Former Ting Hsin executive released on NT$100 million bail
CNA
2015-01-29
Wei Ying-chung leaves after reporting to a police station in Taipei as required under the bail terms, Jan. 28. (Photo/Keye Chang)
Wei Ying-chung, the disgraced former chairman of Ting Hsin Oil and Fat Industrial, was released on NT$100 million (US$3.2 million) bail on Wednesday.
The Changhua District Court said it granted the release because prosecutors have completed their investigation and Wei's three-month detention period was about to expire.
In laying down bail terms, the court restricted Wei from changing his place of residence and required that Wei report to his local police station every day before noon to ensure that he would not try to flee.
Wei, who was indicted on multiple fraud charges related to an edible oil scandal on Oct. 30 and detained on Oct. 31, left the court at 2:30am, one hour after the bail ruling was made. He talked briefly to the media before returning to Taipei, where he resides.
Wei, one of four brothers who founded the Ting Hsin International Group, chaired the three group subsidiaries — Ting Hsin Oil and Fat, Wei Chuan Foods and Cheng I Food — that were at the heart of the food safety scandals that erupted in October last year.
Ting Hsin Oil and Fat and Cheng I Food were found to be using ingredients not fit for human consumption, such as oils used in animal feeds, in the cooking oils they sold to food processors and to consumers under the Wei Chuan brand.
Wei's lawyer said in the bail hearing that the Ting Hsin Group had demonstrated its sincerity in making amends for its actions by repaying NT$6.5 billion (US$207.8 million) outstanding on a syndicated loan and remitting NT$3 billion (US$95.5 million) for a food safety fund.
He also tried to allay the judge's suspicions about Ting Hsin group's recent withdrawal of NT$300 million (US$9.58 million) in cash, saying the funds were prepared to pay for the release of Ting Hsin employees should they be granted bail.
The lawyer assured the judges that Wei and other defendants in the case would not flee after being released.
Wei testified that he was suffering from chronic diseases and that he needed to be released from detention to take care of issues related to Ting Hsin Oil and Fat employees ahead of the Lunar New Year, which falls on Feb. 19.
The court also ordered that three other defendants — former Ting Hsin Oil and Fat president Chang Mei-fang, the company's former acting chairman Chen Mao-chia, and Yang Chen-yi, who owns the Vietnamese trading company Dai Hanh Phuc — be released on NT$5 million bail (US$160,000).
Chang and Chen left the court after paying the bail amount, but Yang was returned to detention because he could not come up with the necessary funds.
Prosecutors indicted the four last October and requested a 30-year prison term for Wei, a 25-year prison term for Chang and 18-year sentences for Chen and Yang.
According to the indictment issued by the Changhua District Prosecutors Office, Ting Hsin Oil and Fat began in 2011 to purchase substandard fats and oils intended for the manufacture of animal feed from Vietnam as a way to save costs.
The deal was arranged by Chang, who advised Yang to fraudulently declare to customs agents in Taiwan that the imports were fit for human consumption, the investigation found.
Since Jan. 2012, the company has been using the substandard materials to produce thousands of tons of oils for cooking and baking and has sold the products to food processors around Taiwan, according to investigators.
Chang retired in 2013 and was replaced by Chen after Ting Hsin Oil and Fat was found to have been using adulterated oils to produce high-priced Wei Chuan-brand cooking oils.
Prosecutors said Ting Hsin Oil and Fat later sent officials to Vietnam to inspect the quality of the fats and oils supplied by Yang, which led to the discovery that the ingredients did not meet required standards.
Wei allegedly decided, however, to continue sourcing the substandard oils from Vietnam despite the findings, according to prosecutors.
Wei has claimed that he was unaware of the details of the purchases.
He resigned as chairman of the three Ting Hsin Group subsidiaries on Oct. 9 and was indicted three weeks later.
Prosecutors have determined that Ting Hsin Oil and Fat made more than NT$441.62 million (US$14.11 million) from its illicit practices.
