The Legislative Yuan yesterday afternoon passed a law regulating private foundations, which is to increase public oversight for more than 100 such organizations that receive state funding.
Following intense debate between the Democratic Progressive Party (DPP) and opposition lawmakers, the legislature voted to exclude irrigation associations and religious organizations from the scope of the legislation.
Lawmakers agreed that the legislation is not applicable to irrigation associations, as they are legally considered public entities, while faith-based organizations should be regulated by a separate law to be drafted at a later date.
The bill was introduced to improve transparency and accountability ahead of the nation’s review by the Asia/Pacific Group on Money Laundering in November.
The Judiciary and Organic Laws and Statutes Committee in April passed a draft of the bill, which later stalled over disagreements about whether religious groups should be included in its scope.
Lawmakers on Monday began deliberations in an attempt to reconcile their differences, resulting in the decision to set aside the issue of religious groups.
DPP Legislator Tuan Yi-kang (段宜康) and the New Power Party caucus had supported subjecting religious organizations to the act’s authority.
However, the DPP and Chinese Nationalist Party (KMT) caucuses were opposed, citing a significant difference in opinion between Executive Yuan and Judicial Yuan officials consulted about the issue.
The DPP and KMT caucuses agreed to set aside the issue and later create separate legislation that would regulate the finances of religious groups, which are to remain under the purview of the Civil Code until such a law is passed.
Another controversial item was a provision in the Cabinet’s initial draft that allowed the government to take control of foundations subsidized by the state by buying a majority stake.
The provision would give the government the ability to seize a number of foundations that had been mostly state-funded, which would empower the DPP to “purge dissidence” and “expropriate private property,” KMT Legislator Lai Shyh-bao (賴士葆) said.
DPP Legislator Lee Chun-yi (李俊俋) said that Lai had proposed an identical law in 2012, displaying “commendable moral courage for a KMT lawmaker.”
The legislation — including the provision empowering the government to buy state-funded foundations — was passed in a vote with unanimous support from DPP lawmakers.
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