The Taiwan Foundation for Democracy yesterday said that it has not yet reimbursed the Chinese Nationalist Party (KMT) for a trip to China led by KMT Chairwoman Cheng Li-wun (鄭麗文), adding that the foundation’s charter prohibits sponsoring activities involving unification or independence.
Earlier in the day, KMT Culture and Communications Committee deputy director Yin Nai-ching (尹乃菁) confirmed a Mirror Media report that said the party had applied for subsidies from the foundation to cover NT$4.8 million (US$152,111) in travel expenses for the six-day trip.
The KMT had applied for funding from the foundation to conduct party-to-party exchanges using the proper procedures, Yin said.
Photo: CNA
The foundation, which is chaired by Legislative Speaker Han Kuo-yu (韓國瑜) and funded by the Ministry of Foreign Affairs, was established in 2003 with the primary goal of “establishing a cooperative relationship and aligning with international democratic forces.”
In August 2022, it was listed by China’s Taiwan Affairs Office as “an organization associated with Taiwanese separatists” and subject to sanctions.
Mirror Media reported that the application had cleared the foundation’s internal sign-off processes and the funds were being disbursed to the KMT.
However, the foundation in a statement rejected the report, saying that the application had not yet entered the reimbursement phase.
The foundation said it would process the case in accordance with its charter only after the KMT submits its receipts and a report.
Its endowment and organizational charter forbid the sponsorship of activities involving independence or unification, it added.
In a separate statement yesterday, the foundation said the KMT’s proposal explicitly stated that the trip’s purpose was to promote Taiwan’s ideals of freedom and democracy in China.
As a result, it processed the application according to the principles outlined in its operational guidelines for political party subsidy programs, it said.
The foundation encourages domestic political parties to promote activities related to democracy and human rights, as well as enhancing the quality of Taiwan’s democracy and its global standing, it said.
The foundation’s charter says that up to one-third of its annual budget, as approved by the legislature, can be allocated for subsidies to political parties that receive more than 5 percent of the vote for activities related to democracy and human rights.
Each party can receive up to NT$30 million, with allocations proportionate to legislative seat share, the charter says.
In 2024, the KMT received NT$9,984,797 in subsidies from the foundation, while the Democratic Progressive Party (DPP) received NT$13,860,995 and the Taiwan People’s Party received NT$2,327,327, Ministry of the Interior data showed.
Executive Yuan spokeswoman Michelle Lee (李慧芝) said that the public would question whether such expenditures align with the foundation’s mission.
Now that the trip has ended, the KMT should stop delaying the defense budget, as the public is concerned with actions regarding national security, Lee said.
Mainland Affairs Council Deputy Minister Liang Wen-chieh (梁文傑) said he was shocked to hear that the KMT secured funding from the foundation for its China trip.
The foundation was established to promote understanding of Taiwan’s democratic achievements, while helping break through China’s “diplomatic blockade,” Liang said.
DPP caucus secretary-general Fan Yun (范雲), who is a foundation board member, urged Cheng to withdraw the application, saying that public funds should not be used for exchanges in China that lack democratic elements.
Additional reporting by Liu Wan-lin, Huang Chin-hsuan and Shelley Shan
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