Kung Chao-sheng

Premier Su's sacking order followed the example set in the firing of Financial Supervisory Commission (FSC) chief Kung Chao-sheng, who was accused of corruption.

Kung Chao-sheng, chairman of the Cabinet-level Financial Supervisory Commission, was questioned for his role in three cases of alleged irregularities involving Taiwan Sugar after he was engaged as its board chairman in December 2003.

Because of his status as a senior Cabinet official, Kung was questioned at a guesthouse in downtown Taipei.As of press time last night, he had not been released.

While serving with Taisugar, Kung was suspected of helping certain contractors to profit by inviting them to undertake smaller projects that did not have to go through open bidding.

Kung was also charged with nepotism for hiring his sister-in-law at a high monthly salary of US$3,000 to serve as a so-called adviser to the Taisugar-run chain of cafes that closed because of poor business.

In addition, Kung allegedly gave the sole distribution rights of StanLen, the brand name of a series of popular skin care products made by Taisugar, to an Internet company without inviting other companies to bid for the project.

Kung gave detailed accounts of the reasons for some of his actions while working with Taisugar and denied any wrongdoing on his part.

Kung was also suspected of being involved in insider trading that resulted in the resignation of FSC chief investigator Lee Chin-cheng.