TAIPEI: Prosecutors in Taiwan yesterday revealed details concerning indictments brought over the past few days against 46 individuals, including employees of the Port of Kaohsiung, Taiwan's largest port, and eight shipping lines.

The arrests of the port officials, which followed a year-long investigation, were connected to charges of falsifying records for personal gain and breaching contracts, said Chung Chung-hsiao, spokesman for the Kaohsiung Prosecutor's office.

Among those indicted over the past few days are the director general of the Kaohsiung Harbour Bureau and other officials. They are accused of paying shipping companies about NT$300 million ($9.12 million) since 2007 to inflate shipping volumes through the port, said Chung.

The scheme apparently was hatched to inflate shipping data with the effect on enhancing the port's global standing.

In the late 1990s Kaohsiung was the world's third busiest port. However its standing has been slipping since then. Kaohsiung now stands at number 8 in global rankings. A significant factor in the declining stature has been the expansion of nearby ports on the Chinese mainland, which have been swept along by the tide of massive economic expansion.

"We don't know their motivation, but we do know they were exaggerating," Chung said. "We have to do what we have to do. So much money and so many faked documents - it's pretty big."

The shipping lines, which include Taiwan's No 2 shipper Yang Ming Marine, were charged with accepting money to inflate shipping records, Chung said. A Yang Ming official said the firm had hired a lawyer but could not comment on the case.

The investigation was initiated following a citizen complaint more than a year ago.

Port officials declined to comment on the case.

Reuters

(HK Edition 06/19/2009 page2)