Taiwan News
Date: 2016-06-14
By: Matthew Strong, Taiwan News, Staff Writer

TAIPEI (Taiwan News) – Former Interior Minister Liao Liou-yi and former Financial Supervisory Commission Vice Minister Lee Jih-chu were questioned by prosecutors about new accusations of questionable financial practices involving CTBC Financial Holding Co., Ltd., reports said Tuesday.

Last week, a massive series of raids and interrogations led by the Supreme Prosecutors Office Special Investigation Division (SID) uncovered allegations that US$300 million (NT$9.6 billion) in CTBC funds was diverted to private accounts, that a land deal in Taipei City’s Neihu District caused irregular losses for CTBC’s commercial bank, and that questionable transactions and possibly insider trading took place in the takeover of Taiwan Life Insurance Co., Ltd. by a CTBC affiliate.

However, Tuesday’s interviews focused on yet another aspect, last year’s NT$1.5 billion purchase by CTBC of a part of a building from the Gobo Group, reports said. The only suspect to be kept in detention last week was Gobo Chairman Chu Kuo-rung on suspicion of insider trading with Taiwan Life shares.

Prosecutors wanted to know whether the purchase by CTBC had not illegally benefited the Gobo Group, reports said.     [FULL  STORY]