Such funds might have been well-intentioned at the outset. They turned into a major source of corruption however. Shady practices such as favoritism, kickbacks or other illegal manipulations were common in the old days and the quality of the public buildings, parks or even roads was often compromised. Under the KMT administration the funds became political chips for under-the-table bargaining between the premier's office and KMT legislators. They became a source of political strife among legislators and a means of concealing dubious government practices, whether political favors were satisfied or not.
Chen's decision to remove the fund once and for all is courageous. Nevertheless, it will certainly invite bitter criticism and even political revenge from a large number of legislators, since a fat chunk of their incomes, which ran to billions of NT dollars per year, has been plugged.
On top of that, factors such as the falling stock market and the evaporation of most-favored bank loans, which KMT legislators used to enjoy from government-controlled banks, are all placing greater pressure on many legislators' finances. As one source close to the Legislative Yuan has indicated, quite a few legislators are in deep financial trouble. They will have to force the new government to release the local construction funds soon. Otherwise, quite a number of them won't be able to survive until next year's election.
It is this grim and desperate situation that is helping the KMT to lure the disillusioned legislators back into its legislative caucus. Needing the KMT in order to weather their financial difficulties and to raise campaign funds for next year, they are forced to rally behind the caucus and legislators. In the meantime, they are anticipating an early legislative election, to be held alongside the presidential election, once the recall act is passed and the DPP is bound to call for Cabinet resignations in order to dissolve the Legislative Yuan.
Several of the KMT legislators are confident the party machine will provide them with ample financial resources to help them defend their seats. As soon as the political fog has passed therefore, what's left is the issue of money! All those lofty ideas, such as defending government credibility or guarding long-term economic development and business inter-ests, are just a load of rubbish.
Yet, the real issue of releasing the local construction funds is testing Chen's political wisdom right now. Should he release the funds, all his reform efforts will have gone down the drain in no time. Perhaps he would rather choose to confront the vital question of the recall with a genuine fighting spirit and call the KMT-led opposition camp's bluff.
Derek Lee is a senior journalist.
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