■ Electronics
Samsung `limits' directors
Samsung Electronics Co, the world's most valuable company without a stock listing in a developed market, limits the role of outside directors by excluding them in long-term planning, the Asian Wall Street Journal reported, citing four independent directors. Executives at the South Korean electronics maker think the role of outside directors is supervisory in nature and that they should limit comments to short-term management, the newspaper said, citing board director Franz-Hermann Hirlinger. Samsung Electronics, whose shares trade at a discount to overseas rivals because of its lack of transparency, is resisting pressure from foreign shareholders and outside directors to list its stock in the US because of stricter disclosure requirements, the paper said.
■ Aviation
Garuda fires board
PT Garuda Indonesia, the nation's largest airline, dismissed its entire 13-member board of directors today, in a government move to find better managers to improve the carrier's financial performance, a minister said. Indonesia's government, which owns Garuda, yesterday began firing the six commissioners and seven directors on the board of the Jakarta-based airline, said State Enterprises Minister Sugiharto. This would be the second time in eight years that Garuda changed its board of directors. The airline, which may have had its first loss last year since 1998, faces competition from 10 low-fare airlines that are flying in Southeast Asia. Fuel prices that surged to records have also eroded profitability. Garuda was set up in 1949 and nationalized in 1954.
■ Litigation
Qwest directors charged
The US Securities and Exchange Commission (SEC) charged former Qwest Communications CEO Joseph Nacchio and six other executives on Tuesday with orchestrating a "massive financial fraud" at the telecommunications company that hid the true source of billions of dollars in revenue. In a civil lawsuit, regulators blamed Qwest's problems on aggressive revenue and earnings targets set by Nacchio and others that created a "culture of fear" throughout the company. The charges say the fraud occurred between April 1999 and March 2002 and caused the Denver-based company to fraudulently report approximately US$3 billion of revenue.
■ Banking
CCB chairman `resigned'
China Construction Bank (中國建設銀行) yesterday confirmed its chairman had "resigned" amid reports of a graft investigation that analysts warned may force it to postpone a massive overseas share sale until next year. Zhang Enzhao (張恩照) asked to be relieved of his duties for "personal reasons" and the board of directors at China's third largest lender promptly granted him his wish, the bank said in a statement. The dramatic move came a day after Hong Kong media reported Zhang had been put under house arrest on suspicion of corruption, raising concerns over plans for a massive initial public offering (IPO) abroad. "It's good news they're moving so fast," said Bonnie Lai, an analyst with Core Pacific-Yamaichi in Hong Kong. "But they will probably have to postpone their IPO, perhaps until next year." The bank is trying to spruce up for a share sale abroad, most likely in Hong Kong, hoping to raise between US$5 billion and US$10 billion, according to reports.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
‘FORM OF PROTEST’: The German Institute Taipei said it was ‘shocked’ to see Nazi symbolism used in connection with political aims as it condemned the incident Sung Chien-liang (宋建樑), who led efforts to recall Democratic Progressive Party (DPP) Legislator Lee Kun-cheng (李坤城), was released on bail of NT$80,000 yesterday amid an outcry over a Nazi armband he wore to questioning the night before. Sung arrived at the New Taipei City District Prosecutors’ Office for questioning in a recall petition forgery case on Tuesday night wearing a red armband bearing a swastika, carrying a copy of Adolf Hitler’s Mein Kampf and giving a Nazi salute. Sung left the building at 1:15am without the armband and apparently covering the book with a coat. This is a serious international scandal and Chinese
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
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