Taiwanese watchdog urges action on oil scandal, criticizes mayor's political focus

Taiwan's Economic Democracy Union (EMU) has criticized Taichung Mayor Lu Shiow-yen, accusing her of prioritizing political battles over addressing a cooking oil scandal involving companies like Chung-Lien and Formosa Oil. The union argues that Lu, as mayor of a city where these companies operate, was too quick to engage in political disputes rather than focusing on accountability.

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Don't let political rhetoric drown out corporate responsibility; EMU offers three reminders.

The EMU has put forth three key demands. First, they urge Tai Sugar, a state-owned enterprise, to seek compensation from the manufacturers responsible for the contaminated oil, asserting that taxpayers should not bear the financial burden. Second, they call on the Fair Trade Commission to investigate whether the significant price increase of salad oil in the first quarter of the year involved collusion among manufacturers.

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The local and central government's political squabbling has overshadowed the accountability that should be imposed on manufacturers.

Third, the EMU requests that the Financial Supervisory Commission and the Taiwan Stock Exchange thoroughly investigate potential insider trading by company insiders and related parties at companies such as Taisun, Formosa Oil, Fwusow, and Chung-Lien. This investigation aims to determine if they exploited major food safety news for illegal stock transactions. The union emphasizes that food businesses bear the primary responsibility for food safety, and political squabbling should not overshadow the need to hold manufacturers accountable.

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Tai Sugar should demand compensation from Chung-Lien Grease and Formosa Oil for damages; the losses should not be borne by the national treasury and taxpayers.