OWNERSHIP SWAPS?The DPP’s Lin Chun-hsien raised questions at a news conference about the ownership and management of Chung Hsin Electric and Machinery Corp

Taipei Times
Date: Sep 09, 2016
By: Chen Wei-han / Staff reporter

The Chinese Nationalist Party (KMT) has laundered some of its ill-gotten party assets by transferring the ownership of a party-run machinery corporation to two private companies, Democratic Progressive Party (DPP) Legislator Lin Chun-hsien (林俊憲) said yesterday.

Lin’s allegation was backed by Liu Chao-yi (劉昭毅), son of former KMT investment boss Liu Tai-ying (劉泰英).

Chung Hsin Electric and Machinery Corp (中興電工), founded in 1962 by the then-KMT-owned China Development Industrial Bank (中華開發工業銀行) and Central Insurance Co (中央產險), was 100 percent owned and run by the KMT, but the party transferred its ownership as it tried to hide its assets from government oversight, Lin told a news conference in Taipei.

Chung Hsin chairman Chiang Yi-fu (江義福), who was appointed by Liu Tai-ying in 1996, in 1998 used the company’s funds to establish two investment firms, Jih Jih Hsing Co (日日興) and Sheng Yuan Co (盛元), Lin said.

Those two firms then bought Chung Hsin shares and took over ownership of the machinery company from China Development and Central Insurance to whitewash Chung Hsin’s affiliation with the KMT and turn party assets into private ones, he said.     [FULL  STORY]