The Control Yuan yesterday censured the Veteran Affairs Council (VAC) over a major collusion scandal that resulted in losses of at least NT$188 million (US$5.97 million) for the government.
The government watchdog also censured Executive Yuan and National Development Council officials for dereliction of duty and failing to supervise the VAC.
An investigation led by Control Yuan member Wang Mei-yu (王美玉) found inappropriate business conduct and conflict of interest in at least 19 of the Veteran Affairs Council’s construction projects, which were contracted to RSEA Engineering Corp and L&K Engineering Co.
RSEA was established in 1956 as a state-run engineering company under the VAC’s forerunner, the Veterans Affairs Commission.
In line with a government campaign to privatize state-run enterprises, RSEA was acquired by L&K Engineering in 2009 in a deal that sparked a great deal of controversy.
After privatization, RSEA continued to be headed by Ou Lai-cheng (歐來成) as chairman and Hsiao Ching-chih (蕭敬止) as deputy general manager, who had served in those posts since 2007. Both men have substantial holdings in the company.
Despite the intimate business links and conflict of interest, Ou and Hsiao was allowed to negotiate engineering works on the VAC’s tenders, allowing RSEA to secure many of the contracts.
The probe found that contract details left expenditures and workers’ hours open to conditions set by Ou and Hsiao, who proceeded to add extra work hours and other work-site management fees, inflating government expenses on these contracts by NT$188 million, the report said.
The report cited questionable business conduct by the RSEA on these projects and negligence by various officials.
“Public assets were sold far below market prices to profit certain companies and individuals during the privatization of the state enterprise. The probe also found instances of business collusion, conflict of interest and profiteering by designated companies in the cases it investigated,” the report said.
The report recommended that responsible officials and agencies be censured for failing to protect the interests of the government and the public, and for seriously damaging the nation’s image.
In related news, Veteran Affairs Council Director Tung Hsiang-lung (董翔龍) came under fire in the legislature yesterday, with lawmakers questioning the council for providing water and electricity subsidies to several housing units for retired soldiers, to the tune of more than NT$10 million each year.
Lawmakers said the VAC should cut the utility subsidy because most of the homes are now occupied by the veterans’ female Chinese spouses, along with their friends and relatives from China, and that many of them are negligent in taking care of their husband.
Tung said he would look into the matter and ensure that the retired soldiers are being looked after.
‘DENIAL DEFENSE’: The US would increase its military presence with uncrewed ships, and submarines, while boosting defense in the Indo-Pacific, a Pete Hegseth memo said The US is reorienting its military strategy to focus primarily on deterring a potential Chinese invasion of Taiwan, a memo signed by US Secretary of Defense Pete Hegseth showed. The memo also called on Taiwan to increase its defense spending. The document, known as the “Interim National Defense Strategic Guidance,” was distributed this month and detailed the national defense plans of US President Donald Trump’s administration, an article in the Washington Post said on Saturday. It outlines how the US can prepare for a potential war with China and defend itself from threats in the “near abroad,” including Greenland and the Panama
The Chinese Nationalist Party (KMT) is maintaining close ties with Beijing, the Democratic Progressive Party (DPP) said yesterday, hours after a new round of Chinese military drills in the Taiwan Strait began. Political parties in a democracy have a responsibility to be loyal to the nation and defend its sovereignty, DPP spokesman Justin Wu (吳崢) told a news conference in Taipei. His comments came hours after Beijing announced via Chinese state media that the Chinese People’s Liberation Army’s Eastern Theater Command was holding large-scale drills simulating a multi-pronged attack on Taiwan. Contrary to the KMT’s claims that it is staunchly anti-communist, KMT Deputy
RESPONSE: The government would investigate incidents of Taiwanese entertainers in China promoting CCP propaganda online in contravention of the law, the source said Taiwanese entertainers living in China who are found to have contravened cross-strait regulations or collaborated with the Chinese Communist Party (CCP) could be subject to fines, a source said on Sunday. Several Taiwanese entertainers have posted on the social media platform Sina Weibo saying that Taiwan “must be returned” to China, and sharing news articles from Chinese state media. In response, the Mainland Affairs Council (MAC) has asked the Ministry of Culture to investigate whether the entertainers had contravened any laws, and asked for them to be questioned upon their return to Taiwan, an official familiar with the matter said. To curb repeated
Myanmar has turned down an offer of assistance from Taiwanese search-and-rescue teams after a magnitude 7.7 earthquake struck the nation on Friday last week, saying other international aid is sufficient, the National Fire Agency said yesterday. More than 1,700 have been killed and 3,400 injured in the quake that struck near the central Myanmar city of Mandalay early on Friday afternoon, followed minutes later by a magnitude 6.7 aftershock. Worldwide, 13 international search-and-rescue teams have been deployed, with another 13 teams mobilizing, the agency said. Taiwan’s search-and-rescue teams were on standby, but have since been told to stand down, as
RSS