Home » News » Warehouse Board Fraud Exposed: Unveiling Unqualified Flame Resistance and Inspection Scams by Mirror Media

Warehouse Board Fraud Exposed: Unveiling Unqualified Flame Resistance and Inspection Scams by Mirror Media

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<a href="https://people.howstuffworks.com/is-taiwan-country.htm" title="Is Taiwan a Country? It Depends on Which Criteria You Use">Taiwan</a> Warehouse Board industry Rocked by <a href="https://www.intertek.com/building/fire-testing/" title="Fire Resistance Testing Services - Intertek">Flame Resistance Certification Scandal</a>

Technology Development Center, Taiwan Construction research Institute, Keliwen">


Taiwan Warehouse Board Industry Rocked by Flame Resistance Certification Scandal

Published: 2025-03-05

A major scandal is unfolding in Taiwan’s warehouse board industry, casting a shadow over safety standards and regulatory oversight. The controversy erupted following a devastating fire at a Taichung Quanlian warehouse on December 19 of last year, which resulted in nine fatalities. The warehouse claimed to use “first-level flame-resistant warehouse boards,” but the rapid spread of the fire raised immediate concerns about the veracity of these claims. The incident has triggered an investigation exposing potential fraud and deception within the industry.

Sources familiar with the matter allege that Quanlian’s engineering contractor, Xinling Company, subcontracted the warehouse board installation project to Juli Company.however, Juli Company reportedly lacked the capability to produce first-level flame-resistant warehouse boards, leading them to allegedly purchase the boards from Zhongsheng Company.

The plot thickened as it was revealed that Zhongsheng Company, while capable of producing the boards, allegedly did not possess the necessary qualified certificate. To circumvent this hurdle, Zhongsheng Company purportedly turned to Lijian Company to purchase a first-level flame-resistant certificate, raising serious questions about the integrity of the certification process.

Industry Insider Exposes Widespread Fraud

The allegations of widespread fraud have been further substantiated by industry insiders. Johnson, a veteran of the Kubian industry, claims that the fraudulent practices are rampant and well-known within the sector.

The entire industry is making fraud, and everyone knows it well! The reason for this chaos is mainly as there are loopholes in the laws.
Johnson, Kubian Industry Veteran

Johnson points to the lack of effective oversight by the Construction Office of the Ministry of the Interior, the supervisory authority for Kubian boards.According to Johnson, the Construction Office primarily focuses on “production certificates” and neglects the crucial aspect of quality control.

Loopholes in Certification Process Exploited

in Taiwan, only the Plastic Industry Technology Development Center and the Taiwan Construction Research Institute under the ministry of Economic Affairs are authorized to conduct certifications for flame-resistant warehouse boards. Manufacturers submit their models to these laboratories, and upon triumphant testing, the Construction Department issues a 5-year production certificate, which can be extended for an additional 1 to 2 years.

The quanlian warehouse fire took nine lives, and the industry exposed the inside story of the fraudulent building materials.
The Quanlian warehouse fire took nine lives, and the industry exposed the inside story of the fraudulent building materials. (Provided by Taichung Fire Department)

A critical loophole exists in the system. There is no guarantee that the flame-resistant quality of every warehouse board produced over the subsequent 5 to 7 years will match the initial sample used for inspection. This lack of ongoing monitoring and quality control creates an chance for unscrupulous manufacturers to substitute substandard materials after obtaining certification.

Quanlian Warehouse claims to use first-class fire-resistant warehouse boards, but the scene was burned to pieces after the fire.
Quanlian Warehouse claims to use first-class fire-resistant warehouse boards, but the scene was burned to pieces after the fire. (Provided by Taichung Fire Department)

The financial incentives for such fraud are meaningful. Fire-resistant warehouse boards can cost more than twice as much as standard boards, creating a lucrative opportunity for manufacturers to falsely claim first-class flame resistance while using cheaper, inferior materials.

Adding to the problem, some manufacturers allegedly resort to purchasing certifications outright, with prices ranging from 50 to 100 yuan per square meter. For larger projects, the cost of buying a certificate can exceed one million yuan, making it a worthwhile investment for those seeking to maximize profits.

Rumors circulate within the industry about a “chemical genius” in central Taiwan who can create model boards guaranteed to pass inspection for a fee of 300,000 yuan, further highlighting the extent of the fraudulent practices.

undercover Investigation Exposes Unqualified Product

To verify the allegations of fraud, an undercover investigation was conducted. Johnson, posing as someone assisting with the design of a large project, contacted Keliwen company, a warehouse board manufacturer, expressing interest in ordering their first-level flame-resistant warehouse boards.

This magazine will be able to provide the company's first-level flame-resistant warehouse board for flame-resistant inspection,but the test results are unqualified.
This magazine will be able to provide the company’s first-level flame-resistant warehouse board for flame-resistant inspection, but the test results are unqualified.

Afterward, a reporter, posing as a staff member from a design company, obtained a model of Keliwen’s first-level flame-resistant warehouse board and submitted it to the Plastic Industry Technology development Center for inspection. The entire process was documented.

The results of the inspection revealed that the Keliwen warehouse board failed to meet the required flame resistance standards. While the painted steel plate on the surface passed the “surface flame resistance test,” the underlying material failed the overall flame resistance test.According to the report,all five test bodies must pass the flame resistance test for the product to be considered compliant. However, only one test body of the Keliwen board met the standard.

This indicates that the company’s warehouse board does not possess adequate flame resistance and may not even meet the third-level standard.

