Showing posts with label special funds. Show all posts
Showing posts with label special funds. Show all posts

Friday, July 24, 2009

Businessman connected to Chen in Scandal with Rudd of Oz

The Age reports on a Taiwan businessman close to Chen who paid for Rudd to fly to London and donated megabucks to the Australian Labor Party.
Kung Chin Yuan, a long-standing friend of former Taiwanese president Chen Shui-bian, flew Mr Rudd to London for two weeks in June and July of 2005 when Mr Rudd was Labor's shadow foreign minister.

The sponsorship of Mr Rudd came at a time when Taiwan was making efforts to boost its influence with Australia and other countries in the region.

Mr Kung, who is based in Brisbane, has been linked to a secret fund that helped bankroll unofficial Taiwanese diplomatic operations in Australia and the South Pacific.

At the time of Mr Rudd's trip, there was concern in Taiwan about contacts between senior Labor figures and mainland Chinese business interests. There was also concern about "pro-Beijing" comments made by Mr Rudd in mid-2004.

The Prime Minister's office has declined to answer questions about how long Mr Rudd has known Mr Kung, why he accepted the sponsored trip, who he met in London and whether Mr Kung had contributed to his fund-raising efforts. "Mr Rudd's interactions with Mr Kung have been entirely appropriate," a spokesman said.

Australian Electoral Commission records also show Mr Kung donated $120,000 to the Queensland ALP branch between 1998 and 2006.

In 2007-08, when Mr Rudd led Labor to power, Mr Kung contributed a further $100,000 to the federal ALP using the name Lawrence Kung.

The secret fund to which Mr Kung has been linked was, according to former president Chen, used to support Taiwan's efforts to secure diplomatic recognition in the South Pacific and gain influence in Australia.
The secret fund is what the prosecutors are accusing Chen of stealing. If Chen stole it, where did this money come from? Another charge against Chen is that they falsified receipts. Do you think that the Australian Labor Party gave receipts for the secret fund for the two donations? And do you think Kevin Rudd gave a proper receipt for his business class trip to London? In any case, as I have noted numerous times, the whole receipt thing was an obvious set up, since the rules were changed in '02 and no previous president had to give receipts for expenditures from the secret fund. Only Chen Shui-bian had to give receipts.

Last year I observed that it is rumored that one of the reasons the KMT is so interested in peering into Chen's funding flows is that Beijing wants to know where Taiwan's money is going. Take that, Beijing.

Onward....

In 2006, a senior politician from the then Taiwanese opposition KMT party told a parliamentary committee that the Queensland-based Mr Kung had received $US625,000 ($A764,000) from Chen's special fund.

The KMT politician alleged the money sent to Mr Kung was used on Mr Chen's behalf to invest in Chinese real estate, not to carry out secret diplomatic work. But Mr Chen rejected the claim, insisting the fund was used to pay for secret diplomatic missions.

His denials were not enough to deter government prosecutors who have since 2006 pursued Mr Chen, his wife and aides over the alleged embezzlement of funds from the secret diplomatic account.

In his initial interviews with prosecutors, Mr Kung refused to disclose the identities of the "secret agents" receiving money from the fund for fear their lives would be at risk.

Taiwanese newspapers say Mr Chen later told prosecutors Mr Kung had received money to undertake secret diplomatic work at his request.

Mr Kung, who owns an exclusive property on Brisbane's riverfront and is a member of the Queensland branch of the Taiwan Australia Business Council, could not be contacted for comment. He has previously denied receiving money from Mr Chen's fund.

Mr Kung has reportedly refused six summonses from prosecutors to return to Taiwan to testify in Mr Chen's case. Instead, he has faxed a statement in which he said he had never received money from the fund for secret diplomatic work.

Taiwan prosecutors have obtained invoices that allegedly bore Mr Kung's name and were used by Mr Chen's family to claim money from the presidential fund.

Let's see... a KMT legislator claims that Chen gave the money to Kung to invest in Chinese real estate. That legislator was Lee Ching-hua, brother of Diane Lee, the legislator with the US citizenship. The Taipei Times reported on this in 2006...

Chinese Nationalist Party (KMT) Legislator Lee Ching-hua (李慶華) told the legislature's Organic Laws and Statutes Committee yesterday morning that a reliable source told him that the president had wired NT$20 million (US$625,000) to China-based businessman Kung Chin-yuan (龔金源).

The legislator claimed that the money came from President Chen's special allowance fund and was actually used to invest in real estate in China.

Lee Ching-hua said he'd resign if he was wrong. Yeah, right. Needless to say, Lee's anonymously sourced claim has been shown to be fiction. The money was spent where Kung said it was spent.

The donations to Labor came at a time when Australia was following the shortsighted policy of opposing the dollar diplomacy between Taiwan and China in the South Pacific. Now that Taiwan has essentially halted its diplomatic programs, China is consolidating its position in the South Pacific island states. And everyone knows that Chinese money is not corrupting, and China always supports clean, democratic politics in the states in moves close to.

The reality is that Taipei was suppressing Chinese influence in the Pacific at no cost to Australia itself. Stupid.
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Tuesday, April 17, 2007

Special Funds Fun

The Special Funds issue will be smacking the DPP soon, as investigations have opened into major DPP figures:

Meanwhile, the cases involving the four DPP aspirants for the next presidency -- Vice President Annette Lu (呂秀蓮), Premier Su Tseng-chang (蘇貞昌), DPP Chairman Yu Shyi-kun and former premier Frank Hsieh (謝長廷) -- were all assigned to three other prosecutors -- Hou Kuan-jen (侯寬仁), Shen Ming-lun (沈明倫) and Chou Shih-yu (周士榆).

Hou's team will also handle a similar case involving another DPP bigwig -- National Security Council Secretary-General Mark Chen (陳唐山).

Hou was the key figure behind the indictment of former Taipei mayor Ma Ying-jeou (馬英九) over his alleged misuse of the discretionary special allowance fund during his mayoral term between 1998 and last year.


The article does not mention that Hou is Ma Ying-jeou's friend and is strongly pro-Blue. The special funds, readers may recall, are funds from the government given directly to more than 6,500 public officials on the island, half of which they can use but need not submit receipts for. Abuse is widespread, and many public officials treat them as informal salary and keep the funds for themselves, as Ma Ying-jeou did. Ma's argument is that since everyone violates the law, he is not guilty. I have a certain sympathy with this argument.

Meawhile the Taipei Times also reports on the Grand Justices and their increasing wealth. One part of the article noted:
The report shows that Judicial Yuan President Weng Yueh-sheng (翁岳生), who concurrently serves as a grand justice, ranks among the three wealthiest grand justices in terms of family assets. Weng's bank deposits increased NT$3.28 million (US$99,000) to reach NT$19.25 million at the end of last year.

He was one of the senior government officials who came under fire last year over alleged misuse of special allowance funds set aside for discretionary use. The asset disclosure report shows that Weng continued to deposit his special allowance fund into his bank account last year.


A Grand Justice of the Supreme Court, after being told he shouldn't be downloading government funds directly to his account and keeping them, nevertheless continues to do it. The culture of impunity.....It's really, really time for an end to this system, and an amnesty for all public officials who benefited by it.