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We'll believe it when the KMT passes it, other legislators say

Fine print to come According Chen Chi-mai, the DPP's legislative caucus chief: * The Trust Enterprise Law would provide the "rules of the game" [ie legal structure] between the KMT and the trust company * The Political Party Law would state that no party is allowed to run a profit-making business or make investments in one

Opposition and independent legislators expressed guarded support yesterday for Vice President Lien Chan's proposal to put the KMT business empire in trust.

They questioned, however, whether the relevant laws — such as the Trust Enterprise Law and Political Party Law — would be passed before the end of this legislative session, which ends Jan. 14.

Lien, who is also the KMT's presidential candidate, on Sunday proposed separating party politics and business and having the KMT's assets entrusted to institutional managers.

“It's a step in the right direction,” said Chen Chi-mai, the DPP's legislative caucus chief. “However, we [DPP legislators] maintain that the three relevant laws — the Trust Enterprise Law, the Political Party Law and the Political Donation Law — have to be passed for the proposal to be implemented properly.”

The Trust Enterprise Law would provide the “rules of the game” [ie legal structure] between the KMT and the trust company, Chen said. The Political Party Law states that no party is allowed to run a profit-making business or make investments, he said.

“The measure [to put the KMT business empire in trust] will prevent political parties from pursuing private or personal ends with public funds,” said New Nation Alliance lawmaker Hsu Tian-tsair.

Chu Li-luan, a KMT legislator, echoed Hsu's view.

Placing KMT businesses in trust could “boost public confidence in the government” and eliminate problems caused by insider share dealing, he said.

“Even if the party only has a portion of a company's stocks, it should all be entrusted,” said Chu. “The public has been worried about insider trading and the mix of party business and government finance. To put the business into trust would boost public confidence in the government.”

However, while Lien's move may sound encouraging, it has been interpreted as little more than a political gesture that may not be implemented. Even the Trust Enterprise Law has little chance of being passed before the end of the legislative current session, Chen and Hsu said.

Lai Shyh-bao, a New Party legislator, said legislators from his party would support passage of the Trust Enterprise Law.

“But right now, it's the KMT legislators themselves who are not as supportive as they seem,” he said. “So it's more of a political gesture.”

“The promise won't be delivered prior to the presidential election,” said Chen Chi-mai. The next session doesn't begin until after the presidential election.

Even if the laws are eventually passed, Lai and Hsu agreed that an international trust company would be required for assets entrusted by political parties. Without one, the likelihood is that party and government businesses would continue to maintain links.

Liu Tai-ying, chairman of the KMT business management committee, confirmed the legislators' concerns when he was quoted as saying yesterday that the KMT's businesses would not be put in trust until August at the very earliest.

“I am all for the vice president's proposal,” Liu was quoted as saying by local newspapers. “How-ever, it has to receive the entire party's approval to be put into effect.”

Liu also said that the business management committee would be dissolved after the party had entrusted its business to professional managers.

“The future trust company will not need to bear a political burden the way China Development Bank(CDB) is now,” he was quoted as saying. The CDB is acknowledged to be the party's finance arm, even though it has only a small direct stake in the bank.

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