Chinese fake soap factory case in court

THE two Chinese nationals arrested on Friday in connection with the production and sale of counterfeit MAQ washing powder will not be allowed to leave the district of Windhoek without the permission of an investigating officer.

This was one of the two bail conditions set during their first appearance in the Windhoek Magistrate’s Court yesterday.The two accused, Chen Bin and He Jian Guo, were arrested in ‘Chinatown’ in Windhoek’s northern industrial area on Friday on charges of fraud and contravention of patent rights and copyrights.The Namibian Police discovered that they were allegedly producing a fake 250g version of the MAQ brand of detergent, and trading it on the market. The case was postponed to November 10.The second bail condition is that they have to hand over their passports to the State. Their lawyer, Boris Isaacks, confirmed that this had already been done.Chen, the owner of the factory, was released on bail of N$15 000 on Saturday, while his co-accused, Guo, to whom he was supplying a significant amount of the detergent for distribution, was released on bail of N$10 000. It was stated in yesterday’s report that both were the owners of the factory.The Namibian was told by their translator yesterday that Chen was the owner and Guo a distributor/retailer.But Inspector Rector Sandema of the Namibian Police’s Commercial Crime Unit said while the exact business relationship between the two had not been fully established, ‘from the looks of things they could be related’.What has been established, however, is the value of the goods confiscated from the makeshift factory, which Sandema confirmed amounted to between N$500 000 and N$700 000. The value excludes the detergent confiscated from Guo’s trading operation, and from other retailers still under investigation.In addition, the production of another brand of washing powder by the name of ‘QWA’, which used the same powder that was being used for the counterfeit MAQ detergent, is also being looked into.At court yesterday, The Namibian spoke to Rong Qing Xu, Secretary General of the Chinese Chamber of Commerce in Namibia – an association of Chinese-owned businesses which seeks to ‘teach the Chinese to respect each other, Namibians, and the law’ and to foster sound business relations in the country.Xu also provided translation services for the two.He told The Namibian that he had advised Chen and Guo ‘to fully co-operate with the Namibian Police, and to provide them with all the necessary information requested of them.’’They can’t hide because they have already been caught,’ he said, expressing disappointment in the activities of the two.’We (Chinese businesspeople) are here not only to make money, but also to make friends and build relations,’ he said, calling on the public not to judge the entire Chinese community based on the actions of a few. ‘We’re also against that (illegal activity) and know that it is not good. That’s why I always use my lawyer!’ he said, adding that the Chamber’s activities include advising its members to go through the legal routes of registering their businesses, and ensuring that all necessary routes are consulted and followed.Xu said that the factory owner, Chen, had said he’d bought the detergent factory from someone else about five months ago, and that he had been unaware that the product he was making was a fake.’From my understanding, he may have been cheated by somebody,’ Xu said, adding that ‘they have to go and apologise to that company. Otherwise, if they (Bliss Chemicals which manufactures the real MAQ) sue, how will they pay?’Chen appeared distraught throughout his day at court yesterday, trying his utmost to avoid each snap of the camera, and keeping to himself for the most part.Inspector Sandema confirmed that no more arrests had been made yet, but said the Police were ‘still following up leads’ as the investigation continues.nangula@namibian.com.na