IDB debt up to NT$51.3 bil.: Control Yuan
By Linger Liu, The China PostTAIPEI, Taiwan -- The Control Yuan yesterday reported that the Industrial Development Bureau (IDB, 工業局) of the Ministry of Economic Affairs have accrued a debt of NT$51.3 billion over the past eleven years.
January 15, 2013, 12:21 am TWN
The Control Yuan released the evaluation report on IDB's land and industry development project yesterday. The report concluded that the IDB had accrued the NT$51.3 billion sum because of a lack of constant project evaluation and supervision, said to the Control Yuan.
According to the Control Yuan, the IDB's land and industrial development project caused major fiscal damage to the central government. The Control Yuan said that because the IDB did not perform its duty monitoring the progress of the land development project, notably failing to get involved enterprises to repay over-due loans. The IDB lacks a sufficient evaluation system regarding loans to enterprises involved with the development, the Control Yuan said.
Monitoring System Has to be Reformed
Part of the IDB's role in the land and industrial development project involves monitoring the transaction of funds between the government and local enterprises, balancing construction costs, monitoring yet unpaid loans, and keeping the central government's budget balanced, said the Control Yuan.
The Control Yuan said the IDB did not effectively control the budget, leading to a number of flaws. It said that these flaws include the IDB failing to provide project evaluation reports on property lettings and not providing sufficient receipts. At the same time, the IDB did not follow up many budget proposals that remained unresolved for years.
According to the opposition party, the project has led to a debt of NT$51.3 billion for the central government.
Shen Jung-chin (沈榮津), director-general of the Industrial Development Bureau, said the project aimed to attract overseas Taiwan enterprises to come back and invest in Taiwan's own industrial project. He said that therefore the government formed the project and prepared several industrial development areas to provide enterprises and investors sufficient lands commence business on.
The Control Yuan at the same time said the IDB's high debt had caused the central government sever fiscal damage. It also stated that IDB's lack of efficient monitoring also damage the progress of the development project that would require a proper reform on the current system.