Former Central Trust head summoned for questioning

Prosecutors from the Public Prosecutors' Office of the Taiwan High Court (高檢署) yesterday questioned former Central Trust of China (中央信託局) president and incumbent Central Reinsurance Corp (中央再保險公司) chief Lin Ching-hsien (林青賢) on the corruption case related to the Jin-Wen Group (景文集團), local media reported yesterday.

Along with Lin, former vice president of the Central Trust of China, Hung Chien-tzu (洪建次), was also questioned.

Prosecutors kept a low profile yesterday, a move that reflects the possibility that more high-level government officials -- both from the former KMT government and the current DPP government -- are involved in the Jin-Wen scandal, media reports speculated yesterday.

A Taipei District Court ruled on March 28 that Chang Cheng-hung (張正宏), a former assistant manager in the bank's trust department and now a branch manager of the state-run Central Trust of China, be held for allegedly granting an illegal loan to the Jin-Wen Group.

According to the prosecutors, the bank granted Chang Wan-li (張萬利), former head of the Jin-Wen Group, a NT$640 million loan for a construction site owned by the Jin-Wen Group in Hsinchuang (新莊) City, Taipei County.

The construction site is in fact valued below NT$300 million.

Under suspicion that bank officials conspired with Chang Wan-li in granting the loan, prosecutors and investigators raided the bank on Tuesday and took 15 officials in for questioning.

Although the other 14 were released after questioning, prosecutors believed that Central Trust's Chang might be involved since he did not have the authority to approve such a huge loan.

"Loans of this size are supposed to be approved by both the president and the vice president of the bank, as well as the board of directors," prosecutors said yesterday.

Since the loan was officially approved by the bank's former chairman of the board of directors Chang Yu-hui (張有惠) -- a minister without portfolio -- prosecutors hinted yesterday that Chang Yu-hui was also a suspect in the scandal.

According to the prosecutors, soon after Chang Yu-hui and his bank approved the loan, his son Chang Chieh-kai (張介鍇) bought a luxury mansion built by the Jin-Wen Group.

The prosecutors, however, could not find any records of money going from Chang Chieh-kai's account to the Jin-Wen Group for the mansion, showing that the building might possibly have been a free "gift" from the group to the bank chairman's son.

The prosecutors added yesterday that several government officials at the Ministry of Education, as well as some lawmakers, are also involved in the case.

"At least five officials at the education ministry are involved in the scandal," prosecutors revealed yesterday.

"In fact, almost 20 Ministry of Education officials are now living in those very expensive mansions built by the Jin-Wen Group," the prosecutors added.