TAIPEI (Taiwan News) — The Ministry of Economic Affairs on Sunday defended Taiwan Sugar for not reporting irregularities it detected in soybean oil supplied by Central Union Oil, saying the state-owned company had no legal obligation to notify authorities under existing regulations.
A statement from the Taichung District Court explaining its decision to grant prosecutors' request to detain Central Union Oil Plant Manager Chen Ming-jung (陳明榮) revealed that Taiwan Sugar had identified potential irregularities in the company's soybean oil extraction process in May.
Following the disclosure, KMT Legislator Chen Ching-hui (陳菁徽) criticized Taiwan Sugar and the central government for failing to disclose the company's knowledge of the issue sooner, per Tai Sounds. She argued Taiwan Sugar should have reported its findings to authorities.
Taiwan Sugar defended its handling of the matter, emphasizing that the soybean oil it purchased from Central Union Oil was never shipped, per CNA. The company also said the product involved was crude soybean oil rather than refined edible oil, meaning it was not legally required to report the irregularities.
The economics ministry said Taiwan Sugar detected the issue because it applies edible oil standards when inspecting crude soybean oil, adding that companies are not required to report irregularities found in raw ingredients, per Tai Sounds. The ministry said that because the shipment never entered Taiwan Sugar's possession, Central Union Oil was responsible for reporting the irregularities to the Taichung City Government.
Health and Welfare Minister Shih Chung-liang (石崇良) said Taiwan Sugar's case differed from that of Namchow Oil and Fat, which also notified its supplier after detecting irregularities, per Liberty Times. He noted that Namchow was fined for failing to report problems found in edible oil.
Deputy Health Minister Lin Ching-yi (林靜儀) questioned why the Taichung City Government had not independently inspected Central Union Oil's facility without prompting from the central government, per UDN. The city government previously said inspections of the extraction plant fell under the producer's responsibility.
Meanwhile, opposition politicians turned their attention to Taiwan Sugar's decision not to report its findings. Taichung Mayor Lu Shiow-yen (盧秀燕) said Taiwan Sugar, as a state-owned enterprise, should have informed authorities after detecting the irregularities, calling on central government officials to take responsibility for the scandal, per Liberty Times.
TPP Legislator Chen Chao-tzu (陳昭姿) argued that Taiwan Sugar should have acted sooner to prevent tainted products from reaching consumers, per UDN. She also criticized the government for fining Namchow while not taking similar action against Taiwan Sugar.
Kaohsiung City Councilor Pai Chiao-yin (白喬茵) said Taiwan Sugar should be held to a higher standard because the government owns about 96% of the company, per China Times. She argued the company's handling of the case set a poor example by prioritizing its own supply over the safety of the broader food supply chain, undermining Taiwan's food safety system.
