On the controversial Taisugar appointment

The controversy over the appointment of the president of the state-run Taiwan Sugar Company (Taisugar) has soured the relationship between P.K. Chiang, board chairman of the Straits Exchange Foundation (SEF), and Wu Jung-ming, chairman of the Taisugar. It has been reported that Chiang strongly recommended the promotion of his nephew, Chen Ching-pin, currently vice president of the Taisugar, to the post of presidency while Wu favored a former high official of the Taipei city government to take over the post. Wu insisted that he had the power to find a president who can work with him and be held jointly responsible for their management performance. According to local media, Wu has tendered his resignation for the matter. Later, on Nov. 20, Chiang publicly apologized for his “unintentional remarks” that have created problems for Wu.

On the other hand, Chen Ching-pin, the vice president, stressed that he had worked at Taisugar for 32 years, rising steadily from the basic echelon through hard work without deriving any benefit from his uncle. As pointed out by the Ministry of Economic Affairs, since Wu, the board chairman, is an outsider, it is better to appoint an insider as the president to soothe the feelings of the staff and workers of the Taisugar. Besides, with his expertise, Chen can certainly help Wu manage the enterprise. A representative of the union of workers at Taisugar even suggested that, for the benefit of the company, both the board chairman and the president should be “insiders”.

Some local media sided with Wu in charging Chiang with nepotism, asserting that the appointment of Wu was originally intended to make the enterprise a non-partisan and effectively-run business.

In fact, both sides need to present more information about the credentials of the two recommended appointees to enable the public to make a sound judgment. But, based on what has been said above, Chen appears to have the qualifications for the post of presidency. Although Wu is known for being a decent and capable politician, what qualifies him professionally to be the head of Taisugar, a very specialized enterprise? Is this basically a political appointment then, because Wu is a close aide of James Soong, chairman of the People First Party, a strong ally of the ruling Kuomintang?

As a person without much knowledge of the sugar business, does Wu need someone like Chen, who will help him not only build a relationship with the staff of the Taisugar but also familiarize himself with running the sugar business? It should be easily understandable that when two top leaders—-the board chairman and the president—- are “outsiders,” it is very hard for people at Taisugar to swallow it.

Finally, if Chen proves adequate in serving as the president, there is nothing wrong with Chiang recommending him even though they are related. So, the real question is whether or not the new president will contribute to the development of the Taisugar, not that Chiang should not recommend Chen simply because he is his uncle.

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