SINGAPORE - Locally-listed Darco Water Technologies Thursday announced that two former staff of its Taiwanese subsidiary, Darco Engineering Taiwan, have been sentenced by the Taipei District Court in Taiwan.
Former general manager Chen Kuai was found guilty of criminal breach of trust and embezzlement and sentenced to six years imprisonment on Wednesday.
Nina Chiu, who worked as an administration manager, was found guilty of only embezzlement and received a jail term of three years and eight months.
"Third parties facilitators and conspirators had been dealt with separately," Darco Water said in a statement to Singapore Exchange.
In May last year, the two former staff members were formally charged by the Taipei District Prosecutors Office for alleged fraud, breach of trust and misappropriating company funds. Sixteen suppliers were charged for complicity.
Darco Water said it "is of the view that this update has no material financial impact" on the firm.
Thursday's update comes after Darco Water announced in May that the same Taiwanese unit had received additional tax assessments and penalties from the Taiwanese tax authorities, amounting to NT$42.8 million (S$1.8 million) and NT$38.5 million respectively.
The tax assessments and penalties were related to fraudulent acts committed by the previous management of the subsidiary between the financial years 2006 to 2009.