TAIPEI Oct 5 Taiwan prosecutors said on
Wednesday they have detained the ex-chairman of Mega Financial
Holding and a key former executive of the company,
following a government probe into the state-run group's
violation of U.S. banking regulations.
Prosecutors have taken former Mega chairman McKinney Tsai
and former chief secretary Wang Chi-pang into custody as
suspects of serious crimes, in part because they could pose "a
risk of flight and destroying evidence" related to violations at
the bank's New York branch, said Chang Chieh-chin, deputy chief
prosecutor of the Taipei District Prosecutors Office.
Tsai and Wang could be detained for up to two months, Chang
said. Tsai stepped down as chairman in March.
Current finance minister Sheu Yu-jer and ex-finance minister
Chang Sheng-ford will also be investigated by Taiwan's Control
Yuan, an investigatory agency that monitors government, the
cabinet said in a statement late on Monday.
The government ordered a probe this week to find out whether
the finance minister and other officials were responsible for
inadequate oversight in a case that led to a $180 million fine
to the bank's New York branch by U.S. authorities. The fine
related to violations of rules including lax attention to risk
exposure in Panama.
The agency is investigating whether there was "insufficient
oversight" in a case that Taiwan's President Tsai Ing-wen has
said damaged the island's reputation and created public mistrust
about supervision of the financial sector.
(Reporting by Faith Hung and Jeanny Kao; Editing by Sam Holmes)