KMT caucus urges more focused probe of Zanadau scandal

The KMT legislative caucus yesterday urged prosecutors probing the Zanadau scandal to focus their energy on irregular cash flows related to the ill-fated shopping mall rather than unscrupulous financiers alone.

At a news conference, caucus members insisted that the party's former treasurer Liu Tai-ying (劉泰英) is but one of the ranking officials who played a part in the intricate scheme.

KMT Legislator Lee Chuan-chia (李全教) said Liu's detention on Monday showed investigators have misplaced their attention in a bid to bust the financial scam surrounding the project.

Liu allegedly bilked key Zanadau Development Corp shareholder Su Hui-chen (蘇惠珍) of NT$1 billion by promising to help secure bank loans ten times that amount. He is also suspected of lining his own pockets when tending to KMT business affairs between 1993 and 2000.

"I challenged authorities to disclose the cash flows of all suspects involved," said Lee, who has implicated Minister of Interior Yu Cheng-hsien (余政憲) and other officials in the scandal.

He added that Liu's detention would reek of a political purge if investigators shy away from questioning Yu and his mother Yu Chen Yueh-ying (余陳月瑛), both of whom administered Kaohsiung County, the site of the multi-billion dollar venture.

Yu Chen briefly served as Zanadau president. Her departure allegedly led many other investors to pull out. She has denied any wrongdoing, as has her son.

In a related news, Su, who has been in custody since the end of December reportedly turned down a request to act as a witness in exchange for her freedom.

Dieter Wu (吳旭洲), one of Su's lawyers, said that on Jan. 14 Kao-hsiung investigators offered to release Su if she helped with their probe.

Wu said Su refused the offer on grounds the investigators wanted her to implicate innocent people.