The Democratic Progressive Party (DPP) legislative caucus yesterday accused CPC Corp, Taiwan (CPC) of failing to undertake corporate reforms, citing its increased expenditure on water, electricity and public relations.
Having spent NT$5.35 billion (US$18 million) last year and NT$6.35 billion this year on water and electricity bills, CPC allocated NT$7.2 billion for the same items in its budget plan for next year, DPP Legislator Gao Jyh-peng (高志鵬) told a news conference.
“CPC does not look like a company that has pledged to cut costs in its reform plan earlier this year,” Gao said, adding that CPC’s public relations budget also increased from NT$13.9 million last year to NT$17.62 million this year and to NT$19.65 million next year.
The proposed budget is likely to infuriate people at a time when natural gas and gasoline prices have increased, the lawmaker said.
CPC’s increasing electricity bill could also be the result of the electricity price hike implemented by Taiwan Power Co (Taipower), another state-run company the public is calling on to carry out reforms.
Although CPC announced a six-point reform plan in which it pledged to lower costs and unnecessary investment; improve procurement efficiency and profitability; and carry out personnel and organizational reform, it has never been serious about implementing the changes, DPP Legislator Wu Ping-jui (吳秉叡) said.
CPC agreed earlier this year to suspend an offshore oil drilling project off the coast of Greater Kaohsiung, that has not produced any results, to save NT$17.8 billion.
However, CPC has allocated NT$1.36 billion this year and NT$16.4 billion next year to the same project, assuming that the public attention has shifted elsewhere allowing it to re-allocate the budget, Wu said.
“If CPC already has problems lowering its public relations expenditure, I don’t know how it is supposed to carry out a comprehensive reform plan,” DPP Legislator Tsai Chi-chang (蔡其昌) said.
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