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Hsieh camp attacks Ma over Taipei Fubon Bank

Democratic Progressive Party (DPP) presidential candidate Frank Hsieh's (謝長廷) camp yesterday raised questions about Chinese Nationalist Party (KMT) rival Ma Ying-jeou's (馬英九) relationship with the Taipei Fubon Bank during his time as Taipei mayor.

Hsieh campaign spokesman Hsu Kuo-yong (徐國勇) told a press conference that Ma should explain why Ma defied the Taipei City Council and ordered the city government to deposit all treasury assets in Taipei Fubon Bank. Hsu said Ma made the decision only one month before leaving office in December 2004 and did so without first holding a public tender or other transparent selection process.

Taipei Bank merged with Fubon Bank to become Taipei Fubon Bank on Jan. 1, 2005.

Hsu said the city government had also failed to re-evaluate Taipei Bank's assets after Taipei City's deposit but before the merger.

"The difference in the bank's asset value is estimated at NT$6 billion [US$191.6 million]," Hsu said. "The Ma camp says NT$6 billion is `small money,' but is it?"

Hsu said he could not figure out how the Taipei City Government, which owes the state treasury a significant sum in health insurance fees and has cited financial difficulties to avoid paying those fees, could possibly consider NT$6 billion "small money."

Ordering the treasury to move its assets to Taipei Fubon Bank may have constituted a violation of the Government Procurement Law (政府採購法) Hsu said, adding that the profits the bank earned may therefore have been illegal.

Ma also owes the public an explanation on whether Taipei Fubon Bank had earned interest from the city government's deposits, Hsu said. If so, what has this cost the city treasury, he asked.

Hsu said Taipei Bank did not charge interest before the merger because the bank was a municipal agency at that time. After the merger, it became a privately run company.

Hsu also said the Taipei City Government had earned less profit from the bank since its merger and had far fewer board members than the Fubon Group.

Taipei City has a 15 percent stake in the company, but only two board members, while Fubon Group has an 18 percent stake and seven board members.

"Such a deal is miraculous" for Fubon Group, he said.

No response was unavailable from Ma's campaign office as of press time.
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