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Lin Yi-shih rejects
bribery claim
CLEAN GOVERNMENT: The DPP called for an
immediate investigation into the allegations, saying Ma should explain the
actions of his Cabinet secretary-general
By Shih Hsiu-chuan and Chris Wang / Staff reporters
Executive Yuan Secretary-General
Lin Yi-shih holds up documents at a press conference in Taipei yesterday to
prove his innocence after a weekly magazine alleged that he accepted bribes.
Photo: Wang Min-wei, Taipei Times
Executive Yuan Secretary-General Lin
Yi-shih (林益世) yesterday denied allegations that he attempted to demand more
money from a company that had given him NT$63 million (US$2.15 million) as a
bribe for helping it with a procurement contract when he was a lawmaker.
Calling a press conference at the Executive Yuan in response to a report in the
latest issue of the Chinese-language Next Magazine, Lin said he was considering
legal action to prove his innocence.
The Next Magazine report alleged that Lin helped Ti Yung Co (地勇選礦公司) secure a
two-year contract to procure slag and iron-bearing materials from China Steel
Corp (中鋼), the nation’s largest integrated steelmaker, and that Lin received
NT$63 million from Ti Yung in return for his assistance.
Lin was then a lawmaker of the Chinese Nationalist Party (KMT). He was appointed
to his current post after President Ma Ying-jeou (馬英九) was re-elected in
January.
The report claimed that Lin used his position to ask state-run China Steel not
to renew its contract with Ti Yung after Ti Yung allegedly turned down Lin’s
request for a fund of NT$83 million.
The magazine based its allegations on information provided by Chen Chi-hsiang
(陳啟祥) and his wife, who were in charge of Ti Yung. It said Ti Yung was on the
verge of collapse as China Steel had stopped supplying the company with
materials as of April 1.
It said Chen then tried to seek Lin’s assistance after April 1, but Lin turned
him down.
It added that this led Chen to report the case to the media to “save the company
and its employees’ livelihoods.”
Lin said the accusation was “ridiculous” because he, as secretary-general of the
Executive Yuan, does not have the power to decide on any contracts China Steel
signs with downstream companies.
To disprove the report, Lin presented several documents from China Steel, which
stated that it was the Greater Kaohsiung Government that demanded that China
Steel Corp stop providing slag to Ti Yung because of environmental issues.
Lin said he had “no reason, no power, whatsoever” to influence the Greater
Kaohsiung administration.
At a separate press conference, the Democratic Progressive Party (DPP), said Ma
should explain to the public how he would handle the bribery allegation against
Lin, one of the highest-ranking officials in the country.
Ma has always stressed the importance of eradicating government corruption and
has demanded that his fellow KMT members and government officials conduct
themselves in the same manner, DPP spokesperson Lin Chun-hsien (林俊憲) said.
Lin Yi-shih had also written on his blog that “cleanness is the first priority
of a politician,” Lin Chun-hsien added.
Ma needs to personally explain then the allegations against Lin Yi-shih, who is
among a handful of young KMT up-and-comers that the president has been grooming,
the spokesperson said.
The DPP legislative caucus said it was shocked to learn about the reported
incident and made three demands at the press conference.
“The caucus demands Lin Yi-shih immediately explain in detail about the alleged
scandal. We also demand that Premier Sean Chen suspend him immediately and that
the Supreme Prosecutors’ Office Special Investigation Division (SID) launch an
investigation immediately,” DPP Legislator Cheng Li-chiun (鄭麗君) said.
Given the full details reported by the magazine, “it is hard to believe that the
corruption allegation is untrue,” she said, adding that Lin Yi-shih had admitted
that he knew the company’s owner.
The allegation is the latest in a string of similar scandals involving state-run
companies, such as Taiwan Power Co (台電) and CPC Corp, Taiwan (台灣中油), and the
government should conduct a thorough investigation into these companies, DPP
Legislator Lee Chun-yi (李俊俋) said.
With the Legislative Yuan scheduled to hold an extra session starting on July 25
and the executive and legislative branches expected to battle anew over the
ractopamine-in-beef and capital gains tax issues, Lee said the government should
present the results of its investigations when the session opens.
Presidential Office spokesman Fan Chiang Tai-chi (范姜泰基) said Lin Yi-shih had
discussed the content of the magazine report with Ma on Tuesday and the
president asked him to clarify the issue as soon as possible.
“Integrity is a basic moral standard for a public servant, and there is no gray
area ... Over the past four years, President Ma has insisted on integrity for
himself and has adopted the same standard for his administration,” Fan Chiang
said.
The scandal came as a surprise for the KMT and the Ma administration. Lin
Yi-shih is one of the promising stars in the KMT who has served as KMT vice
chairman and caucus whip in the legislature.
Although he lost in the legislative elections in January, he remains a key
member of the KMT and has been touted as the party’s potential candidate in the
next Greater Kaohsiung mayoral election.
SID spokesman Chen Hung-ta (陳宏達) said State Prosecutor-General Huang Shyh-ming
(黃世銘) had asked the agency to collect the information from the magazine and to
launch an investigation into Lin Yi-shih.
In other news, China Steel issued a statement later yesterday saying it had
decided to stop supplying slag to Ti Yung because the company had violated a
contract by depositing excess amounts of the industrial waste.
China Steel said Greater Kaohsiung’s Environmental Protection Bureau notified it
on March 23 that Ti Yung had been banned from accepting new slag because it was
already storing “a large amount of metal slag.”
Although the bureau revoked the ban on June 1, it nevertheless required Ti Yung
to remove the metal slag it had stored at six different sites within six months,
China Steel said.
The company said it would continue to suspend slag supplies to Ti Yung until the
situation has improved.
Additional reporting by Mo Yan-chih, Rich Chang and CNA
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