Prosecutors indict 22 in former first family case
　

OUTSIDER: Former president Chen Shui-bian’s daughter, Chen Hsing-yu, was indicted, a first for the one family member thought to be least involved in alleged crimes
　

By Shelley Huang
STAFF REPORTER
Friday, Dec 25, 2009, Page 1

Prosecutors yesterday issued indictments against 22 people, including former president Chen Shui-bian (陳水扁), for money laundering, taking bribes or helping the former first family hide and launder money.

The Supreme Prosecutors’ Office’s Special Investigation Panel (SIP) yesterday announced the fourth round of indictments to be served to members of the former first family and high-profile businesspeople.

One of the most notable targets of an indictment this time was the former president’s daughter, Chen Hsing-yu (陳幸妤). Until now, the dentist and mother of three had been viewed as having little involvement in the former first family’s alleged corruption and money laundering crimes because prosecutors did not find strong evidence to suggest any role for her.

Her relative “outsider” status in the alleged illegal flow of cash is also one of the reasons prosecutors cited for not freezing her bank accounts and assets.

Other members of the former first family charged with helping the former president and his wife Wu Shu-jen (吳淑珍) hide and launder money include Chen’s son Chen Chih-chung (陳致中), ­daughter-in-law Huang Jui-­ching (黃睿靚) and extended family members such as Wu’s brother Wu Ching-mao (吳景茂) and his wife Chen Chun-ying (陳俊英).

Chen and his wife were accused of taking bribes from executives of banks and financial holding companies who sought to “protect” themselves and their businesses from being adversely affected during the second phase of financial reform.

One of the financial consolidation cases involved Yuanta Financial Holding’s (元大金控) merger with Fuhwa Financial Holding Co (復華金控), the nation’s 11th-­largest financial group by assets in April 2007.

Prosecutors allege that Chen and his wife took NT$600 million (US$19 million) from Cathay Financial Group and more than NT$200 million from Yuanta Securities as a “payment” for ensuring the financial groups’ mergers and acquisitions of smaller financial institutions went smoothly.

Former Presidential Office deputy secretary-general Ma Yung-cheng (馬永成) was charged with helping the former president collect bribe payments from businesspeople.

Prosecutors said although several current and former bank executives were not criminally liable for offering bribes to the former president because the related laws were not in effect at the time of alleged payments, many businesspeople could not escape charges of helping the ­former first family hide and launder the money.

Among those indicted in connection with money laundering were Yuanta Group founder Rudy Ma (馬志玲), former Yuanta Financial Holding Co president Victor Ma (馬維建) and chief operating officer Michael Ma (馬維辰), former Yuanta Securities Corp board member Tu Li-ping (杜麗萍) and chairwoman Judy Tu (杜麗莊), former China Development Financial Holding Corp (中華開發金控) president Angelo Koo (辜仲瑩), former China Development Financial chief financial officer Sherie Chiu (邱德馨) and former presidential adviser Wu Li-pei (吳澧培).

The new charges against the former president will be added to previous indictments, including his alleged embezzlement of the presidential “state affairs fund,” which is in its second round of legal proceedings at the Taiwan High Court, and the embezzlement of government funds through secret diplomatic projects, currently being reviewed by judges at the Taipei District Court.

Envoy cancels boat trip at last minute
　

LEFT HANGING: Reporters were furious that they were notified of Chen’s change of plan after the media boats had cast off and were waiting in the middle of the lake
　

By Ko Shu-ling, Jenny W. Hsu and Mo Yan-chih
STAFF REPORTERS, IN NANTOU
Friday, Dec 25, 2009, Page 3
　

China’s Association for Relations Across the Taiwan Strait Chairman Chen Yunlin (陳雲林) yesterday canceled a scheduled boat trip on Sun Moon Lake at the last minute and met with People First Party (PFP) Chairman James Soong (宋楚瑜) instead.

Chen referred to Soong as his “old friend.”

The Lalu Hotel, where Chen was staying, was guarded behind barbed wire barricades. A contingent of 1,000 police officers was mobilized to ensure his safety.

Soong said his meeting with Chen, which was also attended by other high-ranking Straits Exchange Foundation (SEF) officials, was about “issues of principle.”

