Subsidy reclaimed from group after egg storage cost violations

Taipei, June 26 (CNA) The Ministry of Agriculture said Wednesday it will recoup over 50 percent of the subsidy it provided to the National Animal Industry Foundation (NAIF) for procurement of fresh eggs under an egg import program in 2022, because the foundation failed to comply with procurement laws governing cold storage warehouse rent and freight expenses.

The Government Procurement Act does not apply to fresh eggs. However, related costs for storing imported eggs such as cold storage warehouse fees and freight expenses must comply with the procurement law.

Failure to comply means the subsidy awarded to the foundation cannot surpass half of total expenses, according to the law, the ministry said in a statement.

The ministry said it approved NT$14.6 million (US$447,733) in subsidies to the NAIF, which is responsible for the regulation of domestic production and sales of livestock and poultry products, to cover warehousing and transportation fees during the 2022 adjustment plan for production and marketing of eggs.

However, an investigation launched in March by the ministry found the foundation's expenses for storing imported eggs did not adhere to required procedures, leading the ministry to reclaim over 50 percent of the subsidy.

The actual reimbursed expenses was around NT$7.23 million. Therefore, the ministry will recover about NT$3.69 million from the foundation, more than 50 percent of the actual reimbursed amount, according to the ministry.