Cabinet, MOEA censured over China Steel bidding

The government's top watchdog body said the failures led to irregularities related to a bribery case involving a former top Cabinet official.

China Steel lacks a standard mechanism governing purchases and tenders and can therefore decide whom to sign contracts with at will, said Control Yuan member Yeh Yao-peng.

Moreover, its purchases and tenders are not overseen by the Legislature, Yeh continued, adding that this oversight led to the bribery scandal involving former Cabinet Secretary-General Lin Yi-shih.

While the Cabinet and the ministry have a say in the management appointments and operations of China Steel, they have failed to properly oversee the company's tendering process and prevent political interference, according to the Control Yuan.

Lin was indicted October last year of helping Kaohsiung based Dih Yeon Industrial Co. to secure a slag treatment contract from a subsidiary of China Steel Corp. in 2010 in his capacity as a ruling Kuomintang lawmaker, in return for NT$63 million (US$2.1 million).

Lin, who reportedly demanded a further NT$83 million from the Kaohsiung contractor in 2012 after he began serving in the Cabinet, also faces charges of demanding bribes, concealing illegal gains and keeping unaccountable assets.

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