Taiwans Chang Guann has been fined NT$50m in the tainted oil scandal

Taiwan's Chang Guann has been fined NT$50m in the tainted oil scandal

Taiwan's Chang Guann Co. - the firm accused of supplying 243 tonnes of tainted oil products to food companies - has been fined TWD50m (US$1.7m).

Earlier this week, Taiwan's Ministry of Health and the island's Food and Drug Administration said Chang Guann was processing "rancid" and "inferior" oil collected from cookers and grease traps. Chang Guann was alleged to have mixed the oil, frequently known as "gutter oil", with lard and then reselling it as edible oil. 

The authorities seized 49 tonnes of suspected "recycled" oil from Chang Guann after inspection last Thursday (4 September), the statement added.

Local reports suggest more than 1,200 companies had bought the tainted oil.

Today, a statement issued by The Greater Kaohsiung Government Department of Health confirmed the firm had been issued an TWD50m fine. Company chairman Yeh Wen-hsiang has also been referred to the Kaohsiung District Prosecutors' Office for investigation.