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Premier approves defense minister's resignation

ROC Central News Agency

2008-02-23 14:23:22

    Taipei, Feb. 23 (CNA) Premier Chang Chun-hsiung has approved the resignation of Minister of National Defense Lee Tien-yu, Executive Yuan Secretary-General Chen Chin-jun announced Saturday.

    Chen also said he would convene a news conference at the Government Information Office later in the day to explain Lee's resignation.

    Lee offered to resign in a news release posted on the Ministry of National Defense (MND) Web site earlier in the day in which he said that he felt "deep regret" over the controversy surrounding the formation of the private arms firm Taiwan Goal.

    Lee said he had set his mind to implementing the nation's defense policy and upgrading its defense capability ever since assuming the post last May. "Although I was instructed to establish Taiwan Goal, I have failed to carry out the plan properly and have caused misgivings among the public about the project, for which I have to step down, " Lee's statement said.

    Chang said earlier that same day that whether the MND should continue to invest in Taiwan Goal should be given careful reconsideration. "I think it is necessary to reconsider whether the MND should go on as scheduled to invest in a 45 percent stake of the company, " Chang said. "If we think it is improper for the MND to invest in the company, then it should not invest," the premier went on, amid harsh criticism from the opposition-controlled legislature that the formation of the arms firm is aimed at dodging the supervision of the legislature even though most of the funding comes from government agencies and state-owned corporations.

    Attending an international seminar on the 228 Incident earlier in the day, Chang said that although the MND plans to hold 45 percent of the company, it has yet to submit an investment proposal to the Executive Yuan and the funding has not been channeled into the project or revived by the public.

    Chang noted that until such time that the MND's funds are channeled into the project, the company is still privately owned and that the Cabinet therefore has no legal authority to disband the company.

    Taiwan Goal completed registration with the Ministry of Economic Affairs (MOEA) Jan. 28 as a private company, with capital of NT$1 billion (US$31.15 million) and paid-in capital totaling NT$80 million, and with Wu Nai-jen, a DPP heavyweight and head of China Steel Machinery Corp. -- a subsidiary of the formerly state-owned China Steel Corp. -- serving as chairman of the company.

    MOEA data shows that Taiwan Goal has a seven-member board of directors, with three seats going to the MND.

    Taiwan Goal is registered to deal in a variety of businesses, including the import and export of arms and weaponry systems; sales of garments and accessories, industrial explosives, precision instruments, and batteries of all types; and product design, according to the MOEA.

(By Lilian Wu)

ENDITEM/J