TAIPEI (Taiwan News) — Former  Kaohsiung Deputy Mayor Chen Chi-yu (陳啓昱) is still being detained in Tainan and under investigation for financial crimes.

After over four months in detention, Chen was granted bail at NT$6 million (US$197,000) by the Tainan District Court on Sept. 22. However, Tainan Prosecutors appealed to the Taiwan High Court and Chen’s bail decision was reversed on Thursday, with his detention to be extended for an additional two months, reported UDN.

Chen will return to detention on Sunday, and he will be held without visitation rights until late November while prosecutors continue their investigation. Chen, a former chair of the Taiwan Salt Works corporation, also known as Taiyen, was indicted in February for breaking the Securities and Exchange Act.

Chen and others are charged with conspiring to embezzle and share profits from a Green Energy investment scheme to build solar panel farms in southern Taiwan. The defendants allegedly embezzled over NT$400 million (US$13.1 million) from investors in the Taiyen Green Energy venture. 

Chen, along with Taiyan Green Energy General Manager Su Kun-huang (蘇坤煌), the chair of  Great Glow Technology Co. Su Chun-wen (蘇俊仁), are accused of manipulating the bidding and procurement process when awarding contracts, reported CNA.

At the bail hearing, prosecutors argued the defendants’ statements differed from one another, the statements of key witnesses, and objective facts of the case.

After the initial indictment, Chen reportedly sought to avoid arrest and was on the run for 20 days before he was arrested. Prosecutors cited this as evidence that Chen and his co-defendants may be at risk of flight or may attempt to tamper with evidence.

If convicted, Chen may face up to 12 years in prison. Chen Chi-yu served as the deputy mayor of Kaohsiung from 2010 to 2014 and as the chair of Taiyen Corporation from 2016 to 2021.