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Accusations fly over former KMT asset argument

"The board decided to dismiss Chuang from her position, because she was found constantly using CMPC money to pay for shares."

Alex Tsai, KMT legislator

A dispute over the Chinese Nationalist Party's (KMT) sale of its assets broke out yesterday, as accusations flew between two people involved with one of the party's former companies.

Former vice president of the Central Motion Picture Corporation (CMPC, 中影) Chuang Wan-chun (莊婉均) yesterday accused KMT Legislator Alex Tsai (蔡正元), the president of CMPC, of stealing her shares in the corporation.

Central Investment Holding Co (中央投資公司), one of the main enterprises owned by the KMT, previously owned 82.56 percent of CMPC's shares.

As part of the KMT's plan to divest itself of its stolen assets before they could be recovered by the government, Jung-li Investment Co (榮麗投資公司) bought CMPC and two other media assets in late 2005.

Jung-li Investment Co, with the help of the KMT, then sold CMPC to Gou Tai-chiang (郭台強), the brother of Hon Hai Precision Industrial Co (鴻海科技) Chairman Terry Gou (郭台銘), and one of the richest people in Taiwan.

According to Chuang, she took Tsai's advice and registered her CMPC shares under the name "Apollo," an investment company owned by Tsai, and appointed Tsai as CMPC's president.

"Last September, Tsai changed the ownership of my shares in the company, which were valued at NT$1.2 billion (US$ 36.4 million), and registered them to himself. Tsai reshuffled the board on Jan. 16 in order to assume full control of the corporation," Chuang said.

Meanwhile, she said Tsai dismissed her from her post as CMPC's vice president.

Tsai rebutted the accusations, saying Chuang didn't own any shares in CMPC, adding that she "spent not a penny" on the deal.

He said he was asked by Gou and the KMT to act as a witness to the deal, and that all the parties trusted his company Apollo with the handling of the transaction.

"The board decided to dismiss Chuang from her position, because she was found constantly using CMPC money to pay for shares," Tsai said.
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