Liao triggers debate on merger

Liao Cheng-ching, Taoyuan County deputy commissioner and former president of TaipeiBank, talks to reporters. TAIPEI TIMES FILE PHOTO

When former president of TaipeiBank and incumbent Taoyuan County Deputy Commissioner Liao Cheng-ching (廖正井) said the Taipei City Government goofed in merging TaipeiBank (台北銀行) with Fubon Financial Holding Co (富邦金控) last Saturday, the public started to question the seemingly profitable deal that the city government has claimed and to question whether there was any insider trading in the merger.

Liao's about the merger enraged the administration of Ma Ying-jeou (馬英九). More than 10 officials representing the city government and Fubon held a news conference last Sunday to rebut Liao's criticism that TaipeiBank was merged with Fubon despite Fubon being the smaller of the two.

City spokesperson Wu Yu-sheng (吳育昇) warned Liao that the city might sue him for harming its reputation.

Liao's reminded the public of his controversial role in the city government for the past 13 years and the old grudge between Liao and the Ma administration.

"I think Liao's remark was out of his concern to his old company and colleagues."

Wang Shih-chien, a DPP Taipei City councilor

Liao a master's degree from the graduate school of Public Finance at Chengchi University.

Thanks his specialty in finance and banking, Liao, 58, was one of the few senior public officials who has served through four mayoral terms.

Liao under former Minister of the Interior Wu Po-hsiung (吳伯雄) beginning in 1986. When Wu transferred to the city government, Liao followed. Both Liao and Wu are Hakka from Taoyuan.

Wu currently a deputy chairman of the Chinese Nationalist Party (KMT).

With Huang Ta-chou (黃大洲) of the KMT heading the city government from 1990 to 1994, Liao was promoted to director of the Bureau of Finance. When President Chen Shui-bian (陳水扁) became mayor in 1994, Liao was named the city government's secretary-general despite his KMT membership. He was later transferred to head TaipeiBank in 1997.

However, Ma dismissed Liao from his job as TaipeiBank president in June 2001 after Liao won the bid to run the Public Welfare Lottery on behalf of the bank.

The dismissal was said to have resulted from a long-standing feud between Liao and former TaipeiBank CEO Jesse Ding (丁予康), now a board member of Fubon Financial Holding Co.

According to William Huang (黃玉炎), former deputy manager at TaipeiBank and former president of TaipeiBank's labor union, the pair had a deep rift concerning personnel matters and management of TaipeiBank.

In December 2001, Liao went back to Taoyuan and served as the deputy commissioner on the invitation of Taoyuan County Commissioner Chu Li-lun (朱立倫).

Liao been a controversial figure in the KMT. As Chen's secretary-general in the Taipei City government, Liao often needed to defend Chen's policies or promote Chen's administration, which made other KMT members doubt his loyalty to the party. Some even asked Liao to quit his post or to withdraw from the KMT.

The late General Wego Chiang (蔣緯國), the younger brother of the late president Chiang Ching-kuo (蔣經國), had reportedly criticized Liao for "colluding with the DPP" because Liao ordered the dismantling of a Chiang family house -- an illegal structure on Yangmingshan.

Liao's and unyielding administrative style displeased many people. But his criticism of the merger has won him support.

Vice President Annette Lu (呂秀蓮) said Liao was courageous in revealing the truth.

DPP City Councilor Hsu Kuo-yung (徐國勇) said Liao's criticism stemmed from his "professional conscience."

Hsu TaipeiBank's non-performing loan rate was quite low -- only 2.18 percent -- when Liao headed the bank.

"As far as I know, Liao rejected many legislators' lobbying to get loans for people who had bad credit records; this offended many people," Hsu said.

"There were few disputes when Liao served as the [bank's] president," Hsu said.

Hsu that about 20 percent of the bank's senior employees left the company after Liao was dismissed.

Describing Liao as a shrewd and eloquent leader, William Huang said Liao was the kind of superior who could tolerate his subordinates' advice despite his authoritative style.

"Thanks to being a public official for 30 years, Liao was scrupulous and methodical. But as long as the suggestions made sense, Liao would accept most of them," Huang said. "Although many employees thought Liao was a tough boss, I have to admit that he is a very capable leader."

DPP City Councilor Wang Shih-chien (王世堅) said he did not think Liao would take advantage of the merger to hit out at Ma in revenge.

"According to Liao's political stance, I think Liao's remark was out of his concern to his old company and colleagues," Wang said.

Although Liao said he never doubted Ma's integrity in the merger, the fallout has prompted the public to pay close attention to the progress of the merger and the Ma administration's ability.