China Development reins passed from Liu to Chen and Hu

Bidding farewell to Liu Tai-ying (劉泰英) and his 11-year leader-ship, China Development Finan-cial Holding Corp (中華開發金控) yesterday embraced its new chairpeople -- Diana Chen (陳敏薰) and Benny Hu (胡定吾) -- who respectively took over the helm of the nation's fourth-largest financial services institution and its subsidiary, China Development Industrial Bank (開發工銀).

At a closed-door hand-over ceremony, Liu praised Chen and Hu as being his most suitable successors, according to the company's spokeswoman, Grace Fang (方鳳山).

Liu said that Chen's broad business connections will contribute to the company's future development, while Hu's financial expertise and past experience with the company are highly regarded as beneficial to the company's future performance.

Both chairpeople vowed to do their best, although Hu may be soon be in hot water.

Su Hui-chen (蘇惠珍), a majority shareholder of Zanadau Development Corp (新瑞都), yesterday revived attacks on Hu. In April, she accused Hu of taking NT$3.6 million in kickbacks from her -- an accusation that Hu had openly rejected -- during the Zanadau financial scandal.

"I'll provide more evidence to support [any allegations of] Hu's bribe-taking involvement in the financial scandal," Su told reporters yesterday morning before attending the first court trial of the lawsuit she filed against Hu.

Su criticized Hu's new appointment at China Development as "unfair."

Hu yesterday declined to respond, Fang said.

The Chinese-language media yesterday reported that the Ministry of Finance has requested that Hu resign as chairman of Taipei Financial Center Corp (台北金融大樓公司), due to a "conflict of interest."

Taipei Financial is the builder of the Taipei 101 office tower and accompanying shopping center.

But China Development's Fang said that Hu did not receive any notification from the ministry demanding him to step down as the skyscraper's chairman, as the media has speculated.

"Hu didn't represent China Development to head the financial center corporation, and, therefore, there is no infringement on the principle of conflict of interest," Fang said.

Fang said that, on the contrary, Hu's new title at China Development will help the skyscraper attract more business.

Nevertheless, China Development is the second largest private shareholder in the 101-story skyscraper, located in Taipei's premium Hsinyi district and owns a 19.55 percent stake. The largest private shareholder China United Trust & Investment Ltd (中聯信託), with a 21.78 percent stake.

The director-general's office at the bureau of monetary affairs yesterday also declined to comment on the media report that the finance ministry has demanded Hu resign as Taipei 101 chairman.