Lawmakers want FSC to monitor funds

Lawmakers across party lines urged the Financial Supervisory Commis-sion (FSC) yesterday to strengthen the stock market's transparency by disclosing the cash flow of four government-run funds as well as the National Stabilization Fund.

The government uses the funds to stabilize the stock market.

At yesterday's legislative session, KMT Legislator Lo Ming-tsai (羅明財) said that the four funds are worth more than NT$2.5 trillion (US$77.15 billion) and are poised to prop up the TAIEX to over the 10,000 point level -- which he said would unfairly benefit the Democratic Progressive Party's (DPP) campaign for next year's elections.

KMT Legislator Ting Shou-chung (丁守中) accused the government of insider-trading by activating the funds to boost its candidates' electoral chances, putting the nation's investors on the backburner.

DPP Legislator Lin Wen-lang (林文郎) agreed with his pan-blue colleagues. Lin said the funds' actions in the stock market have been an index for investors to follow and therefore the funds' cash flows should be made public the same way that institutional investors have to disclose their dealings.

FSC Chairman Hu Sheng-cheng (胡勝正) told lawmakers that the commission was not responsible for overseeing the funds.

FSC Vice Chairwoman Susan Chang (張秀蓮) said revisions would have to be made to the funds' organic management regulations before the government could publicize the funds' cashflow.