Changhua PU Leather Factory Evaded Over NT$65.8 Million in Air Pollution Fees; Six Indicted

Central News Agency Report

(CNA reporter Cheng Wei-chen, Changhua, July 15) A PU synthetic leather factory in Changhua County is suspected of discharging toluene, a hazardous air pollutant, at concentrations exceeding legal limits, and evading air pollution fees for seven years, resulting in illicit gains exceeding NT$65.83 million. The Changhua District Prosecutors Office has concluded its investigation and indicted six individuals, including the company's负责人, for violations of the Air Pollution Control Act and other laws.

According to a press release issued today by the Taiwan Changhua District Prosecutors Office, the company primarily manufactures plastic products and uses oil-based raw materials containing volatile organic compounds (VOCs) such as toluene and methyl ethyl ketone (MEK). Under the Air Pollution Control Act, the company is obligated to truthfully report, on a quarterly basis, the amount of air pollutants emitted and the volume of raw materials used, and to pay air pollution control fees accordingly.

The Changhua District Prosecutors Office, in coordination with the Ministry of Justice Investigation Bureau's Aviation Investigation Division and the Seventh Security Police Brigade's Third Battalion of the National Police Agency, investigated the case. It was discovered that from 2018 to March 2025, the负责人, in an effort to reduce operational costs, instructed successive general managers of the management department to underreport the actual usage of VOC-containing raw materials or to omit reporting during specific periods.

The defendants used third-party proxy firms and internal employees unaware of the scheme to submit false online reports, preventing the Changhua County Environmental Protection Bureau from accurately calculating the fees owed. A re-evaluation by the competent authority revealed that the company evaded air pollution fees for seven years, gaining illicit profits totaling NT$65,831,213.

To facilitate obtaining and renewing operating and modification permits for fixed pollution sources, the负责人 instructed environmental permit application agents to submit false documentation to the Environmental Protection Bureau in 2023 and 2025. These documents falsely reclassified the actual oil-based raw materials—toluene, MEK, and solvent-based resins—as water-based materials, significantly underestimating the annual VOC emissions to circumvent total emission control regulations.

To conceal these long-term illegal activities, internal supervisors repeatedly instructed employees to move oil-based solvents and toluene out of operational areas prior to inspections by environmental or fire safety authorities, temporarily switching to water-based materials to pass inspections.

Furthermore, the prosecutors stated that Mr. Sun, an environmental engineering technician, failed to conduct proper on-site verification and issued false certification reports, severely undermining the accuracy of environmental agency reviews and the credibility of the environmental technician certification system. Testing of the exhaust pipes detected toluene emissions at 218 ppm, exceeding the legal limit of 180 ppm, posing potential health risks to nearby residents.

The prosecution alleges that the six defendants violated the Air Pollution Control Act, committed aggravated fraud for personal gain, and forged official documents over an extended period. They have been formally indicted. Given their pursuit of private profit by externalizing environmental costs over a long duration, negatively impacting Changhua's ecological environment, prosecutors have requested the court impose a four-year prison sentence on the负责人, two years and six months for three senior executives and the environmental engineer, one year and six months for the proxy agent, and an additional fine of NT$8 million. They have also requested the confiscation of illicit gains. (Edited by Chang Ming-kun) 1150715