The lack of government oversight in the nation’s 165 state-funded organizations has become a contentious issue after the Executive Yuan’s passage last week of a draft bill governing judicial associations, with the legislature’s Budget Center raising concerns over such organizations.
The Democratic Progressive Party (DPP) caucus has been paying close attention to several foundations that were established using properties left by the Japanese colonial government, including the Taiwan Telecommunication Industry Development Association, the Postal Association and the Taiwan Sugar Association, DPP Legislator Lee Chun-yi (李俊俋) said.
Other state-funded organizations that the DPP has been watching are the CTCI Foundation and the Chiang Ching-kuo Foundation for International Scholarly Exchange, Lee said.
Lee said the Taiwan Sugar Association was transferred to state-owned Taiwan Sugar Corp in March last year after it fell under private control due to a controversial revision of the association charter in early 2000.
Equally concerning is the dilution of the government’s stake in the CTCI Foundation, a technical consulting organization that was founded in 1959 with funding from several state-owned and private businesses, Lee said.
“Also, the Chiang Ching-kuo Foundation, which sees NT$1.42 billion [US$46.4 million] of its NT$3.62 billion of assets coming from state funding, is also to be covered by the draft bill,” Lee said.
The Budget Center has also voiced concerns over some state-funded associations’ attempts to avoid scrutiny.
The center has named several associations established using properties from the Japanese colonial government and called for their transfer back to the state.
The associations include the Taiwan Telecommunication Industry Development Association and the Postal Association, as well as the employee welfare committees of the state-run Taiwan Railways Administration (TRA), Taiwan Power Co and Taiwan Tobacco and Liquor Corp (TTL).
Despite repeated calls from the center, the TRA’s staff welfare committee has said that it has returned government-owned lands to the state.
TTL’s committee has also dismissed the possibility that it was established with Japanese properties, saying that the company’s main source of income is its annual profits.
Also named by the center is the Forestry Bureau’s employee welfare committee, which took over the properties of a similar organization established by the Japanese colonial government.
Although the Taiwan Shin Sheng Daily News, a government-run newspaper published during the Japanese colonial era, has also been singled out by the center, its privatization in 2001 and liquidation in 2003 makes it difficult to trace the company’s takeover and handling of Japanese assets, the center said.
The center has also criticized the Taipei Exchange, the Taiwan Stock Exchange, the Taiwan Futures Exchange and the Taiwan Depository and Clearing Corp for attempting to evade government supervision by asserting that the state does not hold a controlling stake in their firms.
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