News Analysis: Lin Wen-Yuan Named Co-defendant In Ah-Bian’s Corruption Cases

News Analysis

Lin Wen-Yuan Named Co-defendant In Ah-Bian’s Corruption Cases

Source: Taipei newspapers Feb. 7, 2008

The Special Investigation Unit (SIU) of the Prosecutor-General’s Office yesterday announced that Lin Wen-yuan, former chairman of China Steel Corp., was named co-defendant in the investigation of corruption and money-laundering cases of former President Chen Shui-bian and his wife Wu Shu-jen.

According to media reports, the SIU hopes that the investigations of the Chen family’ corruption and money-laundering cases will be closed before the end of March.

In a press conference last night, SIU spokesman Chen Yun-nan said that the SIU deemed it necessary to name Lin Wen-yuan co-defendant for further investigation because the prosecutors received information indicating that he had allegedly funneled benefits to the Chen family while serving as chairman of China Steel Crop.

It is reported that when appearing before the SIU for questioning, Michael Ma, Chief Operating Officer of Yuanta Financial Holding Company, admitted that Lin had acquired four luxury condos at Yi Ping Yuan, with a 40% discount, through Tu Li-ping, board member of Yuanta Financial Holding Company. Ma told the prosecutors that Lin had mentioned that he acquired the two condos at Yi Ping Yuan on behalf of Wu Shu-jen.

During the investigation, the SIU found that the Chen family had “flipped” the two condos for a profit of at least NT$ 100 million (US$ 2.97 million).

According to media reports, it was Lin Wen-yuan that paid all the money for the condos at Yi Ping Yuan for the Chen Family. The SIU suspected that Lin Wen-yuan had played an important role in assisting the Chen family in laundering money.

However, Lin stressed that he had no idea about the sources of Wu Shu-jen’s funds in acquiring the condos when he appeared before the SIU for questioning last month.

According to the Code of Criminal Procedure of the Republic of China, an indictment is needed to bring any case to court for trial. In Lin’s case, he has not yet been indicted.

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