Control Yuan begins probe into TaiMed Biologics case

2012/01/31Taipei, Jan. 31 (CNA) The Control Yuan has opened an investigation into alleged irregularities surrounding the government's investment in biotechnology company TaiMed Biologics Inc. in 2007, a case that was played up during Taiwan's recently concluded presidential election. Control Yuan member Yeh Yao-peng said Tuesday that he has begun reviewing relevant documents but would not decide whether to interview the person involved in the case until after studying all available information. The "person" he was referring to is Democratic Progressive Party (DPP) Chairwoman Tsai Ing-wen, who was attacked by the rival Kuomintang (KMT) for her role in the TaiMed case during her run for the presidency late last year. Tsai was eventually defeated by President Ma Ying-jeou in the Jan. 14 presidential election. "I have no presumptions," Yeh said, but he indicated his investigation would focus on whether the National Development Fund's investment in TaiMed was handled based on the law. During the presidential campaign, KMT Legislator Chou Yi filed a complaint against Tsai with the Control Yuan, the government body responsible for investigating the behavior of public officials and public agencies. Chou accused Tsai, who was vice premier in early 2007 when the TaiMed investment was being considered, of illicit behavior by having the National Development Fund invest in the biotech company without following legal procedures. Chou claimed that Tsai improperly circumvented the National Development Fund management committee in authorizing the injection of funds into the TaiMed project by endorsing a classified proposal by then Minister without Portfolio Ho Mei-yueh. On Sept. 5, 2007, TaiMed Biologics completed its company registration in Taiwan with paid-in capital of NT$660 million, and one week later, Tsai, who had stepped down as vice premier four months earlier, became TaiMed's first chairperson. During her tenure, Tsai had a family-run enterprise invest in the company to bridge funding shortfalls and then sold the shares when she resigned as the company's chairperson less than a year after taking the job to become chairwoman of the DPP. The KMT charged that Tsai earned a profit of at least NT$10 million (US$338,000) on the stock sale, and said it constituted an illicit gain and a conflict of interest after having pushed through the project as a government official. Tsai strongly denied any wrongdoing in the case during her campaign and accused the KMT of smear tactics to boost the chances of the incumbent president.