Chen-related firms targeted

They also summoned Cheng Sheng-chih, former chairman of Mega Financial Holdings, as a defendant in the alleged scam, said Chen Yun-nan, spokesman of the special criminal investigation task force under the Supreme Prosecutor Office.

Investigators raided the offices of Chinatrust Financial Holding, China Development Financial Holding, Mega Financial Holding, and Yuanta Financial Holding after the close of the stock market at 1:30 p.m. and took away cartons of evidence.

Financier Cheng was summoned for questioning

from 4:50 p.m. to 10 p.m. about his possible involvement in the extensive money laundering operations of the former first family, said prosecutor Chen.

Cheng is a son-in-law of magnate Chang Jung-fa who founded a business empire that includes Evergreen Marine and EVA Airways. Cheng had maintained close ties with the former president before he quit as chairman of Mega Financial Holding after Ma Ying-jeou was elected as new president earlier this year.

Investigators were attempting to piece together a whole picture about the sources of the NT$700 million fund held in the overseas bank accounts of the Chen family and in other people’s accounts.

Former President Chen said all the funds deposited abroad was the leftover of his previous election campaigns.

But prosecutors said campaign funds accounted for only a portion of the total sum and they have been trying to find out if enterprises or individuals had given money to Chen’s family as bribes.

Kuo Chuan-ching, chairman of Rich Development, already confessed that he had given NT$90 million to Tsai Ming-jer who transferred the money to the former first family.

Former Interior Minister Yu Cheng-hsien was detained after Kuo told prosecutors that it was Yu who game him

the name list of a panel for evaluating and awarding the contract for the project of building the Nangang Exhibition Hall well in advance for a competitive edge over other bidding firms.

Among others, the overseas bank accounts of Kuo and his sister had been used to accommodate the deposits of the Chen family.

The prosecutors have been looking for evidence that portions of the money came from the top executives of financial holding firms when they were competing neck to neck to acquire other financial holding.

Ignoring advice and opposition, former President Chen had fervently pushed ahead the so-called “second-phase financial reforms” by setting a time frame to swiftly slash the number of Taiwan’s financial holding firms by half.

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