The Supreme Prosecutors’ Office Special Investigation Division (SID) yesterday closed its investigation into Yu Chang Biologics Co (宇昌生技股份有限公司), now known as TaiMed Biologics Inc (中裕新藥股份有限公司), clearing former Democratic Progressive Party (DPP) chairperson Tsai Ing-wen (蔡英文) of any wrongdoing.
The SID launched its investigation during the presidential campaign after Chinese Nationalist Party (KMT) lawmakers accused Tsai of manipulating investments by the National Development Fund (NDF) in TaiMed when she was vice premier in 2007. Tsai served as chairperson of the biotech company for several months after she stepped down as vice premier in May 2007.
The SID said Tsai did not embezzle any money in the case or abuse any funds. All the money in the National Development Fund’s investment in TaiMed was legal and clear, it said.
Photo: CNA
The SID investigated Taiwan Biopharmaceuticals Co (南華生技), which applied for National Development Fund support in 2005 and 2007, and TaiMed Biotech Fund, which applied for funding in 2007 and 2008.
Taiwan Biopharmaceuticals was to be a pharmaceutical company founded in Taiwan by Nancy Chang (唐南珊), chairperson of Tanox — a US-based biopharmaceutical company — and then-Euroc Venture Capital Co chairman Kao Yu-jen (高育仁) for the research and development of a drug known as TNX-355.
TNX-355 is an anti-AIDS drug that may prevent HIV from breaching the immune system.
The SID investigation clarified why the National Development Fund refused Taiwan Biopharmaceuticals’ TNX-355 funding request, but provided funding to Yu Chang, which was importing and developing a similar drug from the US drug giant Genentech and later acquired Tanox in 2007.
The SID said there was no evidence that the National Development Fund’s decision resulted from external factors and there was no evidence that senior government officials lobbied for TaiMed.
Documents showed the fund’s decision not to provide support to Taiwan Biopharmaceuticals Co was because Tanox had been acquired by Genentech, and Taiwan Biopharmaceuticals Co did not clearly explain its future technology sources and the company’s development structure to the fund, the SID said.
The SID said that although both TaiMed and Taiwan Biopharmaceuticals Co planned to build plants and manufacture products in Taiwan, Taiwan Biopharmaceuticals Co’s plan was to manufacture 80 percent of Tanox’s orders, but TaiMed’s proposal was that TaiMed and Genentech cooperate to develop TNX-355 and that the new drug, if developed successfully, would be manufactured in Taiwan.
The SID said the Tsai family invested in TaiMed using their own money and that all the funding was clean.
The SID said it interviewed more than 30 people during the investigation, including former premier Su Tseng-chang (蘇貞昌), former Council for Economic Planning and Development (CEPD) chairpersons Ho Mei-yueh (何美玥) and Hu Sheng-cheng (胡勝正), and Yu Chang funders David Ho (何大一), an AIDS expert, and Chen Lan-bo (陳良博), a Harvard University professor.
The SID said Hu, who may have violated laws regarding the private-public boundary, was sent to the Taipei District Prosecutors’ Office for investigation.
Hu served as chairperson of TaiMed after leaving his post at the council.
The SID also sent former National Development Fund deputy executive director James Ho (何俊輝) to the Control Yuan for investigation because it said he had inappropriately discussed Yu Chang’s proposal at Tsai’s residence and office.
In a press release, Tsai said she has always been honest about her role and involvement in Yu Chang Biologics, which she said was a collaboration between the administrative and legislative branch to promote development of Taiwan’s biotechnology industry.
However, she said the KMT administration used the case as a political tool during the presidential campaign, a move that not only tainted the reputation of several renowned scientists, but also hurt the development of the sector.
“While the [SID’s] decision has proven the innocence of the people involved, it would be very difficult for me to say that I’m happy with the results,” Tsai said.
Tsai said she was not surprised by the findings, adding that she hoped the case would be an example for elections in the future.
“We hope the mud-slinging tactics will stop right here and the national leader will no longer employ government agencies for political gain,” Tsai said.
Additional reporting by staff reporter Chris Wang
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
COUNTERINTELLIGENCE TRAINING: The ministry said 87.5 percent of the apprehended Chinese agents were reported by service members they tried to lure into becoming spies Taiwanese organized crime, illegal money lenders, temples and civic groups are complicit in Beijing’s infiltration of the armed forces, the Ministry of National Defense (MND) said in a report yesterday. Retired service members who had been turned to Beijing’s cause mainly relied on those channels to infiltrate the Taiwanese military, according to the report to be submitted to lawmakers ahead of tomorrow’s hearing on Chinese espionage in the military. Chinese intelligence typically used blackmail, Internet-based communications, bribery or debts to loan sharks to leverage active service personnel to do its bidding, it said. China’s main goals are to collect intelligence, and develop a
RSS