The CEO of a company accused of supplying government agencies with counterfeit U.S.-made COVID-19 rapid test kits actually manufactured in China was detained and held incommunicado Tuesday on fraud charges, according to the Ministry of Justice Investigation Bureau.

According to Hsinchu prosecutors, Safeway OA Supply Co., Ltd., led by CEO Huang Nan-ching (???), stuck “Made in the USA” labeling on 2.37 million rapid test kits actually manufactured by a factory in Hangzhou, China, which were then supplied to local governments across Taiwan.

Following complaints from users that the COVID-19 rapid test kits were substandard and did not display a control line, prosecutors on Monday raided five locations — including the office and warehouse of Safeway and its owner Chu Shou-hui’s (???) residence — seizing 450,000 rapid test kits and NT$12 million (US$400,000) in cash.

In a statement Tuesday, the bureau said prosecutors gained approval from the Hsinchu District Court to detain Huang on charges of breaching the Regulations for Governing the Management of Medical Devices and fraud following an overnight investigation.

Meanwhile, Chu and an assistant surnamed Lee (?) have been released on bail of NT$1 million and NT$100,000, respectively.

In the wake of the raids, local authorities have confiscated some batches of the problematic Chinese COVID-19 rapid test kits, with Kaohsiung City government making it clear that it will take legal action against Safeway for compensation.

Source: Focus Taiwan News Channel