TAIPEI: Prosecutors yesterday disclosed details of indictments on charges, including breach of trust, against three key players in major Taiwan corporations. A spokesmen for the Taiwan Supreme Court Prosecutors Office told reporters yesterday the department will seek lengthy jail terms.

The executives, from China Metal Products Co and Prince Housing & Development Corp, Taiwanese builders, were indicted last week and set free the following day on July 31, after posting bail totalling NT$82 million ($2.5 million).

China Metal Chairman Ho Ming-hsien was released on NT$70 million bail. Charges against him include embezzlement and breach of trust, company spokeswoman Ho Pei-fun said in a briefing in Taipei yesterday. Prince Chairman Chuang Nan-tien and President Chen Ren-chin paid NT$10 million and NT$2 million bail and were charged with breach of trust and forgery, company lawyer Chen Yung-chang said in Taipei.

Executives at China Metal and Prince Housing are suspected of buying non-performing loans of the Splendor Hotel in Taichung, central Taiwan and re-selling them at inflated prices, Lee Chung-wen, a spokeswoman for the Prosecutors Office said by telephone yesterday. Prosecutors earlier probed executives at Chong Hong Construction Co for reselling land to a developer at inflated prices.

"The charges are pretty serious," said Wey Jangjyh, an analyst at Fubon Securities Co. "I would suggest investors stay clear from stocks with legal problems." Wey has a neutral rating on Taiwan's real estate and construction sector.

Prosecutors are seeking a 24-year jail term for China Metal Chairman Ho, company spokeswoman Ho said yesterday. Executives at the two companies couldn't be reached for comment.

Both companies were raided by authorities on June 3, and 21. Employees were summoned for questioning. China Metal denied at the time that it was engaged in wrongdoing.

"The company is deeply sorry to hear about the charges," Wu Chian-ying, a spokesman for Tainan-based Prince Housing said in a press briefing in Taipei yesterday. "The case won't impact the company's operation."

Chong Hong spokesman Chen Mao-qing said last week that Chairman Lee Wen-tsao and his wife weren't available for comment.

Bloomberg

(HK Edition 08/04/2009 page2)