1. Chang Wan-li's (
Chang is accused of stealing an estimated NT$200 million from the institute in tuition fees and Ministry of Education subsidies. The investigation force alleges Chang stole the funds by giving his other businesses contracts for the construction of the Jin-Wen Institute and purchasing these projects at inflated prices.
Prosecutors say they have established most of the facts about this part of the scandal and that Chang could be charged for breach of trust, misappropriation and forgery.
Chang was known to have been in financial difficulties after suffering heavy losses in an investment in Vietnam.
2. Chang's possible complicity with Ministry of Education officials.
Prosecutors suspect that Chang bribed ministry officials in return for the ministry's approval of Jin-Wen Institute development projects and subsidies for the institute to carry out construction.
The ministry has the power to decide whether or not to approve and fund the construction projects of higher education institutes, and it has been reported that the ministry's decisions are very much affected by under-the-table deals.
Prosecutors have also said that to borrow money from banks, the institute needed endorsements from the ministry.
3. Chang's possible complicity with officials of Taipei City's Education Bureau.
Jin-Wen Senior High School (景文高中) is supervised by the city's education bureau. Prosecutors suspect that the bureau has, for example, unlawfully favored the school by approving its establishment of a junior high school.
4. Chang's alleged illegal loans from state-run or private financial institutions.
Total bad debts Chang and the Jin-Wen Group have left to multiple state-run and private financial institutions amount to NT$4.5 billion.
In the case of the Central Trust of China (中央信託局), according to prosecutors, officials of the state-run bank granted Chang's Yu Chuan (昱筌) construction company a NT$640 million loan after a conspiracy that artificially inflated the value of the company's collateral -- a construction site in Hsinchuang City (
A former assistant manager of the bank has been detained in connection with the matter since March 28. Prosecutors suspect that former minister without portfolio Chang Yu-hui (張有惠), who was chairman of the board of the bank when the loan was approved, was responsible for granting the loan.
Prosecutors questioned Chang Yu-hui on March 30 and he resigned six days later, proclaiming his innocence.
5. Changes to the zoning of the land on which the Ta Hsueh Shih Hsiang (
Prosecutors found that the Jin-Wen Group built the villa community on land which the Jin-Wen Institute had originally applied to use for a campus expansion.
Prosecutors are concerned about the process by which zoning for the 12-hectare site changed from farming use, to cultural and educational use and then to residential use.
They are investigating whether several government departments collaborated with the Jin-Wen group to illegally allow the construction of the villas.
6. Whether Chang Wan-li used the Ta Hsueh Shih Hsiang villas as a means of bribing government officials.
The community has been revealed to have a high concentration of high-ranking government officials from educational and other fields.
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