Michael Tsai (
The handover ceremony took place yesterday morning behind closed doors.
Ministry spokesman Yu Sy-tue (虞思祖) told reporters that Minister without Portfolio Huang Hwei-chen (黃輝珍) chaired the ceremony.
He said Tsai held his first meeting as defense chief in the ministry shortly after the ceremony.
Lee decided on Saturday to resign for failing to smoothly carry out an order to establish an arms company Taiwan Goal, incurring doubts and controversy along the way.
The Ministry of National Defense (MND) had planned to be the largest stakeholder in the arms company at 45 percent.
Tsai is the former vice minister of national defense.
Tsai, 67, who has a doctorate from the California Western School of Law, served as a legislator for two terms and as a deputy representative to the US.
Premier Chang Chun-hsiung (張俊雄) confirmed the existence of Taiwan Goal on Feb. 15 following a report by the Chinese-language China Times that it had been established.
Since then, Chinese Nationalist Party (KMT) lawmakers have accused the government of seeking to make a profit from the arms trade.
In a new development, the KMT caucus yesterday said it may organize a "truth investigation committee" to probe arms procurement projects related to the company should the Cabinet fail to disband it by Friday.
"Michael Tsai has been appointed new Minister of National Defense for the remaining three-months of [President Chen Shui-bian's (
Fai alleged that the company may sign under-the-table arms deals if it is allowed to exist.
"We must warn Chen's government to take care of the company as soon as possible or [the caucus] will exercise oversight of the firm by establishing a truth investigation committee," he said.
The fact that 45 percent of the newly established arms dealership's initial capital would come from the ministry had sparked speculation from the KMT that the government would seek to profit from the company's arms trading.
The KMT had also alleged that the legislature would not be able to supervise operations of a private arms company.
Opposition lawmakers also alleged that Vice Premier Chiou I-jen (
During his administrative report to the legislature last Friday, the premier defended Cabinet policy by saying that Taiwan Goal would not be disbanded.
However, the Cabinet announced a sudden halt to government investment in the company on Saturday while Lee surprised many by resigning.
"In terms of Taiwan Goal's establishment, we hoped the government could control it while the legislature could supervise it ... but the company did not live up to these two principles," Fai said.
During a visit to the caucus later yesterday, Tsai said the premier had pointed out that Taiwan Goal would be disbanded soon, but "the disbandment must follow certain legal procedures."
Tsai said he could not promise disbandment of the company by Friday because he did not have decision-making power.
Nevertheless, Tsai said Taiwan Goal will not seek to exist by assuming under-the-table operation or changing the title of the company.
In response to the KMT's proposal, DPP caucus whip Ker Chien-ming (
But he said it is ridiculous that the KMT wanted to probe a company that had not even begun to operate.
DPP Legislator William Lai (賴清德) said that the DPP insisted a private arms company could help promote the nation's defense industry.
He said that he believed the KMT opposed the company only to gain political mileage from the company during the presidential campaign.
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