In the latest twist in a multi-year investment scandal, Democratic Progressive Party (DPP) caucus whip Ker Chien-ming (柯建銘) was yesterday ordered to pay a fine or serve a six-month jail sentence after the Taiwan High Court found him guilty of failing to return a NT$12 million (US$380,000) loan.
The ruling, which upheld an earlier decision by a lower court, said Ker had violated the Business Accounting Act (商業會計法) when he took a NT$12 million loan while serving as general manager of Formosa Telecom.
Ker borrowed the amount in 1997 from a friend, saying he would invest it in a property development subsidiary of the firm.
According to court documents, he later used the check as collateral for a cash loan of the same amount, approved by the then-operator of Formosa Telecom, surnamed Chang (張).
Chang later returned the NT$12 million check when the subsidiary failed to get off the ground, but Ker did not return the money, instead opting to do a stock swap with Lungyuan International, another company where Ker served as general manager.
Prosecutors said that to repay the debt, Ker had set up a short-term repurchase agreement that saw Formosa Telecom pay NT$32 million to buy NT$20 million in shares in the other company. The move led to accounting errors at Lungyuan and a shortfall of NT$12 million for Formosa Telecom.
Central News Agency reported yesterday the money had yet to be recovered.
While Ker did not comment on the latest decision, staff at his legislative office confirmed the opposition party lawmaker would appeal the ruling with the Supreme Court and was still “cautiously optimistic” about the outcome.
The verdict was the latest in a string of scandals involving DPP politicians connected with Formosa Telecom, one of two investors that established Formosa Television Inc.
The privately held company was jointly set up by DPP Legislator and former caucus whip Chai Trong-rong (蔡同榮) and former acting DPP chairperson Chang Chun-hung (張俊宏) between 1996 and 1997. At the time, it received heavy support from pro-independence activists and other opposition party figures.
In October 2007, Chang was sentenced to 11 years in prison for embezzling funds after prosecutors accused him of only using NT$1 billion to fund Formosa Television despite raising NT$3 billion in capital from 15,000 investors in 1996.
The verdict is under appeal.
Palauan President Surangel Whipps Jr arrived in Taiwan last night to kick off his first visit to the country since beginning his second term earlier this year. After arriving at Taoyuan International Airport at around 6:30 pm, Whipps and his delegation were welcomed by Minister of Foreign Affairs Lin Chia-lung (林佳龍). Speaking to gathered media, the Palauan leader said he was excited and honored to be back in Taiwan on his first state visit to Taiwan since he was sworn in this January. Among those traveling with Whipps is Minister of State Gustav N. Aitaro, Public Infrastructure
President William Lai (賴清德) yesterday thanked Palau for its continued support of Taiwan's international participation, as Taipei was once again excluded from the World Health Assembly (WHA) currently taking place in Switzerland. "Palau has never stopped voicing support for Taiwan" in the UN General Assembly, the WHO and other UN-affiliated agencies, Lai said during a bilateral meeting with visiting Palau President Surangel Whipps Jr. "We have been profoundly touched by these endorsements," Lai said, praising the Pacific island nation's firm support as "courageous." Lai's remarks came as Taiwan was excluded for the ninth consecutive year from the WHA, which is being held in
RESOLUTIONS DEBATE: Taiwan’s allies said that UN and WHA resolutions cited by China and other nations ‘do not determine Taiwan’s participation in WHO activities’ A proposal to invite Taiwan to this year’s World Health Assembly (WHA) was rejected on Monday, resulting in Taipei’s absence from the annual meeting for a ninth consecutive year, although partners spoke up for Taiwan’s participation at the first day of the meeting. The first agenda item after the opening was a “two-on-two debate” on a proposal to invite Taiwan to participate at the WHA as an observer. Similar to previous years, two countries made statements in favor of the proposal, while two others expressed their opposition. Philippine Secretary of Health Teodoro Herbosa, president of the 78th WHA, accepted the WHA General Committee’s
At least three people died and more than a dozen were injured yesterday afternoon when a vehicle struck a group of pedestrians in New Taipei City’s Sansia District (三峽). The incident happened at about 4pm when a car rammed into pedestrians at an intersection near Bei Da Elementary School. Witnesses said the sedan, being driven at a high speed, ran a red light, knocking scooters out of the way and hitting students crossing the road before careening into a median near the intersection of Guocheng and Guoguang streets. The incident resulted in three deaths and 13 injuries, including the driver, a 78-year-old man
RSS