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Head of Taiwan's Daily Air detained over fraud

2018/06/21 22:49:40

CNA file photo

Taipei, June 21 (CNA) Kuo Tzu-hsing (郭自行), chairman of Daily Air Corporation, a domestic airline, was detained and held incommunicado Thursday for allegedly filing bogus company financial statements to fraudulently obtain government funding, Taipei prosecutors said Thursday.

According to Taipei District Prosecutors Office, the company has received up to NT$100 million (about US$3.3 million) since 2005, based on false accounting that took advantage of government subsidies paid to airlines flying between Taiwan proper and outlying islands.

Prosecutors said airline staff are suspected of using fake invoices and vouchers to boost the company's losses and thereby enable it to claim more in subsidies from the government.

On Wednesday, prosecutors raided the headquarters of the company in Taipei, along with eight offices at Taitung Airport and Kaohsiung International Airport, while also interviewing Kuo and several other suspects.

A requested was later made for the detention of Kuo after prosecutors' search turned up documents that credibly suggest his involvement in the illegal actions and asked that he be held incommunicable to prevent collusion.

The requests were granted by Taipei District Court Thursday.

(By Wang Yang-yu and Shih Hsiu-chuan)