Government may sue labor pension fund manager
November 2, 2012, 12:12 am TWN
TAIPEI--The government is negotiating with a contracted manager of the Labor Pension Fund on compensation for investment losses and will not rule out the possibility of filing a civil suit against the investment management company, Labor Affairs Minister Pan Shih-wei said Thursday.
The Labor Pension Fund and Labor Insurance Fund together incurred over NT$100 million (US$3.42 million) in losses in 2010 after two firms contracted to manage the funds invested in shares of Ablerex Electronics Co., a leading manufacturer of uninterrupted power supplies that was involved in a stock price manipulation scandal.
While the NT$50 million losses suffered by the Labor Insurance Fund have mostly been compensated, the Council of Labor Affairs is still negotiating compensation with ING Securities Investment and Trust Co. over the NT$81 million losses suffered by the Labor Pension Fund, Pan said.
Huang Chao-hsi, chairman of the Labor Pension Fund Supervisory Committee, said the government is insisting that ING must provide full compensation for the losses, but the company has only agreed to pay NT$13 million.
If the two sides fail to reach a settlement over the next few days, the CLA will file a civil suit against ING, Huang said.
Because of the scandal, ING is banned from becoming a manager of the Labor Insurance Fund or the Labor Pension Fund for five years, he added.
Meanwhile, Financial Supervisory Commission Chairman Chen Yuh-chang said the commission will conduct a comprehensive investigation of all government-owned funds to ensure they are properly managed.