Nankang employee arrested for alleged kickbacks

According to various Taiwanese media sources, an assistant manager employed by Nankang Rubber Tire Corp. Ltd. has been arrested along with his wife on suspicion of receiving illegal rebates from the tyre maker’s suppliers. The arrested man has been identified by the surname ‘Chen’, and police are said to have taken custody of NT$230 million (£4.5 million) in cash plus remittances found in his home and office in Hsinchu City. The arrest was made on 16 July.

According to police, Mr. Chen was involved in natural rubber purchases for Nankang, and in 1997 he allegedly set up a foreign company and demanded suppliers pay foreign company rebates of between US$7 and $40 for each tonne of natural rubber Nankang purchased. His wife allegedly helped launder this money.
According to some new reports, Chen may also have another accomplice, surnamed Chang.

Nankang chairman Chiang Ching-Hsing reported the case to the police in mid-May. The tyre maker says Chen’s actions increased its purchasing costs. In a filing submitted to the Taipei Stock Exchange, Nankang apologised to its shareholders for not preventing the incident from happening.