Taiwan jails head of ship firm contracted to build navy minesweepers
- Conviction of Ching Fu Shipbuilding chairman a blow to island’s ambitions to build more of its own military hardware
Taiwan jailed the chairman of a shipbuilder contracted to build naval vessels on Friday in a fraud case that dealt a blow to the island’s ambition to grow its domestic defence industry.
Ching Fu Shipbuilding won the contract in 2014 to build six minesweepers for NT$34.9 billion (US$1.13 billion), but the firm was later accused of illegally raising massive loans.
Company chairman Chen Ching-nan conspired to falsify documents and invoices with offshore paper companies to obtain loans from local banks, the Kaohsiung district court found.
“Ching Fu was not financially sound and was incapable of fulfilling the huge contract,” the court said in a statement.
Chen was also hit with a fine of NT$105 million, while his wife was sentenced to 18 months in prison for her role in the case. They can appeal against the ruling.
His son was put on a wanted list after he fled Taiwan.