Wed, Apr 08, 2009 - Page 3 News List

Premier calls for steps to clean up financial system

By Shih Hsiu-chuan  /  STAFF REPORTER

Premier Liu Chao-shiuan (劉兆玄) yesterday urged the Financial Supervisory Commission (FSC) to take steps to clean up “financial disorder” at financial institutions in the wake of recent allegations of corruption against former president Chen Shui-bian (陳水扁) and his family, Executive Yuan Spokesman Su Jun-pin (蘇俊賓) said.

Su told a media conference yesterday that Liu had expressed concern about the subject to FSC Chairman Sean Chen (陳冲), but declined to elaborate on the specifics of what the premier had been referring to or what measures the FSC should adopt to regulate problematic financial institutions.

However, Su did not deny that one of the cases Liu was concerned about was the one involving Yuanta Group chairman Rudy Ma (馬志玲) and his wife, Yuanta Securities Corp (元大證券) chairwoman Judy Tu (杜麗莊), who were indicted last week on suspicion of involvement in share-trading irregularities.

Ma’s sons, Yuanta Financial Holding Co president Victor Ma (馬維建) and Yuanta Financial Holding Co chief operating officer Michael Ma (馬維辰), have been listed as defendants for allegedly helping former first lady Wu Shu-jen (吳淑珍) transfer illegal funds overseas.

Prosecutors also accuse Rudy Ma and Tu of having made illegal gains in excess of NT$670 million (US$20 million) in 2005 from the sale of Yuanta Securities Investment Trust Co and structured notes at prices above market value to Yuanta Securities Corp.

Su yesterday quoted Liu as saying that cases similar to the one involving Yuanta Securities Corp needed to be addressed promptly and properly, as they were of great concern to investors.

In related news, Liu yesterday also held a Cabinet-level meeting on anti-corruption measures.

Kuan Kao-yueh (管高岳), director of the Ministry of Justice’s Department of Government Employee Ethics, told a press conference that the government planned to establish an evaluation system to encourage enterprises to refrain from corrupt activities.

“Incentives given to businesses with excellent performance in this regard might include the right of priority for government contracts and preferential rates for loans,” Kuan said.

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