Taipei Times: KMT figures investigated in fraud case

Prosecutors are reportedly investigating Chinese Nationalist Party (KMT) Legislator William Tseng (曾銘宗) and former KMT legislator Lo Shu-lei (羅淑蕾) over suspected involvement in alleged financial fraud at New Site Industries (NSI).

The Chinese-language Mirror Media weekly yesterday reported that Tseng, at a meeting in his office on April 11 last year, pressured the representatives of three state-owned banks to extend the loan payment terms of NSI’s owners Yang Wen-hu (楊文虎) and his wife, Wang Ying-chih (王音之).

Tseng, a former head of the Financial Supervisory Commission (FSC) and a former general manager of Taiwan Cooperative Bank who was KMT secretary-general at the time, persuaded the banks to extend the payment terms for three months, which caused a delay in the investigation into the alleged fraud and allowed NSI’s owners to flee the country in June, the report said.

The meeting was reportedly attended by Wang, along with the general managers of Taiwan Business Bank, First Commercial Bank and Hua Nan Bank.

An indictment issued on Jan. 9 showed that the three banks provided a total of NT$13.6 billion (US$453.243 million at the current exchange rate), or 36.9 percent of the NT$38.6 billion in loans on which the company defaulted.

Tseng denied Mirror Media’s allegations, after saying in a statement on Tuesday that he was doing his job as a legislator to help the public in financial matters involving banks and small and medium-sized enterprises.

Tseng also denied that he knew Yang and Wang.

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