Ex-Tainan Speaker Indicted for Allegedly Embezzling $10 Million in Public Donations for Personal Debts

Former Tainan City Speaker Kuo Hsin-liang faces indictment for allegedly misappropriating over NT$10 million in political donations and cultural association funds to settle private debts incurred before his election campaigns. The Tainan District Prosecutors Office has charged him with embezzlement of public funds.

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The original reappointment vote was conducted without sufficient disclosure of major information, which is clearly a significant flaw.

Prosecutors accuse Kuo of instructing his director, surnamed Huang, to withdraw large sums of cash from special accounts designated for political donations and a cultural association. These funds were allegedly transferred to other accounts to repay personal debts related to promissory notes. Investigations revealed that the political donation account was repeatedly used, with withdrawals of NT$3.2 million and NT$6.02 million. Additionally, NT$1.5 million was withdrawn from the cultural association's account.

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The debts in question were long-standing private obligations accumulated for various reasons, predating the establishment of the accounts and unrelated to his elections.

Kuo and Huang are alleged to have jointly embezzled a total of NT$10.72 million. This substantial amount was reportedly used to cover Kuo's long-standing financial shortfalls, rather than for legitimate election-related activities as required by law. Kuo's defense was that he had already paid significant election expenses before the accounts were established, necessitating the use of these funds to repay prior debts.

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Political donations exist to support political activities and are not private property that can be freely disposed of. Candidates have only the status of administrators for donations and must be bound by legal uses.

However, prosecutors countered that Kuo had a pattern of using new loans to pay off old ones, and the debts in question were long-standing private obligations accumulated for various reasons, predating the establishment of the accounts and unrelated to his elections. They cited legal precedent and practical understanding, emphasizing that political donations are meant to support political activities, not serve as personal assets. Candidates are merely administrators of these funds and must adhere to statutory uses. Prosecutors also questioned why Kuo would conceal these large withdrawals in his financial reports if he believed they were legal, suggesting this action indicates his awareness of the illicit nature of the transfers and his intent to embezzle.

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If Kuo believed that using account funds to repay debts was legal, why did he deliberately conceal the large withdrawals in the accounting report? This action clearly shows that he knew the appropriation was illegal and had subjective intent to embezzle, and was therefore prosecuted according to law.