Chinese Nationalist Party (KMT) lawmakers yesterday questioned the procedural legality of the state-owned National Development Fund’s (NDF) investment in Yu Chang Biologics Co (宇昌生技股份有限公司) in 2007, following the declassification of two documents relating to the investment.
In addition, legislators reiterated accusations against Democratic Progressive Party (DPP) presidential candidate Tsai Ing-wen (蔡英文), who was vice premier at the time, of privately profiting from the investment deal.
The two declassified documents were sent by then-minister without portfolio Ho Mei-yueh (何美玥) on Feb. 9, 2007, and on March 21, 2007, respectively.
Photo: CNA
The first document, which stated that the fund would invest US$20 million in a company that would work with US firm Genentech Inc under three conditions, was sent to then-premier Su Tseng-chang (蘇貞昌) and Tsai for approval, evidence the case did not follow the NDF’s general review procedures.
The files show that Tsai signed two documents on a deal with the US biotech firm Genentech, a member of the Roche Group, for the development of a new AIDS drug known as Anti-CD4, and the drug’s third-stage clinical trial.
However, the second document, which offered more details about the deal and made first mention of the company’s English name — “TaiMed Group” — were sent only to Tsai, for approval.
TaiMed was Yu Chang’s predecessor, which Tsai became chairperson of a few months after resigning as vice premier.
KMT lawmakers questioned Ho’s motives for not sending the documents under her titles of Council for Economic Planning and Development (CEPD) chairperson or NDF convener, since she had taken the two positions at the end of January 2007.
KMT caucus whip Lin Yi-shih (林益世) questioned whether Tsai had known she would become chairperson at Yu Chang before she approved the documents, since the second document proved that the idea of the company already existed.
The fund’s data show that TaiMed held a conference for potential investors on March 31, 2007, and the conference’s report listed Tsai as one of the company’s four key principals.
KMT Legislator Hsieh Kuo-liang (謝國樑) said Tsai might have broken the “revolving door” clause on officials and private sector work, since a key principal would generally become a company executive or be closely connect to its operation.
“The two documents have almost confirmed that Tsai played an authority-abusing role to enrich herself from the deal,” KMT Legislator Chiu Yi (邱毅) said.
Chiu accused Tsai of lying when she said on Friday that that she was not involved in the start-up.
Chiu asked Tsai to give a clear account of how much money the Tsai family placed in Yu Chang’s accounts.
“The account had no money until the DPP administration appropriated money from the NDF,” he said.
Council for Economic Planning and Development Minister Christina Liu (劉憶如), who submitted the declassified documents to the legislature, said the two documents did not clarify why the investment deal was managed as a “special project” approved by the Cabinet, instead of following the NDF’s general application procedures.
However, even for a special project, the case did not fully follow the complete procedures like the other projects, Liu said, adding that “the lack of an exact company name and an official proposal” were major problems in evaluating the case’s legitimacy.
The Chinese name of TaiMed first appeared in the letter sent by Tsai to the fund on July 2007, asking it to wire NT$40 million (US$1.3 million) to the “TaiMed Inc Preparatory Office” account before Sept. 3 of the same year, Liu said.
Another letter was sent on the same day saying the company’s name had been changed to Yu Chang, finally connecting TaiMed with Yu Chung, Liu said.
Additional reporting by Shih Hsiu-chuan
AIR SUPPORT: The Ministry of National Defense thanked the US for the delivery, adding that it was an indicator of the White House’s commitment to the Taiwan Relations Act Deputy Minister of National Defense Po Horng-huei (柏鴻輝) and Representative to the US Alexander Yui on Friday attended a delivery ceremony for the first of Taiwan’s long-awaited 66 F-16C/D Block 70 jets at a Lockheed Martin Corp factory in Greenville, South Carolina. “We are so proud to be the global home of the F-16 and to support Taiwan’s air defense capabilities,” US Representative William Timmons wrote on X, alongside a photograph of Taiwanese and US officials at the event. The F-16C/D Block 70 jets Taiwan ordered have the same capabilities as aircraft that had been upgraded to F-16Vs. The batch of Lockheed Martin
GRIDLOCK: The National Fire Agency’s Special Search and Rescue team is on standby to travel to the countries to help out with the rescue effort A powerful earthquake rocked Myanmar and neighboring Thailand yesterday, killing at least three people in Bangkok and burying dozens when a high-rise building under construction collapsed. Footage shared on social media from Myanmar’s second-largest city showed widespread destruction, raising fears that many were trapped under the rubble or killed. The magnitude 7.7 earthquake, with an epicenter near Mandalay in Myanmar, struck at midday and was followed by a strong magnitude 6.4 aftershock. The extent of death, injury and destruction — especially in Myanmar, which is embroiled in a civil war and where information is tightly controlled at the best of times —
Taiwan was ranked the fourth-safest country in the world with a score of 82.9, trailing only Andorra, the United Arab Emirates and Qatar in Numbeo’s Safety Index by Country report. Taiwan’s score improved by 0.1 points compared with last year’s mid-year report, which had Taiwan fourth with a score of 82.8. However, both scores were lower than in last year’s first review, when Taiwan scored 83.3, and are a long way from when Taiwan was named the second-safest country in the world in 2021, scoring 84.8. Taiwan ranked higher than Singapore in ninth with a score of 77.4 and Japan in 10th with
SECURITY RISK: If there is a conflict between China and Taiwan, ‘there would likely be significant consequences to global economic and security interests,’ it said China remains the top military and cyber threat to the US and continues to make progress on capabilities to seize Taiwan, a report by US intelligence agencies said on Tuesday. The report provides an overview of the “collective insights” of top US intelligence agencies about the security threats to the US posed by foreign nations and criminal organizations. In its Annual Threat Assessment, the agencies divided threats facing the US into two broad categories, “nonstate transnational criminals and terrorists” and “major state actors,” with China, Russia, Iran and North Korea named. Of those countries, “China presents the most comprehensive and robust military threat