CHEM officials receive jail terms for armored vehicle procurement fraud
Taipei, Oct. 20 (CNA) Taiwan Taichung District Court sentenced the chairman, president, vice president and other officials from Chung-Hsin Electric and Machinery Manufacturing Corp. (CHEM), a contractor for the domestically produced CM-32 "Clouded Leopard" armored vehicle project, to jail terms ranging from six months to six and a half years Wednesday.
Taichung District Court sentenced CHEM Chairman Chiang Yi-fu (江義福) to six years and six months for breaking the Securities and Exchange Act and Criminal Code of the Republic of China.
Company President Kuo Hui-chuan (郭慧娟) received two years, while Vice President Lee Liang-chang (李良章) was sentenced to four years and two months, and Manager Pan Shih-yuan (潘世遠) received two years.
In addition, illegal income of nearly NT$2.1 billion (US$75 million) earned by the company was confiscated, the court said, adding that the case which goes back to a procurement project from 2015, can be appealed.
CHEM won a Ministry of National Defense (MND) bid in 2012 to provide chassis for an eight-wheeled armored vehicle, officially called the Taiwan Infantry Fighting Vehicle (TIFV), but was later found to have violated the contract by importing sub-quality materials from China.
As a result, many of the 326 chassis provided to the MND frequently leaked oil and the vehicles malfunctioned once every two days on average, according to the Ministry of Justice in 2015.
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