He said he told Chen Taiwan is a free and diverse society where dissenting opinions could be expressed and that an institutionalized negotiation mechanism was the best way to address cross-strait problems peacefully.

However, Soong said the government was not doing a good job in communicating its policies.

He said that when the Democratic Progressive Party (DPP) was in power, then-president Chen Shui-bian (陳水扁) frequently sent then-Mainland Affairs Council chairwoman Tsai Ing-wen (蔡英文) to communicate with him and other party leaders about government policies.
　

“That’s what I call communication,” he said. “Taiwan claims to be a democracy, but it seems the government is reluctant to communicate.”

Soong said he had originally planned to host a banquet for Chen in Miaoli on Wednesday, but this had proved impossible and he had to resort to plan B, which was to host yesterday’s lunch in Nantou.

Soong said the SEF had conveyed a message from President Ma Ying-jeou (馬英九) that it was not a good idea for political parties to host banquets for Chen during his visit, although he added that the way the SEF conveyed the message was “not very skillful.”

He declined to elaborate, saying it would be inappropriate for him to do so, since Chen was still in Taiwan.

Soong urged the government to remember how he and former Chinese Nationalist Party (KMT) chairman Lien Chan (連戰) broke the ice of stagnant cross-strait ties during their separate trips to China in 2005.

“Don’t deny the contributions made by Lien and any other individual to address cross-strait problems,” he said.

PFP Secretary-General Chin ­Ching-sheng (秦金生) said that since Taiwan was a free and open society, it was clearly a violation of the fundamental principles of a democracy to restrict any individual or party from contacting Chen.

“A leader should not have an authoritarian attitude, nor should he try to monopolize the cross-strait relationship,” he added.

While Soong said his meeting with Chen had been scheduled last month, the assistant minister of China’s Taiwan Affairs Office, Li Yafei (李亞飛), later said that Chen canceled a planned tour of the lake at the last moment in order to meet an “old friend.”

Reporters at Sun Moon Lake heaped scorn on Chen yesterday afternoon for failing to show up at the last minute for his scheduled boat trip.

More than 60 members of the media were told to board the media boats at 2:20pm to wait for Chen and his entourage to board the main vessel. After waiting on the boat for more than an hour under the sun, there was still no sign of Chen.

The reporters were furious that they were notified of Chen’s change of plan after the media boats had cast off and were waiting in the middle of the lake.

None of the accompanying government officials, including officials from the Government ­Information Office and the Mainland Affairs Council, had informed the media of Chen’s decision. The reporters found out about his change of plan from their colleagues who had stayed behind at the hotel.

“This is a huge fraud and indicates complete disrespect for the media,” said a television reporter, who added that this was the second time reporters had been “fooled” since Chen arrived in Taiwan on Monday.

The first time was on Monday, when the press corps was driven around Taichung following Chen as he toured the city. Instead of notifying the media of Chen’s itinerary beforehand, the reporters were kept in the dark until his bus stopped at each destination.

A newspaper reporter surnamed Chiu said media freedom in Taiwan had become so restricted that it was becoming similar to the situation in China, where reporters are often purposely misled or given inaccurate information.

Despite Chen’s absence, SEF Chairman Chiang Pin-kung (江丙坤) and his wife still went on the lake tour with Chen’s wife.

Only a few minor protests staged by Falun Gong practitioners and pro-independence supporters took place under heavy police ­surveillance around the lake yesterday.

Later last night, Nantou County Commissioner Lee Chao-ching (李朝卿) hosted a banquet for Chen.

“I did not realize my dream of touring the lake in the afternoon because of a business matter, but I am here and I am still able to enjoy the grand view of the beautiful lake and the mountain,” Chen said at the banquet held at the Lalu Hotel.

Chen and the Chinese delegation will end their five-day trip around noon today.

Soong, who had been scheduled to attend the banquet, said he had another pressing engagement and sent Chin to attend on his behalf.

