DTI doing “due diligence” on prospective investment by Taiwanese “fugitive,” Palace says

August 24, 2017

The Department of Trade and Industry (DTI) has been conducting a background check on a potential foreign investor, who was allegedly a fugitive in Taiwan, a Palace official said on Thursday.

In a press briefing, Presidential Spokesperson Ernesto Abella said the DTI has ordered the Philippine Economic Zone Authority to conduct  "due diligence" on Xianglu Dragon Group of You Hao Chen, who was indicted by the Taipei District Court on January 14, 2014 for fraud, unlawful embezzlement and other serious economic crimes.

The company was reportedly planning to develop a 3,000-hectare economic zone in Pangasinan and an 85-storey building in Roxas Boulevard, Manila.

"Right now, they are doing their due diligence. Specifically, PEZA is I think under the DTI...they have been I think being given the directive to make sure that --- to study, to investigate --- not investigate but to check into the background of the said potential investor," Abella said.

On reports Chen was scheduling a meeting with President Rodrigo Duterte, Abella said, "that should be dependent on the recommendation of his economic managers."

The Taiwan Economic and Cultural Office, Taiwan's de-facto embassy in Manila, has filed a formal request to the Philippine government for the arrest of Chen, who was reportedly using a Chinese passport, and to deport him to Taiwan to face justice as soon as possible.

Chen allegedly fled to China in 2001 after supposedly incurring $2.3 billion worth of debts in Taiwan.

The Philippines has no formal bilateral ties with Taiwan, which is considered by China as its province. Celerina Monte/DMS