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Taiwan Water Corp. ex-chairman indicted on corruption charges

2014/09/01 19:54:01

Taipei, Sept. 1 (CNA) Hsu Hsiang-kun, former chairman of Taiwan Water Corp. (TWC), was indicted Monday on charges of corruption, which involved allegedly accepting a bribe of NT$5 million (US$167,482) to help secure a project contract.

According to the indictment by the Taichung District Prosecutors Office, Kintech Technology Co. of Taichung won the bid for a NT$900 million contract in April 2002 to install advanced water purification equipment at two TWC water treatment plants in the central city.

It said the equipment at the Kaotan and Weng-Gongyuan water treatment plants, however, failed a quality test in November 2003.

After negotiations, TWC and Kintech signed a supplementary contract in November 2004, requiring Kintech to fix the problems by the end of the year, the indictment stated. In 2005, Kintech's water purification installations again failed a quality test, which prompted TWC to send a legal attest letter to Kintech for terminating the contract and taking over the project, according to the indictment.

It said that in July 2005, a senior executive of Kintech allegedly paid NT$5 million in cash to Hsu, who had been appointed TWC chairman, in exchange for a promise to help the company gain another chance to complete the project.

When Hsu took office as TWC chairman in September that year, he directed his subordinates to negotiate with Kintech and help settle the disputes associated with the contract, the indictment said.

After several rounds of negotiations, TWC agreed in April 2006 to give Kintech one year to correct the problems, and the water purification installations eventually passed the quality test, according to the indictment.

(By Sophia Chen and Evelyn Kao)
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