Former KMT official claims many party assets are now unrecoverable

Former chairman of the Kuomintang's (KMT) Party Assets Committee, Liu Tai-ying, has revealed that a significant portion of the party's assets were initially registered under nominal owners, often referred to as "nominees" or "straw men."

“

The KMT's party assets were initially registered under nominal owners.

Liu stated that due to political transitions and the passing of these nominal owners, many of these assets have become irrecoverable, effectively turning into the private property of the nominees' families. He claimed that during his time as chairman, the annual profits of party-affiliated businesses increased dramatically from NT$2 billion to over NT$10 billion, but reverted to NT$2 billion after he stepped down, implying that substantial profits were personally appropriated.

Historically, the KMT, lacking legal corporate status, had to register its assets under individuals. Liu recalled advising then-President Lee Teng-hui to establish a corporate entity, which facilitated the subsequent recovery of assets held by nominees. He mentioned that during his tenure, he attempted to reclaim assets listed under nominees, noting that former Premier Hao Po-tsun held the largest number of registered assets under his name, though they were eventually recovered after initial difficulties.

“

Because of the change of regime and the death of some nominal owners, many could not be recovered and became the family property of the nominal owners.

Liu emphasized the challenges in asset recovery, particularly when a nominal owner died. He explained that heirs often disavowed any claim to the assets, making recovery impossible for the KMT and leading to the assets being absorbed into family estates. This situation, he noted, was very common.

“

When I was chairman of the Party Assets Committee, party-run businesses earned NT$2 billion a year. After I took office, they could earn over NT$10 billion a year. After Liu resigned, it returned to NT$2 billion a year, with most of the profits taken by individuals.

Furthermore, Liu attempted to reclaim KMT assets in mainland China, such as those related to Tsingtao Brewery, which originated from the KMT's "Qilu Enterprise" established in 1947. Although Chinese authorities initially agreed to liquidate the KMT's share, the matter was dropped after Liu's resignation.

“

The worst is when the nominal owner dies, then it cannot be recovered.