Officer’s injury met with calls for peaceful protests
　

REPERCUSSIONS: Both the pan-blue and the pan-green camps yesterday urged protesters and police to exercise restraint and try to avoid violence during demonstrations
　

By Jenny W. Hsu and Loa Iok-sin
STAFF REPORTERS, IN NANTOU AND TAIPEI
Friday, Dec 25, 2009, Page 3

A police officer who was injured when he was allegedly pushed from a truck by protesters on Wednesday night was in satisfactory condition yesterday, but needed further hospital care, the Taichung City Police Bureau said.

Six protesters from the pro-­independence “908 Taiwan Republic” campaign were held overnight after being detained and questioned on suspicion of public endangerment, obstruction of justice and assault, bureau deputy chief Yu Hui-mao (余輝茂) said.

All six have been released, with two on bail.

Chen Chu-hsiang (陳諸想), a captain from the Taichung City Second Precinct, was allegedly pushed from a protest truck as he tried to stop the demonstrators setting off fireworks in the direction of the hotels where delegations from Taiwan and China were meeting for the latest round of cross-strait talks.

While the protesters said Chen fell of his own accord, the police said they had video footage that showed the police captain being pushed by a man dressed in a green 908 Taiwan Republic campaign shirt.

TV footage of the incident seemed to show the officer being pushed from the truck.

Chen, who was still under observation last night, sustained lacerations to his face and minor head injuries.

One of the six protesters who had been detained, Liu Ching-cheng (劉慶澄) — who was reportedly responsible for pushing Chen — told reporters he would apologize if he did anything wrong, although he did not believe he had.

The incident marked the most serious injury and the first arrests since the cross-strait talks began on Monday.

A string of top government officials, including President Ma Ying-jeou (馬英九), Taichung Mayor Jason Hu (胡志強) and Democratic Progressive Party (DPP) Secretary-General Su Jia-chyuan (蘇嘉全), expressed concern over Chen’s injuries.

The pan-blue as well as the pan-green camps yesterday urged protesters and police to exercise restraint and avoid violence during demonstrations.

The DPP issued a statement saying the incident should not blur the focus of the protests, which it said was to send a message that the government should refrain from making underhanded deals with Beijing by overriding the people’s right to choose.

Minister of the Interior Jiang Yi-huah (江宜樺) urged demonstrators to be considerate of other people’s safety and only use peaceful means when exercising their freedom of expression.

“Shooting fireworks at a guest is not how you should treat them,” ­Jiang said at the legislature. “Please refrain from crossing the line by using violent means or threatening other people’s safety.”

Jiang also called on the police to strictly follow the guideline of “protecting people’s legal rights while dealing with violators.”

DPP Chairperson Tsai Ing-wen (蔡英文) said that while the party was against using violence, it would provide legal assistance to members of the 908 Taiwan Republic campaign arrested by the police.

“Our party officials yesterday [Wednesday] asked civic groups taking part in protests to refrain from physical conflict and the use of violence, to ensure the protests remain peaceful,” Tsai said at a news conference at DPP headquarters.

“While most of the groups kept their actions peaceful — which we appreciate — it was unfortunate that members of the 908 Taiwan Republic campaign engaged in a violent act, which is something we do not agree with,” she said.

Tsai called on the police to conduct an impartial investigation of the incident and asked the public to stay calm so that it would not cause further civic unrest.

At a separate setting yesterday, Ma said that “[those] who initiated the protest should take full responsibility [for the incident],” referring to the DPP.

“The Parade and Assembly Act [集會遊行法] stipulates clearly that organizers of demonstrations should be held responsible for participants’ behavior,” Ma said when approached by reporters for a comment on the clash.

Premier Wu Den-yih (吳敦義) also said that those who organized the protest should take responsibility.

Executive Yuan Spokesman Su Jun-pin (蘇俊賓) quoted Wu as saying at the weekly Cabinet meeting that the Taichung City Government, the National Police Agency and the Ministry of the Interior had done an “excellent job” in ensuring the safety of the Chinese delegation.

Chinese Nationalist Party (KMT) caucus secretary-general Lu Hsueh-chang (呂學樟) also condemned the DPP over the incident.

KMT spokesman Lee Chien-jung (李建榮) said the incident showed that the DPP had broken its promise to keep the demonstrations peaceful.
　

