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Taiwan: Dirty politics as usual
By Laurence Eyton

TAIPEI - Whoever said that Christmas is a time for giving probably had something in mind other than large wads of cash in plain envelopes. These were, however, the seasonal gifts that found their way into the possession of an embarrassingly large number of city councilors in Taiwan's second-largest city as incentives to vote for one of their number, Chu An-hsiung, a political independent, as speaker of the council in elections held on Christmas Day.

The scandal that has erupted around the Kaohsiung Speaker vote is almost wearily familiar as part of Taiwan's corrupt local politics as usual. What makes it remarkable is the size of the corruption, the determination of the local prosecutors to get to the bottom of the case and the volume of evidence that is amassing from those who were involved.

It is also interesting because its chief protagonist is almost a textbook example of the wheeler-dealer politician-businessman who dominate Taiwan's political life, because the case itself shows the effort of the major parties to try and distance themselves from what are euphemistically known as "traditional political practices" and a rising anger on the part of the public at such shenanigans that might express itself in a disillusionment with democracy - the development of which in the past decade is, in many eyes, Taiwan's chief claim on the world's respect.

Chu An-hsiung's career is typical of his class. He started off as an accountant in the Formosa Plastics Group. He entered politics in 1973, when the then governing Kuomintang (KMT) was still largely composed of exiles from mainland China but local elections were being opened up for ambitious Taiwanese willing to toe the party line. Chu won a set on the Kaohsiung City Council. After two terms there he won a seat on the now defunct Taiwan Provincial Assembly from where he was elected by the assembly to the Control Yuan, Taiwan's supreme government watchdog body. Meanwhile his wife used the family's clout in Kaohsiung to get herself elected as a legislator. From the mid-1980s until the Asian financial crisis in the late 1990s, the Chus used their political influence along with their business connections to build their An Feng Group into Taiwan's third-largest steelmaker.

Chu retired from the Control Yuan in the early 1990s and returned to Kaohsiung City Council where he continued to wield formidable influence while his wife concentrated on running the business. The Asian financial crisis, however, proved the couple's financial undoing when An Feng defaulted on its debts, precipitating a crisis at the Pan-Asia Bank.

It's an interesting illustration of Taiwan's crony capitalism at work that at the time of the crisis, the KMT's financial supremo at the time Liu Tai-ying, decided to make an NT$2.5 billion (US$72 million) investment in An Feng, despite the fact that experts thought the company beyond saving. And yet later the same year, Chu broke with the KMT and ran for reelection to the council as an independent.

An investigation of the affairs of the An Feng Group resulted in Chu and his wife being indicted in 2000 on charges of embezzlement, forgery and tax evasion. The two were accused of stealing an enormous NT$20 billion from their own company. And yet last year Chu ran again for election to the city council and was elected on December 3, probably much to his relief since, under Taiwan law, a prosecution cannot proceed against an elected official during the period the body he is elected to is sitting. This has created such a narrow window of opportunity for Chu's case to be heard that so far there have only been two hearings and it is quite possible the matter would not be resolved for a decade - if Chu is able keep his seat.

Certainly he was determined to do so at the election on December 7, so much so that he asked employees and business colleagues to re-register their households in his constituency so that they might vote for him. The 1,000 votes he is believed to have got in this way, along with other votes he is alleged to have straightforwardly bought for NT$500 each, allowed him to just scrape back on to the council.

There is, by the way, also a case being prosecuted against Chu for vote-buying. The main prosecution witness is one Cheng Ming-ching, himself a former city councilor and one of Chu's zhuang jiao, or vote-buyers.

Chu has always been a political opportunist. He was in the KMT because that was the party with the power and the money. When that power and money no longer supported him he became an independent, basically a mercenary political wheeler dealer whose formidable services were for hire.

Unsurprisingly, as the Democratic Progressive Party (DPP) became the ruling party at the central government level, won the mayoralty in Kaohsiung and became the largest party on the city council, Chu stated flirting with the DPP.

