Chinese Nationalist Party (KMT) lawmakers yesterday questioned the procedural legality of the state-owned National Development Fund’s (NDF) investment in Yu Chang Biologics Co (宇昌生技股份有限公司) in 2007, following the declassification of two documents relating to the investment.
In addition, legislators reiterated accusations against Democratic Progressive Party (DPP) presidential candidate Tsai Ing-wen (蔡英文), who was vice premier at the time, of privately profiting from the investment deal.
The two declassified documents were sent by then-minister without portfolio Ho Mei-yueh (何美玥) on Feb. 9, 2007, and on March 21, 2007, respectively.
Photo: CNA
The first document, which stated that the fund would invest US$20 million in a company that would work with US firm Genentech Inc under three conditions, was sent to then-premier Su Tseng-chang (蘇貞昌) and Tsai for approval, evidence the case did not follow the NDF’s general review procedures.
The files show that Tsai signed two documents on a deal with the US biotech firm Genentech, a member of the Roche Group, for the development of a new AIDS drug known as Anti-CD4, and the drug’s third-stage clinical trial.
However, the second document, which offered more details about the deal and made first mention of the company’s English name — “TaiMed Group” — were sent only to Tsai, for approval.
TaiMed was Yu Chang’s predecessor, which Tsai became chairperson of a few months after resigning as vice premier.
KMT lawmakers questioned Ho’s motives for not sending the documents under her titles of Council for Economic Planning and Development (CEPD) chairperson or NDF convener, since she had taken the two positions at the end of January 2007.
KMT caucus whip Lin Yi-shih (林益世) questioned whether Tsai had known she would become chairperson at Yu Chang before she approved the documents, since the second document proved that the idea of the company already existed.
The fund’s data show that TaiMed held a conference for potential investors on March 31, 2007, and the conference’s report listed Tsai as one of the company’s four key principals.
KMT Legislator Hsieh Kuo-liang (謝國樑) said Tsai might have broken the “revolving door” clause on officials and private sector work, since a key principal would generally become a company executive or be closely connect to its operation.
“The two documents have almost confirmed that Tsai played an authority-abusing role to enrich herself from the deal,” KMT Legislator Chiu Yi (邱毅) said.
Chiu accused Tsai of lying when she said on Friday that that she was not involved in the start-up.
Chiu asked Tsai to give a clear account of how much money the Tsai family placed in Yu Chang’s accounts.
“The account had no money until the DPP administration appropriated money from the NDF,” he said.
Council for Economic Planning and Development Minister Christina Liu (劉憶如), who submitted the declassified documents to the legislature, said the two documents did not clarify why the investment deal was managed as a “special project” approved by the Cabinet, instead of following the NDF’s general application procedures.
However, even for a special project, the case did not fully follow the complete procedures like the other projects, Liu said, adding that “the lack of an exact company name and an official proposal” were major problems in evaluating the case’s legitimacy.
The Chinese name of TaiMed first appeared in the letter sent by Tsai to the fund on July 2007, asking it to wire NT$40 million (US$1.3 million) to the “TaiMed Inc Preparatory Office” account before Sept. 3 of the same year, Liu said.
Another letter was sent on the same day saying the company’s name had been changed to Yu Chang, finally connecting TaiMed with Yu Chung, Liu said.
Additional reporting by Shih Hsiu-chuan
CALL FOR SUPPORT: President William Lai called on lawmakers across party lines to ensure the livelihood of Taiwanese and that national security is protected President William Lai (賴清德) yesterday called for bipartisan support for Taiwan’s investment in self-defense capabilities at the christening and launch of two coast guard vessels at CSBC Corp, Taiwan’s (台灣國際造船) shipyard in Kaohsiung. The Taipei (台北) is the fourth and final ship of the Chiayi-class offshore patrol vessels, and the Siraya (西拉雅) is the Coast Guard Administration’s (CGA) first-ever ocean patrol vessel, the government said. The Taipei is the fourth and final ship of the Chiayi-class offshore patrol vessels with a displacement of about 4,000 tonnes, Lai said. This ship class was ordered as a result of former president Tsai Ing-wen’s (蔡英文) 2018
UKRAINE, NVIDIA: The US leader said the subject of Russia’s war had come up ‘very strongly,’ while Jenson Huang was hoping that the conversation was good Chinese President Xi Jinping (習近平) and US President Donald Trump had differing takes following their meeting in Busan, South Korea, yesterday. Xi said that the two sides should complete follow-up work as soon as possible to deliver tangible results that would provide “peace of mind” to China, the US and the rest of the world, while Trump hailed the “great success” of the talks. The two discussed trade, including a deal to reduce tariffs slapped on China for its role in the fentanyl trade, as well as cooperation in ending the war in Ukraine, among other issues, but they did not mention
Japanese Prime Minister Sanae Takaichi yesterday lavished US President Donald Trump with praise and vows of a “golden age” of ties on his visit to Tokyo, before inking a deal with Washington aimed at securing critical minerals. Takaichi — Japan’s first female prime minister — pulled out all the stops for Trump in her opening test on the international stage and even announced that she would nominate him for a Nobel Peace Prize, the White House said. Trump has become increasingly focused on the Nobel since his return to power in January and claims to have ended several conflicts around the world,
GLOBAL PROJECT: Underseas cables ‘are the nervous system of democratic connectivity,’ which is under stress, Member of the European Parliament Rihards Kols said The government yesterday launched an initiative to promote global cooperation on improved security of undersea cables, following reported disruptions of such cables near Taiwan and around the world. The Management Initiative on International Undersea Cables aims to “bring together stakeholders, align standards, promote best practices and turn shared concerns into beneficial cooperation,” Minister of Foreign Affairs Lin Chia-lung (林佳龍) said at a seminar in Taipei. The project would be known as “RISK,” an acronym for risk mitigation, information sharing, systemic reform and knowledge building, he said at the seminar, titled “Taiwan-Europe Subsea Cable Security Cooperation Forum.” Taiwan sits at a vital junction on
RSS