Stocks chair denies graft

Taiwan Stock Exchange Corp Chairman Wu Nai-jen (吳乃仁) yesterday denied an opposition lawmaker's allegation that he had illegally helped a local online gaming software provider go public two years ago.

Wu made the remarks after independent legislator Chiu Yi (邱毅) accused him of money laundering and graft from Gamania Digital Entertainment Co (遊戲橘子), which Chiu said offered Wu a trip to a casino at Cheju Island in South Korea in October 2002.

Financial Supervisory Commission Chairman Kong Jaw-sheng (龔照勝) was also facing a similar charge. Chiu said Gamania allegedly provided around NT$100 million for Wu and Kong to try their luck at the casino.

Accused

Chiu also accused Kong of purchasing Gamania shares at only one third of market prices.

Chiu made the accusations against both Wu and Kong at a legislative finance committee meeting on Thursday.

He didn't offer any evidence to support his allegations.

Kong, on Thursday, and Wu yesterday denied the lawmaker's accusations, saying that they did not engage in any gambling activities on the Korean resort island.

Kong also stressed that he bought the Gamania stocks on the open financial market.

"Most of the report and Chiu's charges are untrue," Wu said yesterday at a press briefing at the Taiwan Stock Exchange.

Wu plans to file lawsuits against Chiu, he added.

Wu said he, Kong and Ilan County chief Liu Shou-cheng (劉守成) went to Cheju island of South Korea in 2002 only to watch the World Soccer Cup games.

Offers

While there, they bumped into Gamania officials but did not accept any offers from the company, he said.

Gamania, which relies on distributing Korea online games to make profits, started trading its shares at the Gretai Securities Market, or the nation's over-the-counter market, in May of 2002.

The company said on Thursday the review process for the company's initial public offering was crystal clear and transparent at the time, dismissing Chiu's allegation of any "black box" procedure involved.

Shares

The company said Chiu's accusation made no sense at all, as the company debuted its shares in May, but Kong and Wu's Korean trip was in October of that year.

Gamania is competing head-on with Soft-World International Corp (智冠科技) and Wayi International Digital Entertainment Co (華義國際) in Taiwan where industry players are facing growing market saturation and trying to come up with their own competitive products to secure market share.

Shares of the online game provider fell for the fourth straight trading sessions yesterday to NT$14.7.