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President Chen's Remarks at Opening of International Conference on the Comparative Studies of Transitional Justice
2007-07-28

President Chen's Remarks at Opening of International Conference on the Comparative Studies of Transitional Justice.

Let's take East Germany as an example. Prior to unification, East Germany established its first ever non-Communist government, which immediately carried out actions to examine and reclaim party assets acquired improperly. In sharp contrast, nearly eight years has passed since Taiwan changed its ruling political party. To date, the issue of inappropriately obtained party assets has yet to be resolved. Some of such party assets have even been quickly sold out at unreasonably low price to prevent further investigation. As Taiwan deepens its political democratization and national normalization, it considers this point to be its biggest failing and regret. And yet, I am confident that, in the future, a national referendum on reclaiming inappropriately obtained party assets will help to strengthen the power and determination of the people. Any unprogressive opposition or political party that clings to property rightly owned by the people of Taiwan shall have to bow its head in submission.

The KMT with its inappropriately acquired assets is just like a vampire whose true identity is revealed through a mirror. No matter how much the KMT puts on airs of moral superiority, it cannot stand up to the close scrutiny of its inappropriately acquired assets. This would immediately expose its true character as being anything but democratic, not to mention shameless and wicked.

Before the presidential election of the year 2000, Lien Chan, the KMP candidate, promised with utmost sincerity to return party assets and put them in a trust. After losing the election, he left all of his promises unfulfilled. Later in the presidential election of 2004, Lien Chan made a second offer to return such KMT assets to the people and the country. Yet again, his words were not put into action just because he lost the election. Shortly after former KMT Chairman Ma Ying-jeou assumed his post, he announced that the KMT would completely take care of its inappropriately acquired assets before the presidential election of 2008. To everyone's surprise, "take care" meant disposing the assets by quickly selling them far below market value.

The KMT accrued wealth by expropriating national assets owned by the people, assuming the exclusive right to run certain businesses, collecting illegal subsidies and taxes, and receiving tax exemptions. According to an investigation by the Ministry of Finance, inappropriately acquired assets of the KMT includes real estate, as well as years of illegal subsidies, taxes, levies and appropriated pension funds. Many retirees working at the KMT add their experience there to their experience at the government so as to apply for an even greater pension. In total, it is believed that the KMT accumulated  45.172 billion NT dollars. However, the investigation is only preliminary. We could learn from East Germany, which required that all party assets must be proved legal and appropriate or else be considered as inappropriately acquired. Although the KMT has already disposed of the assets, the government will strive to recover every remaining penny, piece of land, and building. This pursuit will not end just because the assets have been sold or discarded.

We cannot help but notice that, when Ma Ying-jeou served as KMT Chairman, the management of the inappropriately acquired assets was carried out behind closed doors. Only former Chairman Ma and a few associates know the true details of the transactions. The identification of buyers and the source of their finances have never been made public. The transaction conditions and transfers obviously involve corrupt and irregular business practices.

Take the KMT's Revolution and Practice Institute as an example. This land transaction contract includes a clause for requesting the Taipei City government, which happens to be led by the KMT, to change the function and classification of the land. The sell of the KMT's three major media enterprises--China TV, Broadcasting Corporation of China, and Central Motion Picture Corp.--have been suspected from the start of being "fake transactions," "empty shells" and "planned for particular beneficiaries." Although the transactions have been referred to the court, allegations of them being sold in exchange for election nominations abound. The sell of these three enterprises remain an enigma clouded by many contradictory explanations. Such ambiguity shows that, in the process, assets in the national coffers were very likely transferred to the KMT party coffers, then later to personal coffers.

According to a KMT report regarding its assets issued on August 23, 2006, when the KMT was officially registered as an association in 1994, the net worth of its assets was 38.5 billion NT dollars. When the post of KMT Chairman was transferred from Lee Teng-hui to Lien Chan in March 2000, the net worth had increased to 80.8 billion NT dollars. By the time Ma Ying-jeou assumed the chairmanship in August 2005, the value had dropped to 31.1 billion NT dollars. According to the latest report, which was issued on July 15th this year, this figure fell to 25.457 billion NT dollars. In a short 7 years, the KMT’s net worth went from 80.8 billion to 25.4 billion NT dollars. What happened to the remaining 55.4 billion? Where has the money gone? Whose pocket has it gone into?

The management of the KMT's assets should by no means be just the party's business, nor should it be managed solely by its Chairmen or a few of their close associates. This issue cannot be swept away simply by spending all the money or making it appear to vanish. Questions still abound whether corruption, breach of trust, graft, or patronage is involved, and whether anyone involved bears legal responsibility or possesses criminal liability. These issues must be fully investigated. We support any anti-corruption campaigns; therefore, we must request the KMT to clearly explain to the public where its "vanished party assets" have gone.

Five years ago, on September 13, 2002, the Executive Yuan submitted the bill for the Disposition of Assets Improperly Obtained by Political Parties Act to the Legislative Yuan for review. However, due to the boycott by certain opposition parties, the process has yet to be completed.

Therefore, being the ruling party, the DPP last year initiated a campaign to hold a referendum to demand that the KMT return the assets. Currently, the first two legal phases for collecting signatures have been completed. Since July 4, the household registration offices across the country started verifying the collected signatures. This process should take about 45 days. Afterward, the Taiwan people will be able to vote on this matter next January in conjunction with the legislative election. Via this referendum and direct expression of civic rights, the people will be able to set this matter right and restore justice. We will once again demonstrate that the people of Taiwan remain steadfast and determined to pursue freedom, democracy, human rights and justice. I fully agree with former Prime Minister of East Germany Lothar de Maiziere's observation that the crucial step to deal with transitional justice is to obtain majority status in the parliament, so that related bills can get passed.  

In closing, I would like to once again thank Taiwan Thinktank for organizing this historically meaningful conference. May the conference be a great success, and all the distinguished guests and our friends enjoy the best of health and happiness! Thank you.

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