Assets under the control of the Friends of the Armed Forces Association should be investigated, Democratic Progressive Party (DPP) Legislator Chen Chi-mai (陳其邁) said yesterday, as questioning concluded at the Legislative Yuan in Taipei of government officials over draft legislation to deal with alleged “illicit” assets under the control of the Chinese Nationalist Party (KMT).
“The Friends of the Armed Forces Association was established by the KMT and received NT$33.3 billion [US$1 billion] in funding from the government, but only NT$1.8 billion remains,” Chen said at an Internal Administration Committee meeting, where the proposals are being reviewed.
Chen serves as one of the committee’s conveners.
Photo: Taipei Tiimes
“Put simply, this is a case of public property becoming party assets that then became private property,” Chen said, adding that the organization’s budget suggests that there is a possibility it had not directed all of the funds it received from a military benefit tax to charitable work.
The tariff was levied on the US-dollar value of all imported goods from 1955 to 1989, with Chen saying that one-third of the funds had gone to the association.
The association was founded in 1951 to perform charitable work related to members of the armed forces, but today is known mainly for the Hero House chain of hotels and a restaurant it operates nationwide.
Chen said the association last year spent only NT$10 million on charity for members of the armed forces out of its annual gross revenue of NT$380 million, despite being able to rent public land at low rates.
“The Hero House facilities were intended to benefit members of the armed forces and lot of money was raised for the purpose, but now they are even open to Chinese tourists,” he said. “This is using a charity benefiting troops as a cover for running a business.”
Dealing with “subsidiary organizations” that are historically affiliated with the KMT has been a key issue in the national debate over “transitional justice” to redress perceived injustices that occurred prior to democratization, with critics advocating that the organizations be obliged to return illicitly acquired assets to national control.
Yesterday’s hearing came after a previous questioning session ran overtime.
A series of public hearings is to follow before formal review of the proposals begins.
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