DOMINO EFFECT:Banks filed lawsuits to seize Ching Yang Marine Enterprises’ assets after it failed to pay interest on a loan underwritten by troubled shipbuilder Ching Fu
Taipei Times
Date: Oct 28, 2017
By: Crystal Hsu and Jonathan Chin / Staff reporter, with staff writer and CNA
The Executive Yuan is to investigate the Ministry of National Defense (MND) and
Ching Fu Shipbuilding Co chairman Chen Ching-nan, right, reports at a Kaohsiung police station with his wife and son, which they have to do every day beginning yesterday. Photo: CNA
state-owned First Financial Holding Co (第一金控) for their role in a scandal revolving around navy contractor Ching Fu Shipbuilding Co (慶富), Premier William Lai (賴清德) said yesterday.
Lai, speaking to the media before entering the Legislative Yuan in Taipei for an interpellation, said he has named Vice Premier Shih Jun-ji (施俊吉) to lead the probe.
Ching Fu, which was contracted to build minesweepers for the navy, is the subject of a criminal investigation into whether it defrauded First Commercial Bank (第一銀行) and other state-run banks of NT$15.4 billion (US$508.6 million) in a syndicated loan.
First Commercial Bank, the holding company’s main subsidiary, on Wednesday said the loan is in default because the shipbuilder had breached contractual terms. [FULL STORY]
