Army vice chief says no wrongdoing in Ching Fu case
Nov 15, 2017MarketComments Off on Army vice chief says no wrongdoing in Ching Fu case
First Commercial Bank has filed a criminal lawsuit against Ching Fu Shipbuilding for breach of contract. The company was under contract to build minehunters for Taiwan's navy. Ching Fu is reported to be on the brink of bankruptcy and incapable of paying the NT$3.1 billion (US$102 million) interest on its debt.
Democratic Progressive Party (DPP) Lawmaker Tseng Ming-chung gave a briefing on the case at the Legislature on Wednesday. He said the defense ministry stated in March and May that Ching Fu was still applying for third-stage funding. That's after the ministry had already granted a NT$2.4 billion (US$80 million) fund in December last year. Tseng asked the ministry if fraudulent activity may explain the disparity.
Army Vice-Chief Chen Pao-yu said in response that the defense ministry is not in charge of financial decisions. Chen said the ministry did not engage in wrongdoing. He said he is willing to step down if proven wrong.
Earlier on Tuesday, Presidential Office spokesperson Sidney Lin said no one from the current administration of the office had any contact with Ching Fu.