The Control Yuan said it fined Fu because he violated the Act on Recusal of Public Servants Due to Conflicts of Interest. Fu can appeal the decision with the nation's highest watchdog body 30 days after receiving the written ruling.

Under the act, violators can be fined between NT$1 million and NT$5 million. The Control Yuan said it set the fine based on the magistrate's behavior and its impact.

Fu announced the appointment of his ex-wife, Hsu Chen-wei, as his deputy when he was inaugurated Dec. 20, just two days after the couple supposedly divorced.

The move was interpreted as a well calculated attempt to have his wife hold on to the post if he has to serve a jail term midway through his term. Fu is currently appealing a six-and-a-half-year sentence for violating securities trading regulations.

Faced with a public outcry, Fu soon revoked the appointment.