Former heads of China Steel urge their successor to avoid political interference

The leadership reshuffle at Taiwan's largest steel maker continued to grip the nation yesterday as former heads of the China Steel Corp (CSC) urged their designated successor to resist political pressure when steering the state-run company.

Lin Wen-yuan (林文淵), chairman of Taiwan Cogeneration Corp, has agreed to take the helm of the CSC amid allegations his predecessor Kuo Yen-tu's (郭炎土) stiff management style alienated DPP supporters during the recent Kaohsiung mayoral race.

Established in 1971 at the behest of then-president Chiang Ching-kuo (蔣經國), the CSC employs nearly 9,000 workers and manufactures steel, plates, wire rods, bars, pig iron, aluminum and semi-finished products.

Chao Yao-tung (趙耀東), who helped found China Steel, said Lin is faced with a formidable challenge as it is much more difficult to keep a large enterprise in sound and effective operation.

"China Steel is at a cross-roads. If not managed properly, it will head downhill," he warned, noting that the firm has lost its status as a market leader to its counterpart in South Korea.

Known for his uncompromising personality, Chao said he took pride in his ability to keep political influence away when he ran the CSC.

"I told Chiang not to interfere with my leadership if he desired my services," he said. "The late president by and large lived up to the [tacit] agreement."

The octogenarian said he once turned away a lawmaker who sought to lobby for a contract bid.

He expressed astonishment at news reports that the outgoing CSC chairman got the boot because he failed to boost the mayoral campaign for the ruling party.

"Such a thing was unheard of in the past when CSC employees were not even allowed to use office phones for private conversations," Chao said.

Ching Mao-hui (金懋暉), another retired CSC head, advised Lin not to bow to any attempts to manipulate the company's procurement decisions.

He said that, during his reign, China Steel was able to adhere to the principle, a practice he painted as his biggest contribution to the firm.

Chinese-language media speculate that Lin, a protege of President Chen Shui-bian (陳水扁), will be charged with raising funds for Chen's reelection campaign and consolidating voter support in Kaohsiung where China Steel is headquartered. KMT lawmaker and former CSC chairman, Wang Chung-yu (王鐘渝), said the company controls vast resources, which makes it an attractive target for invasions of political influence.