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By Hollie Younger / Staff writer, with CNA
Hung Tai Life Insurance Co (宏泰人壽) is suspected of conducting an irregular public tender of two plots of land in New Taipei City’s Tamsui District (淡水) in 2019, an investigation report from the Financial Supervisory Commission (FSC) showed today.
Ten suspects were released on bail of up to NT$10 million (US$316,566) for suspected contraventions of the Securities and Exchange Act (證券交易法), after investigators found that the company sold NT$2.5 billion worth of land to another subsidiary of the Hung Tai Group (宏泰集團) in a “non-arm’s-length transaction.”
The Taipei District Prosecutors’ Office received the initial tip-off and directed the Ministry of Justice Investigation Bureau’s Northern Mobile Work Station to investigate.
Photo: CNA
Prosecutors yesterday directed the station to obtain court-approved warrants and ordered searches of 12 locations, including residences and company offices.
They then brought company chairman Lin Hung-nan (林鴻南), his ex-wife and six other suspects in for questioning, while summoning 18 witnesses, they said.
The prosecutors’ office said it has released Lin on bail of NT$10 million, with travel restrictions.
The company’s retired chairman, surnamed Lu (魯), was granted bail of NT$8 million and a manager surnamed Lee (李) was released on bail of NT$5 million, while another seven suspects, including Lin’s wife, were granted bail of NT$300,000, it said.
All suspects were released with restrictions on leaving the country, traveling by sea or changing residence, it added.
Hung Tai Life Insurance allegedly owned multiple plots of land in Danhai New Town, a development site in Tamsui, the investigation found.
The company received a warning from the FSC for poor development utilization in November 2017, which led to a fine of NT$1 million, it found.
In May 2019, the company announced it would publicly tender two plots of land in Tamsui, which were purchased for NT$2.5 billion by Taihe Construction Management Co (泰和建築經理), another subsidiary of the Hung Tai Group.
The FSC deemed the transaction as “irregular trading” that aimed to retain the land for appreciation, referring the case to prosecutors.
Hung Tai Life Insurance yesterday in a statement said that the company has always operated legally and fairly, although it vowed to respect the investigation and cooperate fully.
During the investigation stage, no facts or details have been confirmed, it said, adding that it would await the judiciary’s findings.
It meanwhile vowed to improve the company’s internal administration and risk management mechanisms to ensure smooth and continued operations for the benefit of the company and its customers.
Additional reporting by Wu Sheng-ju and Liu Yung-yun
