Sun, Sep 07, 2014 - Page 3 News List

Former military head indicted on corruption charge

By Chen Wei-tzu and Jason Pan  /  Staff reporter, with staff writer

Former Military Intelligence Bureau head Lieutenant General Shen Shih-chi (沈世籍) was on Friday indicted on a charge of violating the Anti-Corruption Act (貪污治罪條例).

The Taipei District Prosecutors’ Office charged Shen over alleged graft worth NT$63.84 million (US$2.13 million) from the coffers of the Ministry of National Defense.

Shen headed the intelligence bureau, which is run by the ministry, from 2006 to 2008.

Shen used his position to make illegal gains, by arranging a deal to “donate” a 75.43 percent share the ministry held in Chengsheng Broadcasting Corp, a military-controlled radio network with 12 frequencies covering the whole of Taiwan, prosecutors said.

The “donation” went to the supposedly privately owned Han Ru Foundation, prosecutors said.

However, Shen had control and influence over the foundation’s management and finances by appointing his associates, mostly retired military officers from the bureau, to positions on its board, they said.

According to the indictment, the total graft amount included the ministry’s shares of Chengsheng Broadcasting, along with share dividends accrued in 2004 and 2005.

The Chengsheng Broadcasting shares also enabled the foundation to each year make a profit of up to NT$30 million from dividend payments, the indictment said.

The money belonged to the ministry, but instead went to the foundation, which was established in violation of the National Property Act (國有財產法), the Government Treasury Act (公庫法) and the National Treasury Act (國庫法), the indictment added.

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