KMT lawmaker Chen Hsueh-sheng released on bail amid corruption probe

Taipei, Aug. 25 (CNA) Kuomintang Legislator Chen Hsueh-sheng (陳雪生) was released on NT$2 million (US$62,800) bail early Tuesday after being questioned over corruption allegations, including claiming salaries for non-existent legislative aides.

The Taipei District Prosecutors Office on Tuesday said Chen is being investigated on suspicion of violating the Anti-Corruption Act by using his official position to fraudulently obtain property, as well as accepting bribes and other improper benefits.

Prosecutors also barred Chen from leaving Taiwan by air or sea.

The moves came after prosecutors on Monday directed Ministry of Justice Investigation Bureau officers to search 35 locations, including Chen's residence, his legislative office, and the homes of related individuals.

The search targets also included the offices of several shipping companies, including King Hsing Marine Co., Kin Xia Marine Co., Yuan Xin Shipping Agency Co., and Peace Shipping Agency Ltd.

As part of the operation, a total of 27 people, including Chen, were brought in for questioning.

Chen's younger brother, Chen Hsueh-huai (陳雪懷), who serves as his office director, was released on NT$100,000 bail, while several other relatives and staff members were granted bail ranging from NT$80,000 to NT$500,000.

More than 10 other people were released without further action.

The investigation stems from two separate cases that were merged under the Taipei District Prosecutors Office after one of the cases was transferred from the Kaohsiung District Prosecutors Office.

One case concerns allegations that Chen fraudulently claimed salaries for relatives posing as legislative aides.

The other involves accusations that shipping companies provided staff to work in Chen's legislative office, an arrangement that prosecutors are investigating as an improper benefit.

The investigation also encompasses allegations that Chen accepted bribes from King Hsing Marine in exchange for using his position to pressure state-owned CPC Corp., Taiwan, into terminating the company's fuel transportation contract early.

Prosecutors allege the arrangement allowed King Hsing Marine, which transported gasoline and diesel fuel between Kaohsiung and Kinmen, to avoid its contractual obligations, including the cost of providing a replacement tanker after one of its vessels broke down in 2019.

Chen has denied accepting bribes or improperly pressuring CPC.

Kaohsiung prosecutors had previously searched the company and questioned multiple suspects and witnesses while tracing financial transactions to determine whether any quid pro quo had taken place.