TAIWAN has warned the Philippine government against doing business with Xianglu Dragon Group in China which is owned by Taiwan’s most wanted “economic criminal” You Hao Chen.
The Taipei Economic and Cultural Office (TECO) issued the warning following reports that Chen’s company has proposed a $360-billion investment to develop a 3,000-hectare mixed-use special economic zone in Pangasinan and another P12-billion to build an 85-story building along Roxas Boulevard in Manila.
“On behalf of the government of the Republic of China [Taiwan], the TECO, acting in good faith, wishes to state that Chen is an out-and-out economic criminal which has nothing to do with politics,” Teco said in a statement.
According to TECO Chen was prosecuted by the Taiwan Taipei District Prosecutors Office for
NTD800-million (about P1.32 billion) fraud, unlawful embezzlement and other serious economic crimes.
TECO said Chen has been officially indicted and wanted by the Taiwan Taipei District Court since January 14, 2014.
Chen however managed to flee to Xiamen taking with him earnings from his fraudulent operations in Taiwan where he founded Xianglu Dragon Group and invested RMB3.88 billion for PX Chemical Zone in Fujian Province of China.
Chen, Teco said, owed Taiwan government at least NTD415 million (P684.75 million) in tax arrears and defrauded Taiwanese banks and investors over NTD70 billion (P115.50 billion).
His new Group invested RMB3.88 billion for PX Chemical Zone in Fujian Province of China with the said proceeds of crimes from Taiwan.
TECO said because of poor management and a series of horrible petrochemical industrial explosions and serious pollution in the PX Chemical Zone in April, 2015, Cheng’s company has incurred a deficit reaching RMB2 billion.
It said that Chen needs to look for another place or country to do his “criminal business model” in order for him to find a financing source for him to pay his multi-billion-RMB debt and prevent bankruptcy, and the Philippines is his new target.
Teco said while Chen’s huge investment projects seem beneficial to the Philippine people and its economy at first glance, it would have negative impact on the county’s good image and foreign direct investment.
There is also a high probability that Taiwanese and even Chinese creditors, tax authorities, investors and banks may file as series of lawsuits against Chen and his investment projects in the Philippines.
TECO said it already filed a formal request to call on the relevant Philippine authorities to be vigilant and reject Chen’s highly risky investment projects.
It also urged the Bureau of Immigration to arrest Chen immediately and deport him back to Taiwan to face justice.