It was to the DPP he turned after his election to plot the next part of his political strategy - his accession to the speakership. The deal with the DPP was that he would join its caucus and support the party's candidate for deputy speaker in the election held among the councilors on December 25 if the party supported his own bid for the speakership.

Three days before the election took place, however, the DPP's central party headquarters got wind of the deal, decided that Chu had too dirty a reputation for the party to be seen supporting him and quashed the arrangement. President Chen Shui-bian himself, in his role as DPP chairman, promised the direst consequences would follow upon any DPP city council caucus member's voting for Chu on the 25th.

Chen got his way - though it was so touch and go that the party's secretary general, Chang Chun-hsiung, attended the council chamber to witness the vote in person and DPP councilors were ordered to show their ballots, to reveal who they voted for. Chu, however, also got his way, since nearly all the other members of the city council from the KMT, the People First Party (PFP) and the independents voted for him anyway.

The result stank. There had, even before the election took place, been rumors that Chu was offering councilors NT$5 million each for their votes. And KMT councilors had already been ordered by their party to vote for themselves, the customary form of abstaining. Only five days before the vote, the KMT's chairman, Lien Chan, had made a major policy speech in which he claimed that the party's association with what is known locally as "black gold", by which is meant the nexus of money politics, corruption and organized crime that has been a feature of Taiwan politics and those of the KMT in particular, was at an end. The KMT was now clean, he said, a claim that fate greeted with a Bronx cheer on Christmas Day. The position of the PFP, a party of shady KMT renegades with even financial backing from even shadier tycoons based in central Taiwan, was no better.

Given the allegations about vote-buying prior to the election, there can be little surprise that the central government, believing the DPP councilors to be uninvolved, launched a huge investigation of the vote involving the Kaohsiung District Prosecutors' Office and the Ministry of Justice Investigation Bureau, Taiwan's equivalent of the US Federal Bureau of Investigation. After simultaneously raiding more than 30 locations in Kaohsiung and discovering name lists and sums of money they believed to have been either intended as or used for bribes, Chu and his wife were detained a week ago. But the real revelations had hardly even started.

The prosecutors prompted a flood of information late last week by on Thursday offering a 48-hour amnesty to councilors who admitted to taking bribes, returned the money, and were willing to give evidence about the matter. At the time of writing some 10 councilors had taken advantage of the offer, while another five were hoping to have it extended to them.

Much of what they have revealed is still under wraps. But from what has been said it is becoming clear that the events in Kaohsiung over Christmas will provide the most thorough study yet of Taiwan's corrupt local politics at work.

From what the prosecutors' office and other sources have revealed, Chu is alleged to have had a fund of NT$300 million to buy up votes at up to NT$6 million each for the speakership election and NT$2 million for the deputy speakership being contested by Tsai Song-hsiung, another independent councilor.

What makes the speakership and deputy speakership worth spending nearly US$10 million to acquire? Because they provide automatic positions on the city's Urban Planning Commission, a small body that administers city zoning, and provide huge influence over the granting of contracts in infrastructure projects. It is no coincidence perhaps that Kaohsiung has just stated work on a mass rapid transit railway project valued at NT$170 billion, nor that Chu's business milieu is steel and construction. It has been alleged by Kaohsiung legislators that Chu was hoping to manipulate the mass rapid transit project, though whether for his own benefit or as the agent of someone else is still not clear.

Also to be revealed is the role of radio station Happy Radio FM97.5, whose general manager Huang Hsin-chung is accused of being Chu's bagman for the bribes.