GIO’s response misses the point
　

By Richard Kagan
Friday, Dec 25, 2009, Page 8

Last Friday I received an e-mail from Government Information Office (GIO) Minister Su Jun-pin (蘇俊賓) responding to “Open letter to Taiwan’s president” (Nov. 13, page 8), which I signed with many other academics. This was one of a series of letters we have written concerning Taiwan’s eroding democratic freedoms, judicial systems and international relations. Su has responded in detail to the previous letters by defending the operations of the government with regard to the judicial system, and President Ma Ying-jeou’s (馬英九) democratic reforms and policies.

But this time, Su wanted to justify and praise Taiwan’s system by referring to the “international community’s assessments” on these matters. His attempt to defend Taiwan by using international standards actually backfired in several ways.

Let me explain in some detail why I question the minister’s research and the professionalism of the GIO.

First, Su uses faulty methodology to prove his point by not providing a context for his argument. He correctly points out that Freedom House ranks Taiwan among the “free” countries of Asia. In the combined ratings of Political and Civil Liberties, Taiwan scores 1.5. This puts it with Israel, Japan and South Korea. The rank of No. 1 is filled mainly by European countries as well as the US and Canada. What he fails to note is that China is scored 6.5 out of a 7-point ranking. China is paired with Zimbabwe and just below Myanmar and North Korea, who scored a 7.

Why, then, is the Ma administration seeking rapprochement with China? How can a democratic country be so blind as to seek close relations with a government that is one of the most among authoritarian societies in the world? Who will benefit? Which is the likelier scenario — that China will force Taiwan to become less free, or that Taiwan will help China become more democratic?

We can actually see the consequence of this relationship in the Corruption Perceptions for this year. Su claims that Taiwan’s ranking in the report on 180 countries issued by Transparency International rose to No. 37. This statement reveals political alchemy at its best. For instance, Taiwan’s score in 2007 was 34. Numerically it did rise to 37. But the higher a country gets, the greater the index of corruption. Somalia is rated at No. 180. In fact, Taiwan fell into greater corruption by three points.

China, meanwhile, moved from 72 in 2007 to is worst score ever, at 79, this year. By Su’s admission, both “regions” (Taiwan and China) are slouching toward Somalia in the corruption index.

Since we talked about Taiwan’s relations with China in our letter, it is important to place Taiwan in the context of Beijing’s power and influence to control cross-strait dialogue.

One can see this most significantly when analyzing press freedoms. Freedom House reports that China has a system of control that “originated under classic totalitarian conditions” and is being modernized to serve the Chinese Communist Party (CCP) leadership. In 2005, China was ranked as No. 177 out of a total of 194 countries. Freedom House does not include in its analysis China’s policies in Tibet. If Tibet had been considered, China’s ranking would certainly have been even worse.

How can Chinese make a rational and educated decision about policies toward Taiwan when they live in an iron box of propaganda? When Beijing talks about the feelings of the Chinese people, how does the leadership know what the people think if it does not allow certain information to be circulated, or criticism of its policies? And why would Taipei believe that Chinese have any independent ideas about cross-strait relations when they are ruled by a state that is similar to Myanmar and North Korea in preventing its people from having freedom of the press, freedom to form political parties and freedom to live in a system ruled by law?

What Su needs is an international standard for judging how governments treat each other. For instance, when looking at some of the international organizations that the minister mentions, I could not find any place called “Chinese Taipei,” “Chinese Taiwan” or “One China.” Freedom House, unlike Beijing and Taipei, uses the appropriate name of “Taiwan” and not any substitute to evaluate the country’s rights and freedoms. Why can’t the leadership in Taipei conform to this international usage?

Su defends his government’s policies through misuse of documents and through the use of irrelevant documents. It does not matter how democratic Taiwan appears to be. What is important to ask is: What happens when a democracy seeks to join one of the authoritarian countries in the world? Actually, what should be compared are the statistics on the ruling parties of each country. The government of China is ruled by the CCP and not by the people. And the government of Taiwan is slowly reverting to a one-party state. In the Taiwan Strait, it is the leaders of the political parties, not government officials, who negotiate.

From a historical perspective, Su is engaging in the colonization of his country by an empire. No mater how pure the pearl is, when it lands in stomach of the predator, it no longer shines.

Richard Kagan is professor emeritus at Hamline University in St Paul, Minnesota.