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
‘TAIWAN-FRIENDLY’: The last time the Web site fact sheet removed the lines on the US not supporting Taiwanese independence was during the Biden administration in 2022 The US Department of State has removed a statement on its Web site that it does not support Taiwanese independence, among changes that the Taiwanese government praised yesterday as supporting Taiwan. The Taiwan-US relations fact sheet, produced by the department’s Bureau of East Asian and Pacific Affairs, previously stated that the US opposes “any unilateral changes to the status quo from either side; we do not support Taiwan independence; and we expect cross-strait differences to be resolved by peaceful means.” In the updated version published on Thursday, the line stating that the US does not support Taiwanese independence had been removed. The updated
‘CORRECT IDENTIFICATION’: Beginning in May, Taiwanese married to Japanese can register their home country as Taiwan in their spouse’s family record, ‘Nikkei Asia’ said The government yesterday thanked Japan for revising rules that would allow Taiwanese nationals married to Japanese citizens to list their home country as “Taiwan” in the official family record database. At present, Taiwanese have to select “China.” Minister of Foreign Affairs Lin Chia-lung (林佳龍) said the new rule, set to be implemented in May, would now “correctly” identify Taiwanese in Japan and help protect their rights, the Ministry of Foreign Affairs said in a statement. The statement was released after Nikkei Asia reported the new policy earlier yesterday. The name and nationality of a non-Japanese person marrying a Japanese national is added to the
AT RISK: The council reiterated that people should seriously consider the necessity of visiting China, after Beijing passed 22 guidelines to punish ‘die-hard’ separatists The Mainland Affairs Council (MAC) has since Jan. 1 last year received 65 petitions regarding Taiwanese who were interrogated or detained in China, MAC Minister Chiu Chui-cheng (邱垂正) said yesterday. Fifty-two either went missing or had their personal freedoms restricted, with some put in criminal detention, while 13 were interrogated and temporarily detained, he said in a radio interview. On June 21 last year, China announced 22 guidelines to punish “die-hard Taiwanese independence separatists,” allowing Chinese courts to try people in absentia. The guidelines are uncivilized and inhumane, allowing Beijing to seize assets and issue the death penalty, with no regard for potential
‘UNITED FRONT’ FRONTS: Barring contact with Huaqiao and Jinan universities is needed to stop China targeting Taiwanese students, the education minister said Taiwan has blacklisted two Chinese universities from conducting academic exchange programs in the nation after reports that the institutes are arms of Beijing’s United Front Work Department, Minister of Education Cheng Ying-yao (鄭英耀) said in an exclusive interview with the Chinese-language Liberty Times (the Taipei Times’ sister paper) published yesterday. China’s Huaqiao University in Xiamen and Quanzhou, as well as Jinan University in Guangzhou, which have 600 and 1,500 Taiwanese on their rolls respectively, are under direct control of the Chinese government’s political warfare branch, Cheng said, citing reports by national security officials. A comprehensive ban on Taiwanese institutions collaborating or
RSS