Liu Tai-ying (劉泰英), once known as the KMT's unofficial treasurer and a close friend of former president Lee Teng-hui (李登輝), was still in the custody of Taipei prosecutors at press time last night after being summoned for questioning yesterday morning over the financial scandal surrounding the Zanadau Development Corp (新瑞都).
"We hope to get some fresh information and explanations from Liu regarding questions that arose during the investigation," said Taipei District Prosecutors' Office spokesman Chen Hung-ta (
Chen said that Liu, chairman of China Development Financial Holding Corp, had been summoned after evidence of unusual transactions was found in his bank accounts.
While Taipei Chief Prosecutor Lin Jinn-tsun (林錦村) began interviewing Liu yesterday morning, a team of special agents from the Ministry of Justice's Bureau of Investigation, armed with search warrants, raided Liu's office and residence.
This is the first interview between prosecutors and Liu since former Zanadau Development Corp vice president Su Hui-chen (蘇惠珍), now the company's majority shareholder, accused him on Sept. 16 of accepting a kickback, paid by her, of NT$1.06 billion. She said that this was paid in return for his promise to help her secure financing from banks, a promise which she said he did not honor.
Kickbacks are legal in Taiwan except when offered or accepted by government officials. Liu was a special adviser to the president at the time.
"To date, we have not found sufficient evidence that Liu was involved in corruption, but will be looking for such evidence during our interviews with him," Chen said. "We suspect that Liu both accepted Su's kickback and reneged on his promise, which amounts to breach of trust."
The prosecutors' office declined to comment when asked whether additional evidence had been found during the raids at Liu's office and residence.
Liu is a former close friend and ally of Lee, although the two are thought to have been less close since Lee pledged his support to the DPP government. Liu is widely thought to have exercised ultimate control over the KMT's assets for many years during Lee's chairmanship of the party.
Liu's lawyer, Chung Yung-sheng (
In addition, Lin summoned Benny Hu (胡定吾), former general-manager of the China Development Financial Holding Corp and current chairman of the China Development Industrial Asset Management Corp, at approximately 6pm yesterday.
"Hu has worked with Liu for a long time in the same company. We hope that he can help answer some questions as well," Chen said, adding that Hu was being treated as a possible witness. He was released at around 10.30pm last night.
Lawson Corp president Lee Ming-che (李明哲) who, according to Su, was a close friend of Liu, and former Taiwan Fertilizer Corp chairman Hsieh Sheng-fu (謝生富) have been detained by prosecutors on suspicion of corruption and breach of trust since Oct. 17. They have not been charged.
Su alleges that Lee shared the NT$1.06 billion kickback with Liu and that Hsieh purchased Zanadau stock with Taiwan Fertilizer Corp's money and Lee's assistance and then accepted kickbacks from Su via Lee.
Prosecutors say they are treating Su as a witness in the case.
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