Straits Exchange Foundation (SEF) Chairman Chiang Pin-kung (江丙坤) made an emotional appeal in a press release yesterday, rebutting the “false accusations” against him and his eldest son, Michael Chiang (江俊德), concerning alleged investments in China and profiteering from state-run companies.
Next Magazine reported yesterday that Chiang Pin-kung used his position as the minister of economic affairs in 1994 to help his son’s company, Istra Corp, by demanding that state-run steel business Kuei Yi Enterprise purchase items from Istra at a high price.
The magazine said the father-son duo had profited by brokering deals between Kuei Yi and other foreign companies, one of which turned out to be an international fraud ring.
Kuei Yi has been reorganized and renamed Dragon Steel after losing more than NT$5.2 billion (US$170 million).
“My eldest son sacrificed his own chances to advance his education to help raise his younger sister and brothers ... I have always made a strict request that he should never be involved in any state-run businesses,” the SEF chairman said in a statement.
Chiang Pin-kung also said in his statement that he had not played a role in the formation of Kuei Yi Enterprise as alleged in the article, adding that a court had already found that Istra had no relationship with Kuei Yi.
The recent accusations leveled against him, his family and SEF General-Secretary Kao Kong-lian (高孔廉) are probably “politically motivated to purposely tarnish the image of the organization [the SEF] and to impede the progress of peaceful cross-strait developments,” the SEF head said, stressing that his position as chairman was unpaid.
Democratic Progressive Party legislators were not convinced, however, and called on Chiang Pin-kung to step down.
ADDITIONAL REPORTING BY STAFF WRITER
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