TAOYUAN, Taiwan - A factory at Jhongli City yesterday was charged with committing a fraud, for allegedly selling industrial salt as edible salt to markets and shops. The owner denied all the allegations and was released on a NT$300,000 (S$12,900) bail.

Media reports revealed the previously unnamed factory to be Huan-hai Company, and the owner as Sung Ji-jung. In response to the charge, Sung contended that the factory's products are purchased from a wholesaler called Taiyen. In a statement today, Taiyen, a major salt supplier for Taiwan, said that it has never heard of Sung's company.

The Kaohsiung District Prosecutors Office accused the company of having packaged industrial salt as edible salt for the past three years, and has sold over 250,000 bags of salt with tens of millions in profit gain.

According to a media report, the wholesaler that the suspect claimed was the authentic source for his salt, was indeed owned by his daughter. The Department of Health raided the factory yesterday and confiscated all the questionable products; 2060 bags marked as refined salt, natural salt, regular salt, and 17 boxes of salt marked as healthy salt.

The Department of Health has ordered Huan-hai Company to discontinue the selling of such products and to take them off the shelves. If the Kaohsiung District Prosecutors Office finds the salt to have violated food regulation laws, the company could face a penalty up to NT$300,000.