The KMT and managers of the Hsiang Shan Group (
Chiang Tao-sheng (
The KMT defended its actions by saying the party could not give financial aid directly because the investment was done through holding companies.
The station's managers said that it had used up nearly NT$1.4 billion -- which had been supplied by both the KMT and the Hsiang Shan group -- but since the beginning of this year, when the station was hit by financial difficulties, the group had to shoulder financial responsibility on its own.
Yesterday, Chiang had to give another NT$9 million to pay for the employees' salaries for last month. In total, the group has paid NT$220 million to cover the station's recent expenses, according to Chiang.
The Hsiang Shan Group accused the KMT of failing to shoulder its share of the station's financial liabilities, despite the fact that the party owns half of the company's stock.
But KMT Spokesman Wu Ching-ji (吳清基) denied that the party should take any responsibility for the station's financial crisis.
He said that, according to the law, the party cannot directly offer its financial assistance to the station because the investment was done through holding companies.
Wu added that a new company will be formed in the middle of next month and "the financial problem will be solved by then."
He added that the KMT did not mean to make the group lose money, it only asked the group to shoulder the financial aid for now.
Next month, Quilvest, a Canadian company, will become the third co-owner of the group after agreeing to pay US$20 million,
Sources in the KMT said that the core of the matter is that the party is reconsidering whether it should keep ownership of the station.
One source said that, despite the fact that it owns half of the company's stock, the party can only assign one person to the station's finance department, "and what's even worse, the Power TV station is known to favor the PFP in its coverage of political news."
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