Financial Supervisory Commission (FSC) Chairman Ding Kung-wha (丁克華) and Vice Chairman Kuei Hsien-nung (桂先農) yesterday resigned over issues involving Mega International Commercial Bank’s (兆豐銀行) New York branch and XPEC Entertainment Inc (樂陞科技).
FSC Vice Chairman Huang Tien-mu (黃天牧) will be the commission’s acting chairman, the Executive Yuan said.
Ding on Saturday last week offered a verbal resignation to Premier Lin Chuan (林全), who rejected it, but Ding lodged another resignation on Sunday, which Lin approved, Executive Yuan spokesman Hsu Kuo-yung (徐國勇) said.
Photo: Huang Yao-cheng, Taipei Times
“To claim responsibility [for the Mega International and the XPEC case], Ding tendered his formal resignation yesterday, which was ... reported to President Tsai Ing-wen (蔡英文),” Hsu said.
Mega Bank’s New York branch was fined for breaches of US money laundering regulations, while XPEC was involved in a proposed takeover that failed, causing major losses for investors.
The president said she “respected” Lin’s decision, Hsu said.
Kuei, who was appointed alongside Ding, had to resign in accordance with the political appointments system, Hsu said.
Hsu said he did not know whether Ding resigned due to pressure from lawmakers and critics.
Ding said in the letter that he had to resign to “protect his integrity,” while Hsu supported the media’s right to question government officials.
“To prevent further effects on and misgivings about the commission, I have no other choice but to resign,” Ding said in a separate statement.
The FSC has achieved its intermediate goals that would pave the way toward bolstering regulatory standards for the nation’s financial sector, as well as placing responsibilities on companies involved in Bai Chi Gan Tou Digital Entertainment Co’s (百尺竿頭) botched bid to acquire XPEC, he said.
Hsu said there was no information on whether the resignations, along with the change of former Executive Yuan spokesman Tung Chen-yuan (童振源), was a preface to a minor Cabinet reshuffle.
When asked whether Lin lost his authority over Cabinet appointments, Hsu said, “the premier’s authority is intact and he saw to the appointments of myself and others.”
The Executive Yuan will seek suitable candidates to replace Ding and Kuei, Hsu said, adding that there are plenty of candidates in the financial sector.
The FSC would propose measures to reinforce oversight of financial institutions at a meeting called by an Executive Yuan task force to address the Mega Bank case, he said.
Meanwhile, Taiwan Stock Exchange (TWSE) chairman Shih Jun-ji (施俊吉) denied reports that he has been tapped as a candidate for the FSC chairmanship.
“I have no knowledge of a decision over the appointment,” Shih told the Taipei Times by telephone, adding that market rumors should be ignored.
“Three months into my appointment as TWSE chairman, there are still many tasks that must be completed,” Shih said.
Additional reporting by Ted Chen
FIREPOWER: On top of the torpedoes, the military would procure Kestrel II anti-tank weapons systems to replace aging license-produced M72 LAW launchers Taiwan is to receive US-made Mark 48 torpedoes and training simulators over the next three years, following delays that hampered the navy’s operational readiness, the Ministry of National Defense’s latest budget proposal showed. The navy next year would acquire four training simulator systems for the torpedoes and take receipt of 14 torpedoes in 2027 and 10 torpedoes in 2028, the ministry said in its budget for the next fiscal year. The torpedoes would almost certainly be utilized in the navy’s two upgraded Chien Lung-class submarines and the indigenously developed Hai Kun, should the attack sub successfully reach operational status. US President Donald Trump
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to start construction of its 1.4-nanometer chip manufacturing facilities at the Central Taiwan Science Park (CTSP, 中部科學園區) as early as October, the Chinese-language Liberty Times (the Taipei Times’ sister newspaper) reported yesterday, citing the park administration. TSMC acquired land for the second phase of the park’s expansion in Taichung in June. Large cement, construction and facility engineering companies in central Taiwan have reportedly been receiving bids for TSMC-related projects, the report said. Supply-chain firms estimated that the business opportunities for engineering, equipment and materials supply, and back-end packaging and testing could reach as high as
ALL QUIET: The Philippine foreign secretary told senators she would not respond to questions about whether Lin Chia-lung was in the country The Ministry of Foreign Affairs on Wednesday confirmed that a business delegation is visiting the Philippines, but declined to say whether Minister of Foreign Affairs Lin Chia-lung (林佳龍) is part of the group, as Philippine lawmakers raised questions over Lin’s reported visit. The group is being led by Deputy Minister of Agriculture Huang Chao-chin (黃昭欽), Chinese International Economic Cooperation Association (CIECA) chairman Joseph Lyu (呂桔誠) and US-Taiwan Business Council (USTBC) vice president Lotta Danielsson, the ministry said in a statement. However, sources speaking on condition of anonymity said that Lin is leading the delegation of 70 people. Filinvest New Clark City Innovation Park
DEFENSIVE EDGE: The liaison officer would work with Taiwan on drones and military applications for other civilian-developed technologies, a source said A Pentagon unit tasked with facilitating the US military’s adoption of new technology is soon to deploy officials to dozens of friendly nations, including Taiwan, the Financial Times reported yesterday. The US Department of Defense’s Defense Innovation Unit (DIU) is to send a representative to collaborate with Taiwan on drones and military applications from the semiconductor industry by the end of the year, the British daily reported, citing three sources familiar with the matter. “Drones will certainly be a focus, but they will also be looking at connecting to the broader civilian and dual-use ecosystem, including the tech sector,” one source was