National Development Fund criticized for TSMC stock sale
By Kathryn Chiu ,The China Post
December 3, 2013, 12:08 am TWN
TAIPEI, Taiwan -- Taiwan government venture capital fund the National Development Fund (NDF) on Monday was reproached for selling nearly NT$1.9 billion-worth of TSMC shares to help raise funds for the headquarters of a new government agency.
The Economics Committee of the Legislative Yuan yesterday convened a meeting to deliberate 2014 budgets for the NDF. At the end of the meeting, Taiwan Solidariry Union (TSU) Legislator Hsu Chun-hsin (許忠信) held a press conference denouncing the NDF's selling of shares of Taiwan Semiconductor Manufacturing Company (TSMC) as “killing the goose that lay the golden egg.”
Hsu revealed that although the NDF garnered nearly NT$18.1 billion through selling TSMC shares, the fund faces a de facto loss of over NT$500 million in stock dividends each year.
Moreover, the proceedings from the sale TSMC's holdings were used to fund the construction of the headquarters of a new government agency. According to local media, the headquarters of the new government agency is close to Songjiang Nanjing MRT Station.
Hsu said the property deal obviously defies the mission statemet of the NDF. Per current rules and regulations, the NDF follows the industrial policies set by the Council for Economic Planning & Development (CEPD) and Ministry of Economic Affairs. The MOEA decides which industry should be promoted and developed to the benefit of Taiwan. The NDF, in turn, provides financial support that ultimately aims to encourage people within the private sectors in a given industry.
Deputy Executive Secretary of National Development Fund Su Lai-shou (蘇來守) responded that the NDF still holds a major shares of TSMC after recent selling.
Reuters earlier reported that NDF will sell more than 170 million shares in TSMC in 2014 to help fund Taiwan's budget.
The National Development Fund plans to sell the shares, worth about NT$18 billion, to four pension funds owned by the government, said the source, who declined to be identified because the matter is sensitive.