Sun, Mar 24, 2002 page3

• Structure of NSB flawed, analysts say

  INTELLIGENCE Leaks and illegal funds are a result of factionalism and lack of oversight of the National Security Bureau, scholars and politicians all agree

  • By Crystal Hsu / STAFF REPORTER
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  While politicians and scholars bicker over how to balance national security against media freedom, all agree that the organization of the National Security Bureau (NSB) needs reform to prevent further intelligence leaks and malfeasance by its officials.

  Last week, the Chinese-language China Times and Next magazine ran lead stories based on classified documents allegedly leaked by former NSB official Liu Kuan-chun (劉冠軍), indicating that the bureau had set up funds to sponsor covert operations in violation of budget codes.

  Liu, who had worked as NSB chief cashier between 1998 and 2000, fled the country on Sept. 3, 2000, after investigators found unusual transactions in his accounts.

  He is believed to have first escaped to China via Nanliao Port in Hsinchu after embezzling more than NT$190 million, according to a Control Yuan report on March 5 that found Liu and two former NSB heads, Yin Tsung-wen (殷宗文) and Ting Yu-chou (丁渝洲), guilty of dereliction of duty.

  Some speculation places Liu in Australia, while other rumors say he and his family are living in the US using fake identities.

  "It is time the NSB did some soul-searching in the wake of this scandal and intelligence leaks," DPP legislative whip Ker Chien-ming (柯建銘) said.

  Though it had been operating for decades, the bureau was not institutionalized until 1994 under ex-president Lee Teng-hui (李登輝).

  At Yin's advice, Lee gave his approval for the bureau to keep some NT$3.5 billion to fund clandestine tasks -- mainly efforts to cement ties with foreign nations -- to avoid legal procedures from stalling their execution.

  While seeking to curb the political fallout following the disclosure of the funds, the DPP has pushed for legislation to bring the intelligence agency under stricter supervision.

  "While it is impractical to bring all intelligence operations under public scrutiny, more external supervision is recommended to prevent corruption by a few unscrupulous officials," Ker added.

  Liu, put in charge of the secret fund, had reportedly pocketed the interest payments and invested them in the stock market.

  The same Control Yuan report paints his escape as "hastily carried out," as he left a significant part of his fortune behind. The former colonel failed to dispose of a luxurious mansion in Taipei and hundreds of thousands of shares in blue-chip companies.

  Copies of the disclosed documents indicate that they were photocopies from Liu's copy machine in the bureau. Though some believe he stole the secret materials before his escape, others suspect his accomplices leaked them to the media for as-yet unknown reasons.

  Lee Wen-chung (李文忠), a two-term DPP lawmaker on the Defense Committee, attributed the disclosure of the secret documents to a loyalty dispute among the NSB leadership.

  He noted that ranking intelligence and military officials have been trained to oppose Taiwan independence and have had difficulty adjusting to the transfer of power to the pro-independence DPP.

  Though willing to mellow his pro-independence rhetoric, President Chen Shui-bian (陳水扁) has insisted on not jeopardizing the country's sovereignty.

  "Over the years, severe punishment, such as assassination, and a sense of loyalty have been the main glue holding the bureau together," Lee said.

  He added that the bureau has had to rename all its front establishments worldwide following the intelligence leak.

  One National Security Council advisor, who requested anonymity, shared the observation.

  "Since taking office, Chen has struggled to befriend national defense and intelligence agencies," he said. "But the effort has been disappointing. After all, it takes a long time to change one's political beliefs and values."

  He described as "commonplace" the existence of factions within an intelligence organization in light of the compartmentalized nature of its operations.

  Chiou I-jen (邱義仁), who recently took over the helm of the National Security Council, said earlier that the storm is beyond President Chen's capacity to tackle.

  He was quoted as saying the findings of the raid on Next magazine were "stunning."

  The TSU, an ally of the DPP, agrees that the longstanding lack of internal discipline and external supervision has contributed to the NSB's blunder.
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