KMT Press Release: Party Assets

Press Release

April 24, 2007


According to media reports, the DPP administration will adopt a series of criticisms about the KMT’s party assets. The KMT hereby issues the following solemn statement and questions:

A.Statement
1. The existence of KMT party assets had a historical background and played a great contribution: The KMT cooperated with the government’s policies and Taiwan’s economic development, and invested in culture and production operations. Since moving to Taiwan from the Chinese mainland, the KMT helped the government bring the gold reserves and great treasures of the National Palace Museum to the island, which indeed contributed to the financial stability of the country and the preservation of the Chinese culture. In the 1970s and 1980s, the party-controlled businesses provided the necessary capital for the high-tech industry in the name of national economic development. Financial support of party-operated businesses to some nearly bankrupt enterprises and financial institutions was one of the important reasons why the Asian Financial Crisis did not seriously affect Taiwan in 1997.

2.The principles of handling party assets and difficulties encountered:

(1)
1. The KMT handled its party assets with four principles, namely, “legality,” “fairness,” “public interest,” and “openness.” Real estate currently registered under the name of the KMT was legally obtained through donation or transfer according to then laws and regulations, but the KMT was willing to donate them to the government in the spirit of democracy and public accountability. Up to the present date, most of donations have already been completed.
2.Following the instructions of former Chairman Ma Ying-jeou, the KMT is no longer in operation of party-controlled businesses. The case of the Central Investment Co. will be sorted out before the end of June this year.

(2)
In recent years, income from the handling of KMT party assets mainly went to the pensions of thousands of retired party workers and the salaries of current personnel, as well as necessary everyday expenditures of the party. However, the KMT has been constantly under attack by the DPP administration through suppression, obstacles, and blackmail, even though the KMT has handled its party assets in conformity with the four principles of “legality,” “fairness,” “public interest,” and “openness.”

3.Under the party-state system in the early days, the KMT also provided many kinds of services for the government. Through this, the KMT obtained real estate and financial funding through a quid pro quo. However, all party assets were obtained through legal procedures that were budgeted by relevant government agencies with the Legislative Yuan’s approval. These were definitely legal, such as the financial support given to the Central Daily News by the Ministry of Education, and the Broadcasting Corporation of China by the Ministry of Transportation and Communications. Claims that the state treasury was interchanged with the party treasury are absolutely untrue.

4. The KMT had always paid taxes according to laws, and it was intolerable for the DPP administration to accuse the KMT of “enjoying” tax reduction.
(1)According to the Ministry of Finance’s explanations of the official letter Series Tai Chai Shuei, No. 780249145 of 1989, political parties were not required to declare income tax to the government, and the KMT was not the sole political party that benefited from this rule. The DPP has also “enjoyed” the tax exemption for 20 years since its establishment. Obviously, all political parties have followed the orders of the government. Why did the DPP administration always frame the KMT? Furthermore, since 2006 the KMT has always declared the income tax following a new tax rule of the Ministry of Finance according to the ministerial order Series Tai Chai Shuei, No. 09304547170 of 2004.
(2)On housing and land taxes: The KMT was exempt from tax according to Article 8 of the Regulations Governing Land Tax Exemption and Article 15 of the Housing Tax Act, which stipulate that self-owned land and houses are exempt of taxes if they are self-used, and the KMT paid taxes for other assets by law. These rules were applicable to all non-profit groups and political parties.

5.The DPP administration falsely accused seven civic associations, including the National Women’s League, of being affiliated organizations of the KMT. This was absolutely untrue:
(1)The DPP administration falsely accused the National Women’s League, the China Youth Corps, the Republic of China’s Public Service Association, the World League for Freedom and Democracy ROC Chapter, the Chinese Association for Relief and Ensuing Services, the Association for Social Harmony, and the Grand Alliance for Reunification of China under the Three Principles of the People, of being KMT-affiliated organizations. The DPP administration went so far as to say the financial support and commissioned matters of these organizations were not from the government but from the KMT.
(2)After the KMT checked the respective history of these organizations, it found that the National Women’s League was established in 1950, the China Youth Corps in 1952, the ROC Public Services Association in 1962, the World League for Freedom and Democracy ROC Chapter in 1954, the Chinese Association for Relief and Ensuing Services in 1950, the Association for Civic Harmony in 1980, and the Grand Alliance for Reunification of China under the Three Principles of the People in 1982. All these aforementioned bodies were registered with respective authorities under the administration of the Executive Yuan as independent, non-profit organizations, which had their own auditing and accounting as well as personnel. They were financial subsidized and commissioned by each authority, and all facts were supported by evidence. These organizations are not related to the KMT! This false implication made by the DPP administration was deliberately intended to cause trouble.
(3)According to the “Guidelines for the Interchangeable Serving Tenures between Civil Servants and Personnel of the ROC’s Public Service Association,” before December 3, 1987, any retired civil servant who had served in the KMT could choose retirement in the government or the KMT with interchangeable tenures to count for pensions, and vice versa. Up to the present date, more than 2000 civil servants who were qualified applied for KMT pensions.

B.By the aforementioned statement, the KMT hereby questions the DPP administration as follows:
1. Why has the DPP constantly treated the KMT party assets as the ATMs (Automated Teller Machines)?
(1)Squeezing credits: For example, the Taiwan Business Bank squeezed billions of NT dollars credits out of the Central Investment Co. Could any private company sustain such suppression from a bank?
(2)Disturbing the handling of party assets: It was legal business behavior for the KMT to handle the sale of party assets, but the DPP administration tried to employ every means to deter any potential buyer. Should the KMT report to the First Family for the sale of party assets?
(3)In fact, the DPP administration is the least willing to see the sale of KMT party assets because as long as the KMT has not completed the sale of all its party assets, there will be an issue of party assets for the DPP to manipulate in the election.

2. Now, the DPP administration is undisguisedly trying to interfere with the handling of party assets through administrative means such as the Ministry of Finance with a constant neglect of the shrinking economy, and letting economic criminals go unpunished. May we ask: will the DPP continue to cheat the voters and to win the next elections by relying on these low-esteemed “official achievements” after their incompetent governance for the past seven years?

Attachment : none