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Summary of the Chang Guann Fragrant Lard Case

  • Data Source:Food and Drug Administration, Ministry of Health and Welfare
  • Created:2014-09-10
  • Last Updated:2024-04-25

On Sept 10, 2014, the Food and Drug Administration (FDA) summarized the Chang Guann fragrant lard case in the four points listed below: 

1. Severe penalties for violations: Penalties compounded with each charge 
Chang Guann Co., Ltd. has been fined NT$50 million by the Kaohsiung City Government’s Department of Health and documents related to the case have been delivered to the judicial authorities for investigation. The deposit accounts of Chang Guann’s vice-president (surname Dai) have also been frozen. 
Kuo Lieh-cheng, who is suspected to have sold recycled waste oil to food businesses, has been detained and denied visitation rights as of September 5. In addition to the seizure of Kuo Lieh-cheng’s trading books and Mercedes Benz, the funds, deposits and related assets under his name have also been seized and frozen. 
Some of the 235 vendors to whom Chang Guann provided the oil did not come forward to report their involvement, and provided inaccurate and/or incomplete information or were evasive during inspection. The Department of Health has imposed fines between NT$30,000 and NT$3 million on them pursuant to the results of administrative investigations; at present, the estimated amount of fines is at NT$24.5million. 
15 other businesses said they had not purchased any goods, could not provide any information, did not remember whether they had purchased any goods and so on, failing to comply with the Department of Health’s inspections. As of 12 p.m. on September 10, they have been referred for judicial investigation. 

2. Banning production: Cutting off source, strict management control 
As of September 5, the Kaohsiung City Government’s Department of Health has suspended the operations of Chang Guann Co., Ltd. 

3. Cutting off product flow: Tracing supply chain, taking products off shelves and recalling products 
Since midnight on September 8, stores that still carry affected products of Chuan Tung Fragrant Lard Oil or Ho Chiang Fragrant Lard Oil, or related products manufactured with the tainted oil, will be fined between NT$60,000 and NT$50 million. So far, the FDA and health bureaus of various counties and cities have mobilized 2,149 personnel to deal with this incident. The total number of food factories, night markets, stalls, dining places and retailers inspected was 8,554, but the contaminated products were not found to be in mass circulation. 

4. Complete destruction: Prohibiting outflow, supervising destruction of products 
Chang Guann provided 235 vendors with 782 tonnes for sale, while downstream vendors totaled 1,020. As of 2 p.m. on September 10, 2014, various health bureaus have found 730.4 tonnes of the problematic oil, of which 161 tonnes have been sealed, 246 tonnes have been made into products, and 250.9 tonnes have been taken off shelves and recalled. So far, 6.9 tonnes have been destroyed. Health bureaus of various counties and cities will continue to monitor the destruction process and strictly prohibit the outflow of the contaminated products. 

The FDA once against emphasizes that it will deal severely with businesses that violate the law. Should the public have queries concerning this, they can visit the FDA’s website for details on this case at http://www.fda.gov.tw/ or call the FDA information hotline 02-27878200, or various city and county governments’ Consumer Protection hotline 1950.