FSC head’s resignation approved amid Mega, XPEC scandals

FSC head’s resignation approved amid Mega, XPEC scandals

Amid the latest Mega Bank and XPEC scandals, Financial Supervisory Commission (FSC) Chairman Ding Kung-wha shouldered full responsibility by tendering his resignation , which was approved by Premier Lin Chuan Monday, according to Executive Yuan spokesman Hsu Kuo-yung. FSC Vice Chairman Kuei Hsien-nung has followed suit.

Ding will be temporarily replaced by another FSC Vice Chairman, Huang Tien-mu, according to Hsu.

Ding tendered his verbal resignation over the weekend, while the Premier asked him to stay. On Sunday night, Ding once again tendered his verbal resignation and Lin gave him verbal approval. A written resignation was then issued Monday morning.

In a statement issued earlier the same day, Ding said he was stepping down to take responsibility for the lack of oversight over Mega International Commercial Bank's alleged involvement in money laundering and the financially-troubled game developer XPEC Entertainment’s participation in insider trading.

Ding added that the FSC promptly launched an administrative probe after learning that the bank was fined US$180 million, or NT$5.7 billion, and a task force was also formed to seek accountability.

Speaking of the XPEC case, Ding said the relevant administrative probe and improvement plan have been completed and it is time for him to shoulder responsibility by offering to resign.

Tseng Ming-chung, former FSC chairman and now a Kuomintang legislator, said he felt sorry for Ding and the loss of a talented financial professional in the government. Tseng blamed a populist Taiwanese society for Ding’s decision to leave.

New Power Party legislator Huang Kuo-chang was not satisfied with the result, saying that Ding’s predecessors and supervisors should also be held accountable for the oversight as the problems were not built in one day but over the course of years, long before he took office.