Chunghwa Telecom head accused of breach of trust over ELTA TV deal

Taipei, Aug. 20 (CNA) Chunghwa Telecom Co. Chairman Kuo Shui-yi (郭水義) was accused on Tuesday of suspected crime of special breach of trust after paying more than NT$400 million (US$12.53 million) to help ELTA TV cover the NT$500 million fee to obtain the exclusive rights to broadcast this year's Olympics in Taiwan.

ELTA secured the exclusive Olympic broadcasting rights after receiving not only around NT$400 million from Chunghwa Telecom but also NT$80 million from the Sports Administration, meaning it effectively paid only NT$20 million for the rights, Kuomintang (KMT) Taipei City Councilor Yang Chih-tou (楊植斗) told media reporters.

Yang made the revelation while lodging an official complaint against Kuo with the Taipei District Prosecutors Office.

According to Yang, before the Olympics started, ELTA also collected a total of NT$18 million in fees from Taiwan Public Television Service and Chinese Television System to broadcast the games and provide footage for domestic news channels.

Yang said he believed that Kuo acted in violation of his duties with the intention of benefiting himself or a third party, which directly caused Chunghwa Telecom to engage in unlawful transactions that were inconsistent with its business practices, resulting in the telecoms company incurring significant economic losses.

He filed the accusation against Kuo for alleged special breach of trust under the Securities and Exchange Act.