Minister quits over arms firm

In a statement posted on the Ministry of National Defense’s Web site, Lee said he had been given the mission to set up the company, Taiwan Goal, but had failed to materialize what had been aimed at.

“Instead there have been concerns and doubts (over Taiwan Goal) from all walks of life,” said Lee, who assumed the post in May 2007. “I feel deep regret, and have submitted my resignation.”

Premier Chang Chun-hsiung later approved the resignation, and appointed former Vice Defense Minister Tsai Ming-shian to replace Lee, Cabinet Secretary-General Chen Chin-jun said.

Since news broke that the military had formed Taiwan Goal earlier this month, critics and the opposition camp have questioned the motives behind the move.

While the government has maintained that the company is meant to help upgrade the island’s arms industry, it has been alleged that its status as a private firm will prevent it from parliamentary monitoring.

With billions of dollars expected to be involved in its operations, critics claim that Taiwan Goal could be manipulated by individuals seeking personal gains.

Lee’s departure has also spelt the imminent end to Taiwan Goal, as the Cabinet said it has decided to withdraw from the project.

Wu Nai-jen, a heavyweight of the ruling Democratic Progressive Party (DPP) who is chairman of Taiwan Goal, said he will call a shareholders’ meeting to discuss the disbanding of the company.

Kuomintang legislators responded to Lee’s resignation by saying that he had made the correct decision.

“The decision shows that Lee still has a conscience,” claimed Legislator Fei Hung-tai, Kuomintang (KMT) caucus whip. “It was a correct decision.”

Fei said he was not surprised that Lee would resign because the forming of Taiwan Goal to control the nation’s arms purchases and its arms industry was a wrong move.

But the defense minister had to carry out the order under pressure from President Chen Shui-bian, the KMT whip said.

“The matter has shown President Chen’s greed and disrespect for the military,” Fei claimed. “Chen wanted to benefit his own friends.”

The company, with the defense ministry as its biggest shareholder, was formed without the military’s investment budget for the business having been approved by the Legislature, Fei pointed out.

It has been speculated that Wu’s heading the company was a form of political reward from President Chen.

DPP presidential candidate Frank Hsieh’s campaign spokesman Hsu Kuo-yung expressed regret over Lee’s resignation.

But Hsu said he hopes there can be discussion on how a such companies as Taiwan Goal can become part of the national institution.

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