Prosecutor Wu Chao-ying, concluding a probe into alleged irregularities in Formosa Telecom Investment’s finances, indicted DPP Legislator Ker Chien-ming for breach of trust and violation of the accounting law.

The prosecutor said that false transactions in the case resulted in Ker settling a NT$12 million debt he owed the company — which was set up to raise funds for the establishment of Formosa TV — without ever paying it back.

But DPP Secretary General Wang Tuo questioned whether the indictment of Ker was not a case of persecution. According to the indictment, Ker was president of Formosa Telecom in 1997 when he borrowed a check of NT$12 million from a friend, Lin Yuan-hsi.

Ker then used the check as collateral to cash in NT$12 million from the preparatory office that Formosa Telecom was running for the establishment of a subsidiary.

The subsidiary later failed to be set up, and the head of the preparatory office returned all of its cash, plus Ker’s check to the parent company.

Ker then devised a short-term investment ploy in order to settle the NT$12 million unpaid debt he owed Formosa Telecom.

He managed to have the company agree to use NT$32 million to purchase the shares of another company “Lung Yuan.”

He then worked out an under-the-table deal with Lung Yuan in which the actual stock transaction was worth only NT$20 million, instead of the NTY$32 million that Formosa Telecom had agreed to pay.

Formosa Telecom then used the NT$12 million check, plus NT$20 million in cash for the purchase of Lung Yuan shares.

Commenting on the indictment, the DPP secretary general urged President Ma Ying-jeou to consider whether the government is not giving impression that it is “abusing the law for persecution.”

Wang said the DPP has always hoped that the judicial and law enforcement institutions can remain impartial.

He said if Ma really is seeking reconciliation with the opposition, he should “give it careful consideration.”

Last October, the Taipei District Court sentenced the former chairman of Formosa Telecom, Chang Chun-hong, to 11 years in jail after finding him guilty of cheating the company out of a total of NT$150 million in 2000 and 2003.

Chang responded to the verdict by claiming that the judiciary was not independent. He is appealing against the verdict.

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