Taiwan's Formosa Plastics chief quits amid bribery scandal
President among more than two dozen employees suspected of taking kickbacks
PUBLISHED : Tuesday, 28 July, 2015, 4:22am
UPDATED : Tuesday, 28 July, 2015, 4:22am
Agence France-Presse in Taipei
Taiwan's Formosa conglomerate said 25 employees were suspected of taking payments from a supplier. Photo: Reuters
Formosa Plastics Group, a leading Taiwanese manufacturing conglomerate, said on Monday one of its top executives had resigned over a years-long bribery scandal involving a supplier.
The conglomerate said in a statement that 25 employees were suspected of taking payments from a supplier, including Lin Chen-jung, president of Formosa Plastics Corp.
"After an initial investigation, some of the employees involved admitted offences against company rules," Formosa Plastics Group said in the statement.
"Lin offered to resign as the president and a board member on Friday, and the company has approved."
The statement did not say whether Lin had admitted any guilt.
Taipei-based Apple Daily said a whistle-blower had spurred management to launch an inquiry into the scandal, which the newspaper said was the worst of its kind since the company's founding more than 60 years ago.
Apple Daily said more people could yet be implicated in the collective kickback scandal, which reportedly began seven years ago.
Local media said prosecutors had looked into the case, but the group did not comment when contacted by AFP.
The group, whose businesses include oil refineries, power plants and hospitals, as well as the manufacturing of memory chips, has more than 108,000 staff on its payroll, with combined revenues totalling NT$2.46 trillion (HK$611 billion) in 2013.
