The China Post staff
As the first step to place KMT’s assets in trusts, the director general of the KMT Administrative Committee Chang Che-shen yesterday signed contracts with the Chinatrust Commercial Bank and the Central Trust of China, handing over NT$2 billion worth of its assets to the two trustees. The China Development Industrial Bank (CDIB), a formerly KMT-run business, was reported to have been actively seeking to win the contracts from KMT by offering a series of favorable terms. The party ignored CDIB’s courtship in the end, saying it didn’t want to “put the money from the left hand to the right hand”. During the last presidential election, KMT pledged that the party would place its assets in trusts. No concrete actions had been taken to implement this promise until last month, when Chang revealed that the party had planned to create trust funds for its assets in three phases. Known as one of the wealthiest political parties in the world, the KMT reportedly owns assets worth hundreds of billion NT dollars. Chang refuted the report, however, stressing that KMT’s net assets were about NT$70 billion, once liabilities are taken into account.
The second trust fund for KMT’s assets will be in the form of real estate and will be established after the legislature passes relevant regulations by the end of this session, said Chang. As for the final phase of its assets entrustment, namely to put all the KMT-owned enterprises in trusts, Chang said it may not be completed until next year. “The Legislative Yuan will not be able to pass the political party act before the year-end, which will delay the establishment of the third trust fund for KMT’s assets,” noted Chang.