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Owners of yet another oil company detained in Tainan

2014/11/03 22:59:57

Taipei, Nov. 3 (CNA) Prosecutors in Tainan confirmed Monday that the owner of an oil company in Tainan and his wife have been taken into custody on suspicion of manufacturing cooking oil using substandard oil.

Prosecutors said they received court approval on Oct. 18 to detain Lu Ching-hsieh, the de-facto owner of both Beei Hae Edible Co. and Hsieh Ching Corp.

They then won the court's approval on Oct. 30 to detain Lu's wife, Lu Huang Li-hua, who is the nominal head of the two firms.

Prosecutors said Hsieh Ching had bought beef tallow and vegetable oil meant for animal feed from a trading company called Jin Hong. The couple then allegedly mixed the ingredients together and sold them as cooking oil.

Health officials in Tainan scrambled Monday to remove all oil products turned out by Beei Hae and Hsieh Ching following the revelation.

That same day, the Chiayi District Court kept Chiu Li-ping, the chief salesman at Chiu Feng Corp. who was indicted Oct. 30 for selling the company's substandard oil products.

The Chiayi court said in its decision that there are uncertainties about Chiu's involvement in the substandard oil scandal, necessitating his detainment.

The detentions come on the back of several high-profile problems at major oil production companies beginning in September.

(By Chang Jung-hsiang, Chiang Chun-liang and Maubo Chang)