Taiwan investigates Chunghwa Telecom losses in Vietnam project

Prosecutors suspect fraud involved in US$20 million losses

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Manager at Chunghwa Telecom under investigation over Vietnam losses.

Manager at Chunghwa Telecom under investigation over Vietnam losses. (By Central News Agency)

TAIPEI (Taiwan News) - Prosecutors searched homes and offices Tuesday in a case involving losses of US$20 million (NT$614 million) by prominent telecom operator Chunghwa Telecom (中華電信) in a project in Vietnam.

In 2015, the telecom company had its Vietnamese affiliate invest in a local power generating project, the Apple Daily reported Tuesday.

However, the investment soon turned sour and the project recorded losses. The Taipei District Prosecutors Office began to suspect that fraud might be involved in the failure by Chunghwa Telecom, according to the Apple Daily.

As a result of several months of reviews, investigators raided eight homes and offices Tuesday involving those of the deputy CEO of the telecom company’s Vietnamese affiliate, a man surnamed Chang (張), reports said.

A total of four suspects, including Chang, were summoned for questioning in connection with potential breach of trust under the Securities and Exchange Act, according to the Apple Daily.