The details of the case, and once it gets to court they will be voluminous, are perhaps less important outside Taiwan than other things the case reveals. For one thing, it shows how little control central party organizations have over their members - the KMT ordered its councilors not to vote for Chu but 11 out of 12 did so anyway, as did six out of seven of their similarly directed PFP counterparts. As a result, any stated determination by the party center to eradicate "black gold" at the local level has to be seen against the indifference of local politicians to party central's opinion. The KMT said that any councilor who admits to having taken a bribe will be expelled whether they are prosecuted or not, and on Tuesday it expelled seven. That is not, unfortunately, very worrying for corrupt councilors. Most of the independents on the council, including Chu An-hsiung, are people who split from the KMT without it damaging their careers. As long as they can beg or buy enough votes, party support is of little consequence.

Given that the Kaohsiung debacle has made the KMT's "clean hands" claim a laughing stock, there had to be a fall guy: James Chen, head of the party's Organization and Development Committee. Chen's fall from grace was indicative of the tension between the KMT's traditional methods and its new ideology; Chen was a traditional machine politician who, while well aware of what was going on in Kaohsiung didn't see anything particularly wrong with it. These kinds of deal have always been done so that councilors could recoup their election costs - something even more important now that direct party election subsidies have been seriously reduced - the KMT's revenues have fallen dramatically since it lost office at the national level. Chen simply didn't realize that times are changing - that the greatest burden the KMT faces at in the 2004 presidential election is its reputation for corruption and that the party chairman's anti-corruption drive was supposed to have been taken seriously - unlike so many in the past.

One question being posed about the case, however, concerns the amnesties. Since councilors can only lose their seats if they are convicted of corruption, the amnesties for those who come forward as confession-bearing witnesses mean that what Kaohsiung will soon be left with is a council of whom it is known that two-thirds of its members are corrupt bribe takers but who will be allowed to conduct council business for the next four years until the voters can, if they so desire, boot the rascals out.

For some, this kind of impunity leaves a bad taste in the mouth; the Ministry of Justice has been criticized for pursuing the truth about the corruption rather than justice meted out to the corrupt. Almost certainly it is a political decision - though the ministry of course denies it. The idea is, of course, that, given that the DPP councilors are by and large clean - after all they didn't vote for Chu - there is far more to be gained politically by bringing as much dirt surrounding opposition party councilors to light as possible than there is from trying to get these characters jailed.

This strategy may have blowback of two different kinds. The first is that the DPP caucus on the council are almost certainly not as clean as they appear - the first suspected bribe money to be found by investigators was, after all, at the house of the DPP council caucus leader Jan Yung-lung.

The second potential problem is an extension of this, namely that, in the public eye, it is not the opposition political parties that are seen as especially corrupt and reprehensible, but rather the venality and malfeasance is ascribed to "politicians" in general, irrespective of party affiliation. And this has serious implications for the nation as a whole. It is not that Kaohsiung is a turning point. Rather it is another brick in the wall of public indifference to the political process and skepticism about the benefits of democracy.

In the bad old pre-democratic days, political life was crony-dominated and crony-driven, as everybody knows. The problem is that it still appears to be. And Taiwanese are beginning to think that all democracy has brought about in Taiwan is a weak vacillating government at the central level and economic decline. There is a thickening strand of public opinion that suggest that the orientation of the past 12 years in Taiwan toward democratization and increasing political rights, has been mistaken and that a little less democracy and a little more concentration on the economy might have been a better strategy.

This feeling is too nebulous, perhaps, to be of serious significance yet. But if the economic bad times continue, it may grow. And if it does, Taiwanese will look west to China's booming economy. Perhaps, people will increasingly wonder, doing a deal with the mainland on unification might not be such a bad idea after all. True, it might erode the democratic system, but this has been - so the thinking goes - of dubious benefit anyway.

For the past decade Taiwan has always set itself apart from mainland China with reference to its democratic system. The irony is that, just as the world is taking greater notice of this, just as there is a US president in the White House prepared to "do whatever it takes" to preserve that system, Taiwanese are increasingly wondering if the system is all it has been cracked up to be, and whether it might be traded, in part for something a little more economically secure.

(©2003 Asia Times Online Co, Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)
 
Jan 9, 2003



 

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