Tue, May 30, 2006 - Page 1 News List

Prosecutors grill top finance official

HOT SEAT Finance minister Joseph Lyu was questioned yesterday about a syndicated loan he organized for TDC, which is at the center of a growing insider-trading scandal

By Rich Chang  /  STAFF REPORTER , WITH AGENCIES

Investigators believe one or more medical suppliers may have tried to buy Chao's influence at the hospital in order to boost their sales.

The hospital on Thursday stripped Chao of his professional duties after he was detained.

Above board

Meanwhile, Yieh Phui, the company that had hired Chao Chien-ming's father to serve as a consultant insisted yesterday that his employment was completely legal.

Allegations that Chao Yu-chu (趙玉柱) may have used his ties to the president to benefit certain corporations or individuals in exchange for rewards have stirred public outrage.

The company, which is one of the nation's leading steel coil producers, employed the senior Chao as a consultant from May 1, 2003 to April 30 this year with a monthly salary of NT$100,000 (US$3,120), not including benefits.

According to Yieh Phui, that arrangement was typical in the industry, where companies often hire individuals with good political and commercial connections or who had served as government officials to work for them as advisors as part of their efforts to avoid "unfair treatment by others."

To avoid any further controversy, Yieh Phui chairman Lin I-sou (林義守) said he had decided to reimburse the company for Chao's salary. He said that Chao was no longer on the company's payroll.

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