The 'test' of the library board that can be stable failed the test and was confirmed to be insufficient in flame resistance.
The “test” of the library board that can be stable failed the test and was confirmed to be insufficient in flame resistance.

Experts from the Plastic Center emphasized the importance of flame-resistant building materials in saving lives during a fire. Even a delay of 10 seconds to several minutes can provide crucial time for escape. Additionally, genuine first-level flame-resistant materials produce less smoke, further enhancing the chances of survival.

The fact that the warehouse board is often entirely burned after a fire, leaving no evidence of its

Taiwan’s warehouse Board Scandal: A Deep Dive into Flame Retardant Fraud

Nine lives were lost in a single warehouse fire.Could this tragedy have been prevented? The answer, shockingly, points to a systemic failure within Taiwan’s building materials industry.

Interviewer: Dr. Lee, a leading expert in materials science and fire safety regulations, thank you for joining us today. The recent scandal involving fraudulent flame-resistant warehouse boards in Taiwan has sent shockwaves through the industry. Can you shed light on the severity of this issue?

Dr. Lee: The situation in Taiwan highlights a critical vulnerability in building material certification and oversight globally. The fraudulent certification of flame-resistant warehouse boards, as exposed in this case, represents a important threat to public safety. The fact that manufacturers are prioritizing profit over the lives of building occupants is deeply concerning. This scandal underscores the urgent need for stricter regulations and robust oversight mechanisms to prevent future tragedies. The loss of nine lives in the Taichung warehouse fire tragically illustrates the consequences of this negligence.

Interviewer: The investigation revealed several companies allegedly involved in fraudulent practices, including the procurement of fake certifications. What are the common methods used to circumvent safety standards in the building materials industry?

Dr. Lee: Unfortunately,fraudulent practices within the construction materials sector are not unique to Taiwan. Common tactics include:

Falsifying test results: Submitting fabricated data to obtain certifications without performing legitimate testing.

Substituting materials: Using cheaper, non-compliant materials in the final product after securing certification based on a compliant sample.

Purchasing fraudulent certificates: Directly buying certifications without undergoing the required testing process.

Exploiting loopholes: Taking advantage of regulatory gaps or ambiguities to avoid compliance.

Bribery and collusion: This involves bribing officials to turn a blind eye to fraudulent practices and often involves collusion between manufacturers and certifying bodies.

These methods often target certifications for key safety features, such as fire resistance, structural integrity, and chemical composition which is crucial when dealing with things like flame retardant materials for warehouses and other high-risk locations.

Interviewer: the article mentions a significant financial incentive for manufacturers to engage in these fraudulent practices. Can you elaborate on the economic pressures driving this behavior?

Dr. Lee: The economic incentives behind this type of fraud are considerable. Flame-resistant materials, especially those meeting high safety standards, often command significantly higher prices than their standard counterparts. This price difference creates a highly lucrative opportunity for unscrupulous manufacturers to cut corners, substitute inferior materials, and inflate profits illegitimately. For large-scale projects, the savings gained by using substandard materials can easily outweigh the risk of detection, especially when regulatory oversight is weak. The financial gains significantly influence the decision-making process around material selection, prioritizing profit maximization over human safety. Such as,a falsely certified first-level flame retardant warehouse board could be sold at twice the price of standard board,leading to monumental illicit profits.

Interviewer: The investigation also highlights loopholes in the certification process itself. What improvements are needed to enhance the integrity and effectiveness of these systems?

Dr. Lee: Strengthening the regulatory framework is crucial. Improvements include:

Enhanced testing protocols: Implementing more rigorous testing methodologies, including random audits and unannounced inspections, will deter fraudulent practices. These inspections should include independent analysis,beyond that provided by the manufacturer.

Increased transparency: Improving public access to test results and certification data, making it easier to identify inconsistencies and potential fraud.

Strengthened penalties: Imposing stricter penalties for manufacturers and certifying bodies found guilty of fraud, leading to a greater deterrent and better long-term impact.

Improved traceability: Establishing a robust system for tracking materials throughout the entire supply chain, making it easier to trace the origin of materials and identify fraudulent products which can definitely help consumers determine if their goods have been tampered with or are indeed fire resistant.

Continuous monitoring: The implementation of post-certification ongoing monitoring and quality control measures, to maintain accountability and ensure that products consistently meet and maintain the required standards.

Interviewer: What crucial lessons can other countries learn from this scandal in Taiwan to prevent similar incidents in the future?

Dr. Lee: This case serves as a stark warning to nations worldwide. Governments and regulatory bodies must prioritize public safety by enhancing regulatory oversight, ensuring the integrity of certification processes, and imposing robust penalties for fraud. Investing in robust inspection programs and strengthening collaborations between regulatory agencies and industry stakeholders can make a significant difference in ensuring compliance and preventing such tragedies. Strengthening consumer education regarding material properties and safety protocols is also critical to better safeguard consumer rights.

interviewer: Thank you, Dr. Lee, for providing such insightful commentary on this critical issue. Your expertise has illuminated the complexities and the serious implications of the Taiwan warehouse board scandal, offering invaluable insights for preventing similar tragedies worldwide.

Closing Statement: The tragic loss of life in the Taichung warehouse fire underscores the urgent need for reform within Taiwan’s building materials sector. This scandal necessitates a systemic overhaul of certification procedures and regulatory oversight to prioritize public safety over profit. Let’s discuss this issue in the comments below and share your thoughts on social media using #TaiwanWarehouseScandal.

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