Democratic Progressive Party (DPP) lawmakers yesterday said that businesses with close ties to the administration of President Ma Ying-jeou (馬英九) received preferential treatment during the government’s efforts to stabilize the stock market.
The stocks of “Ma-friendly businesses” seemed to be priority targets as government-run funds were used to buy shares to stabilize the local bourse amid recent global economic turmoil, the legislators said.
The lawmakers identified the “Ma-friendly” firms as Yulon Motor Co, China Motor Corp, Far Eastern Group (FEG) and Foxconn Technology Group, because the heads of those conglomerates — Kenneth Yen (嚴凱泰) of Yulon, Douglas Hsu (徐旭東) of FEG and Foxconn chairman Terry Gou (郭台銘) — are all considered to be Ma’s close friends.
The TAIEX fell only 59.68 points on Tuesday after tumbling 5.35 percent in morning trading and closed up 243.2 points yesterday in part because four government-run funds — the labor insurance fund, the labor pension fund, the civil-servant pension fund and the postal fund — were used to prop up the stock market.
However, according to DPP Legislator Tsai Huang-liang (蔡煌瑯), Ma-friendly businesses fared “considerably better” than others during the government’s intervention.
“The DPP supports the government’s intervention to help stabilize the stock market, but the effort should be free of political considerations. The government should not sit there and watch people make a fortune from a financial crisis,” Tsai said.
DPP lawyer Hsu Kuo-yung (徐國勇) said the Chinese Nationalist Party (KMT), of which Ma is the chairman, might be involved in insider trading because the Central Investment Holding Co, a KMT-owned company with a net worth of about NT$20 billion (US$690 million), has been making enormous profits in the stock market since the party returned to power in 2008.
The KMT made a total of NT$1.79 billion through stock dividends from between 2005 and 2007, when it was the opposition party, but the firm’s profits soared to NT$6.92 billion between 2008 and last year, Hsu added.
The KMT was even able to make NT$1.54 billion in profits from stock dividends in 2009 amid a global financial crisis, Hsu said.
“I’ve been scratching my head and I find it difficult to explain how the KMT didn’t lose money in the stock market,” Hsu said.
“If the KMT is that good at investing, I urge the party to make its portfolio public so everyone can make some money,” Hsu added.
In response, KMT caucus whip Chao Li-yun (趙麗雲) said due process was followed for the operation of the four funds and dismissed the DPP’s accusations.
ADDITIONAL REPORTING BY STAFF WRITER
THE CHINA CONNECTION: As Beijing’s aggression increases, so does Taiwanese consciousness, making a new constitution imperative, Hsu Wei-chun said If the nation is to ratify a new constitution, it must first end any illusions about the current document’s relevance to Taiwan, an academic told a forum in Taipei yesterday. For the constitutional revisionist movement to succeed, it needs public enthusiasm, the right timing and a clear plan of action, Chung Yuan Christian University associate professor Hsu Wei-chun (徐偉群) told attendees at the event titled “Imagining a New Constitution for a New Era,” which was organized by the National Taiwan University Graduate Student Association. The Constitution exists under the “one China” framework and has little relevance to Taiwan, Hsu said, adding that
Former president Ma Ying-jeou (馬英九) yesterday urged Beijing to respect the median line of the Taiwan Strait by immediately stopping its military intimidation of Taiwan, as such actions would only hurt the feelings of Taiwanese. Beijing should immediately stop making military provocations against Taiwan, Ma wrote on Facebook after Chinese warplanes in the past week have made numerous forays across the median line that divides the Taiwan Strait. Although it has never officially acknowledged the median line, Beijing used to respect it, Ma said in response to comments on Monday by Chinese Ministry of Foreign Affairs spokesman Wang Wenbin (汪文斌), who said
IDENTITY: The time is right to press on with a referendum, as the nation has heightened visibility and support in the global community, the Taiwan United Nations Alliance said The Taiwan United Nations Alliance yesterday said that it is considering launching a petition for a referendum proposal to have the nation join the UN under the name “Taiwan.” Alliance chairman Twu Shiing-jer (涂醒哲) was joined at a news conference in Taipei by Democratic Progressive Party (DPP) Legislator Huang Hsiu-fang (黃秀芳) and leaders of the Presbyterian Church in Taiwan and civic organizations. They said that it is the right time for a petition because Taiwan’s visibility on the world stage has increased, as it has been praised for its success in containing its COVID-19 outbreak and for helping other countries by sharing
An advertisement displayed in the corridor of the underground Taipei City Mall has caused contention online with social media users saying that it depicts Taiwanese bears as servants of Chinese pandas. The advertisement — which imitates the style of an ancient Chinese painting, but replaces people with bears — shows a scene in imperial China, with Formosan black bears laboring, while pandas relax and enjoy beverages. “The development of the tourism industry is important, but this type of targeted advertising is extremely disrespectful — and it makes people uncomfortable,” Democratic Progressive Party (DPP) Taipei City Councilor Chen E-jun (陳怡君) said. The advertisement, under
RSS