Chen’s son-in-law to file libel suit over share deal

A statement from the Presidential Office said all accusations Legislator Chiu Yi made against Chao Chien-min were “fabricated,” and the president’s son-in-law decided to take legal action in defense of his name.

Chiu, from the Kuomintang, has alleged that Chao has bought an apartment at a Taipei luxury residential complex at the intersections of Chienkuo North Rd. and Jenai Rd.

He has claimed that Chao had a certain “Mr Hsieh” buy the apartment on his behalf in July last year, and the developer gave the president’s son-in-law a “big discount.”

The KMT lawmaker has also claimed that Chao bought more than 20 million shares of Taiwan Development and Trust at NT$2 per share through a dummy account, and later when he sold them, he earned NT$300-400 million.

The presidential statement said Chao last year accompanied a relative on a visit to the apartment complex. But neither Chao nor the relative bought any unit there, the statement added.

Chiu’s talks about “Mr Hsieh” and the “big discount” were all “fabrications” aimed at “misleading the public,” according to the statement.

The statement said Chao knew nothing about his mother buying Taiwan Development shares.

But Chiu’s allegations that Chao had also bought Taiwan Development and Trust shares and had made huge profits were all false, the statement added. Prosecutors have launched a probe into transactions of Taiwan Development and Trust shares conducted last year after the company had delisted.

According to Chiu, those who bought delisted Taiwan Development and Trust shares included Chao’s mother Chien Shui-mien.

Chiu said no one would have bought a delisted company’s shares, which were then worth about NT$2 each, unless they had insider information concerning its future prospects.

The Taiwan Development and Trust relisted on March 1 this year, resulting in sharp increases in it share prices.

Legislator Chen Chin-jun, a whip of the ruling Democratic Progressive Party, yesterday urged Chao and his mother to explain in public their alleged stock transactions as soon as possible.

He said the latest scandal might have consequences as grave as those stemming from allegations that first lady Wu Shu-jen received cash coupons from Taipei’s Sogo Department Store.

The United Evening News cited an unnamed DPP legislator as lamenting that President Chen’s efforts in promoting Taiwan’s foreign relations during his nine-day visit to Latin America have been canceled out by the first family’s alleged involvement in a fresh scandal.

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