MOF indicts Liu Tai-ying

The Ministry of Finance yesterday demanded China Development Financial Holding Corp (中華開發金控) -- the nation's fourth-largest financial services company by market value -- to provide a contingency plan by June 20 about its future chairmanship, after prosecutors formally charged the company's chairman, Liu Tai-ying (劉泰英), with corruption.

"An indictment doesn't constitute the dismissal of Liu while a conviction does," Vice Finance Minister Susan Chang (張秀蓮) said yesterday at a press conference.

"But China Development has to decide by June 20 whether it will replace Liu should he fail to officiate his chairmanship," Chang said.

The ministry is inclined to reject an acting-chairmanship plan if uncertainties, such as dragged-out trials or a prolonged detention, keep Liu from filling the post, Chang said.

China Development shares fell NT$0.35 to close at NT$13.0 on the TAIEX yesterday, after the Taipei prosecutor's office formally charged Liu with a total of 12 "white collar" crimes.

Liu may face a jail term of up to 16 years.

In response, China Development said it will follow the ministry's instructions.

"We will further discuss the issue at our June 13 board meeting," spokeswoman Grace Fang (方鳳山) said.

The company had previously planned to prolong Diana Chen's (陳敏薰) acting chairwomanship should the court fail to release Liu next Monday.

Liu's indictment yesterday, however, rekindled market speculation that Chen may be competing head-to-head with Benny Hu (胡定吾), currently chairman of China Development Industrial Asset Management Corp, for the vacancy left by Liu.