Lien says financial records available for examination amid TDR scandal
By Adam Tyrsett Kuo, The China PostTAIPEI, Taiwan -- Sean Lien (連勝文), a possible candidate for the upcoming Taipei mayoral election, yesterday released a statement saying that his financial records are available for examination, in response to a magazine report claiming that Ting Hsin International Group (頂新國際集團) chief Wei Ying-chiao (魏應交) had given him portions of a “kickback.”
December 19, 2013, 12:10 am TWN
According to Next Magazine (壹週刊), Wei had received a NT$75 million “kickback” from SinoPac Securities (永豐金證券) for distributing Taiwan Depositary Receipts (TDRs) on the behalf of Tingyi (Cayman Islands) Holding Corp. (康師傅控股有限公司), a subsidiary of Ting Hsin International Group. Wei allegedly gave a portion of that money to Lien among others who had bought the firm's TDRs in order to avoid detection.
Lee Te-wei (李德維), a member of the Kuomintang Central Standing Committee and friend of Lien, said that the content of the report is not compatible with the facts.
Lee said that Lien had purchased 25 units (equivalent to 25,000 shares), as opposed to the reported 172, of the TDRs in question from SinoPac Securities, but after the Financial Supervisory Commission (FSC) had reprimanded the brokerage firm, Lien received notice that an excess processing fee, roughly NT$20,000 (or NT$0.8 per share), would be returned to him.
Lee said on behalf of Lien that when Tingyi (Cayman Islands) Holding Corp. issued its TDRs, Lien was head of EasyCard Corporation (悠遊卡公司), and that Lien's financial records are available for examination, denying that the possible Taipei mayoral candidate had received payments from Wei.
In response to claims that SinoPac Securities had violated the Securities and Exchange Act (證交法), FSC Chairman Tseng Ming-chung (曾銘宗) said that his commission will aid prosecutors in their investigations.