Corrective measures have been implemented among banks at the request of the FSC to avoid such cases of loan fraud in the future

Taiwan News 
Date: 2018/04/10
By: Sophia Yang, Taiwan News, Staff Writer

TAIPEI (Taiwan News) – Fifty-four managers of seven state banks involved in the Ching-

Fu syndicated loan fraud scandal have been punished, according to the Financial Supervisory Commission (FSC) on Tuesday.

Seven other banks involved in the major defense scandal have yet to take punitive measures against the managers at stake.

In August 2017, an anonymous whistle-blower alerted the navy that Ching Fu Shipbuilding Co. (慶富造船) was falsifying its progress reports for a NT$35.8 billion (US$1.18 billion) project, contracted from the Ministry of National Defense, to construct six minesweeper ships. The company defaulted on a NT$20.5 billion (US$679 million) syndicated loan from state banks and incurred NT$14.897 billion in losses.

Banks that took part in the Ching Fu syndicated loan include the First Bank, Land Bank of Taiwan, Bank of Kaohsiung, Bank of Taiwan, Taiwan Business Bank, Taiwan Cooperative Bank, Hua Nan Bank, Mega International Commercial Bank, Chang Hwa Bank, the Export-Import Bank of ROC, Shin Kong Bank, Yuanta Commercial Bank, Taichung Commercial Bank, and Ta Chong Bank, which has been merged into the Yuanta Commercial Bank since January 1, 2018.    [FULL  STORY]