Watchdog body urged to probe controversial arms company formation
ROC Central News Agency
Taipei, July 18 (CNA) Legislator Lin Yu-fang of the ruling Kuomintng (KMT) called on the Control Yuan Friday to investigate suspected irregularities surrounding the formation of the disbanded private arms firm "Taiwan Goal" with investment from various government agencies.
"I will deliver a report concerning the initial investigation into the controversial arms company to the nation's watchdog body so that it will continue to deal with the case, " said Lin, who convenes a legislative task force in charge of probing Taiwan Goal's formation and military exchanges with foreign countries.
Taiwan Goal's formation did not become public until a local newspaper reported the company's existence in mid-February. It disbanded in mid-March.
The Ministry of Economic Affairs (MOEA) later confirmed that Taiwan Goal had registered on Jan. 28 as a private company, with capital of NT$1 billion (US$31.30 million) and paid-in capital totaling NT$80 million.
Wu Nai-jen, a heavyweight of the then ruling Democratic Progressive Party and head of China Steel Machinery Corp., served as chairman of the company.
MOEA data also showed that Taiwan Goal had a seven-member board of directors, with three seats held by the MND, which was to become the company's largest shareholder with a 45 percent stake.
The launch of the company drew flak from opposition lawmakers, who questioned whether it had been registered as a private firm to avoid legislative oversight, although most of its funding was believed to have come from the MND or state-owned companies.
"Former Vice Premier Chiou I-jen participated in the preparatory process of the controversial arms firm during his stint as secretary-general of the National Security Council (NSC), " Lin charged.
Noting that the NSC is only an advisory body under the Presidential Office, Lin asserted that Chiou had no power to direct the executive branch to make necessary preparations for the establishment of Taiwan Goal.
Lin further claimed that Chiou wanted Wu to serve as the company's chairman, and Wu was allowed to attend the Cabinet's internal meetings and hear relevant briefings delivered by officials of the MND's Armaments Bureau, which the lawmaker said infringed upon procedural justice and administrative ethics.
"Chiou should be impeached by the Control Yuan and should not be forgiven just because no corrupt practices have been found so far, " Lin claimed.
He said that although former President Chen Shui-bian did not get involved in the arms firm's formation, he was briefed on the progress of its establishment.
Lin said Chen wanted Chiou to push forward with the plan and name the company Taiwan Goal, so he should bear full responsibility.
Chen defended the formation of the private firm to make arms purchases, saying that there were precedents in foreign countries to set up privately run arms procurement companies.
He said Taiwan faces difficulties in obtaining advanced arms or weapons systems from industrially advanced countries via official channels, given the country's constrained diplomatic situation.
In response to Lin's remarks, Chiou said he broached the idea of setting up the arms procurement company when serving as NSC secretary-general, but he began the planning work after assuming the vice premiership.
Chiou said that he neither "directed the executive branch" nor infringed upon administrative ethics and procedural justice in the preparatory process of the company.
The formation of the controversial company resulted in the resignation of the then Minister of National Defense, Lee Tien-yu, due to heavy and lengthy complaints by KMT legislators. (By Luis Huang) enditem/ls
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