teng-hsiung has tendered his resignation and his eldest son, Frank Chao, who takes the helm after his father was taken into custody in early June for a Taoyuan land development scandal, will continue to serve as acting chairman.

According to a statement issued by Farglory, Chao's resignation will become effective August 14. The company will convene a board meeting on August 13 to elect a new chairman to ensure a smooth transfer of duties.

The real estate tycoon Chao was accused of bribing a former Taoyuan County deputy magistrate Yeh Shih-wen to obtain government contracts regarding a land development project in the county. Both Chao and Yeh were indicted on corruption charges in July for their involvement in the bribery case, with Chao released on bail of NT$30 million.

Taoyuan County land development is booming as more than one trillion of NT dollars are expected to be spent in Taoyuan Aerotropolis development and to spur regional industrial as well as business growth.

According to his confession, Chao claimed that the money was "forced to give out to Yeh" as an entry ticket for construction and development in Taoyuan and stressed that he could not have won the deal if he offended Yeh at that time. Chao said he will spend his life defending his credibility, noting that he would rather die than lose his integrity.

Farglory Group owns more than 8,000 employees in the country. The company’s shares fell slightly by 0.24 percent to NT$40.85 on the resignation news in the middle of Wednesday's trading session.

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