SinoPac Holdings chairman Ho Shou-chuan and two others have been detained for the company's questionable loan of 5 billion NTD to replenish his personal investment, among other financial irregularities. Following his detention, the company called a press conference, announcing that his position will be filled by deputy chairman Chiu Cheng-hsiung and the company has had emergency response measures in place to protect clients' rights.
After a night of interrogation, the Taipei District Court has ordered the provisional detention of SinoPac Financial chairman Ho Shou-chuan, wife of Sun Power Development and Construction Company's President, Liao Yi-min, and Yuen Foong Yu land development department manager Chang Chin-pang. Deputy chairman Chiu Cheng-hsiung of SinoPac Financial called a press conference later on the afternoon of June 18.
==CHIU CHENG-HSIUNG Deputy Chairman, SinoPac Financial==
We will continue to strengthen our internal control and legal practices. All risk management mechanisms will be enforced, and all financial holding subsidiaries will be monitored and managed.
After SinoPac Financial's questionable loans of NT$5 billion had been reported, the prosecutors discovered that the company had been transferring its assets to its overseas shell companies through questionable loans. As the amendment of the Code of Criminal Procedure has allowed defense attorneys to examine the case files and make copies, additional measures had to be taken to prevent the investigation from being disclosed. The detention proceeding was therefore delayed until the night of June 17, meaning that Ho Shou-chuan had been held in custody for three days before the provisional detention was ordered.
==JOSEPH LIN Chairman, Judicial Reform Foundation==
You have to be extremely careful about ordering a provisional detention before conviction. It may be constituted as restricting one's freedom, but it has to be done. If a suspect put on a provisional detention is later cleared of all charges or found not guilty, criminal compensation may be applied. Spending one night in custody means you get to persuade the judges not to order a provisional detention that could last for four months.
It is expected that the provisional detention will be followed by Ho's dismissal from his position. However, the Financial Supervisory Commission has not responded yet. The FSC will have an internal meeting to discuss how to handle this matter as soon as June 19.
Translated By LUKE CHIANG
記者 黃立偉 彭耀祖 台北報導
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