Prosecutors probe alleged corruption in CPC's 3rd LNG Terminal project

Taipei, Dec. 3 (CNA) Criminal investigators searched 11 sites and questioned 13 people on Tuesday over allegations state-run oil company CPC Corp., Taiwan inflated construction budgets for its Third LNG Terminal project in Taoyuan, the Taipei District Prosecutors Office said Wednesday.

The office said it directed the Agency Against Corruption's Northern Investigation Office and the Investigation Bureau's Northern Mobile Team to conduct the searches after receiving an anonymous tip on Nov. 11.

The searches were executed with court-approved warrants at locations linked to CPC, CECI Engineering Consultants Inc., and the residences and offices of individuals connected to the case, the prosecutors said.

Shih Yi-fang (施義芳), a former lawmaker as well as former chairman of CECI, and other individuals involved in procurement activities were among those summoned for questioning.

Shih and four others were transferred to prosecutors for further questioning and were released without bail early Wednesday, with three reclassified as potential defendants.

According to a local media report, an audio recording submitted by the anonymous whistleblower implied that the budget for new outer breakwater construction work at CPC's Guantang LNG Terminal, part of the Third LNG Terminal project, rose from NT$9.4 billion (US$300 million) to NT$25.3 billion after at least four price increases in a short period.

The report said the recording suggested CPC took the lead in increasing the budget and that the contract was awarded to a company under what was described as the "most advantageous bid."

CPC said some of its employees were interviewed as witnesses and that matters related to the searches required clarification through judicial procedures.

The company said it would cooperate with the judicial authorities' ongoing investigation.