Tue, May 09, 2000 - Page 18 News List

KMT reform group drafts plan to merge holding companies

STAFF WRITER WITH AGENCIES

A plan drafted by the KMT's Reform Committee (黨務-改造委員會) would dissolve four of party's seven major business holding companies.

The plan, which must be approved by the KMT's Central Standing Committee before taking effect, would combine four small enterprise and asset holding companies into three larger firms. The entities include Central Investment Holding Co (中央投資), Kwang Hua Investment Holding Co (光華投資) and Hua-Hsia Investment Holding Co (華夏投資).

Barring delays, the plan is expected to be fully put to paper within one month and carried out within one year of its year approval.

Liu Tseng-hua (劉曾華), executive secretary of the KMT's business management committee, said that the party's holding companies would continue to invest until legal restrictions are placed on the firms.

Liu's remarks followed earlier suggestions that the committee was likely to forbid the holding companies from making any new investments until the KMT's assets were placed in trust.

The committee also proposed that all seven holding firms over the next year gradually sell off shares in companies in which the KMT has a controlling stake. Furthermore, the party must reduce the number of board seats it holds at various firms, the committee said.

To allay fears that KMT assets will be transferred into private hands, the committee further announced it would draft up a set of rules for the disposal of the holding companies' assets. That measure would ensure transparency, the committee said.

Committee officials also said that they were considering applying the Government Procurement Law (政府採購法) to the sale of its assets.

The committee said it would hire a task force of accountants and lawyers to complete an independent investigation into the KMT's assets within three months' time. The report would pay particular attention to vacant KMT-owned land, officials said.

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