The Ministry of Justice Investigation Bureau (MJIB) has detected increased amounts of money flowing from Taiwanese companies operating in China to certain political candidates apparently under orders from Beijing, bureau sources said.
China is mounting a concerted effort to meddle in Taiwan’s presidential and legislative elections in January next year, bureau officials said on condition of anonymity.
Funding from China is allegedly helping certain candidates win nominations, especially in central and southern Taiwan, they said.
Sources at the bureau’s office in New Taipei City and other regional field stations said that they have noticed an increasing amount of direct and indirect political donations from Taiwanese businesspeople based in China to candidates.
Investigations have been launched to gather evidence of potential contraventions of the Anti-infiltration Act (反滲透法), the sources said.
The act was promulgated in 2020 to prevent influence by hostile foreign forces in elections, referendums and political processes.
“Beijing has pressured Taiwanese businesspeople with threats of audits, tax evasion charges and other legal [means] to force them to channel money toward pan-blue candidates, especially those who advocate China’s ‘one country, two systems’ model and oppose Taiwanese independence,” an official said.
Some Taiwanese companies based in China have made political donations to candidates, as well as indirect transfers to make them appear as if they are from different donors, the officials said.
As Taiwanese businesspeople frequently travel between Taiwan and China, they are targeted to be intermediaries to transfer illegal funds and political donations that are difficult to verify and prosecute, the officials said.
They said they have been able to find solid evidence implicating Taiwanese who are acting on behalf of China.
Some money transfers were done in ways that appear to have breached the Company Act (公司法), as well as money laundering regulations and tax laws, the officials said.
The bureau is expanding the scope of its investigations, they said, adding that indictments would likely follow.
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