Chung Lien Oil Case: Prosecutors Indict Four Companies — Chung Lien, Fwusow, Formosa Oilseed and Taisun — Along With 15 Individuals
Taiwan's edible oil safety has come under scrutiny again, with the Taichung District Prosecutors Office indicting several listed food companies over oil products from Chung Lien that contained carcinogens above legal limits — bad news for both the industry and consumers.
- Chung Lien Oil & Fat Co. was found to have supplied oil products with excessive levels of carcinogens to Formosa Oilseed Processing, Fwusow Industry and Taisun Enterprise, which then sold them on to downstream food manufacturers.
- The Taichung District Prosecutors Office indicted four companies and 15 individuals — 19 defendants in total — on charges including violations of the Act Governing Food Safety and Sanitation.
- Prosecutors are also seeking the confiscation of about NT$880 million in illegal proceeds.
- The companies' delay in reporting the problem was cited as one of the grounds for indictment, suggesting the tainted oil may have been circulating on the market for some time.
Outlook: With the case now heading to court, the food stocks involved are likely to face short-term pressure, and regulators may tighten inspections across the edible oil supply chain.