KMT party assets feud: CIPAS to freeze assets of Taiwan's Central Motion Picture Co.

The company owns a production studio in Taipei City, and four cinemas across the country

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TAIPEI (Taiwan News) -- A Taiwanese film company is set to be designated as a subordinate organization of the Kuomintang, with the Ill-gotten Party Assets Settlement Committee (CIPAS) set to freeze the company's assets soon, according to a media report on Wednesday.

China Television, Central Motion Pictures Corp., and the Broadcasting Corp. of China have long been suspected of being 100 percent owned by the KMT party even before controversial sales involving former President Ma Ying-jeou a decade ago, when he was acting as the chairman of the party. 

People familiar with the matter told Liberty Times that the committee is burning the midnight oil to present an advisory report on the Central Motion Pictures Corp. (CMPC Studios) scheduled to be released next Tuesday, Sept. 18. 

The report said that former committee Chairman Wellington Koo (顧立雄) discovered that the company was traded at far below market value at NT$65 (US$2.1) per share in 2006, resulting in a NT$1.8 billion (US$58 million) loss at the party's end. 

The committee reportedly talked to an accountant who has knowledge of the deals, and found other party assets were also sold at unreasonable prices. 

The CIPAS spokesperson Shih Chin-fang (施錦芳) confirmed the rumor to a Liberty Times reporter, saying that the committee will reach a conclusion in September. 

Complicated deal behind the CMPC Studios

Cmedia reported last year that there was a complex capital structure before the deal was made with Gou Tai-Chiang (郭台強), the younger brother of Taiwanese tech tycoon and Foxconn Chairman Terry Gou (郭台銘), with the assistance of some high-level KMT officials.

After taking control of the company, Gou found a KMT official-led cash refund capital reduction project problematic and filed a suit against the official. The highest court ruled in 2015 in favor of Gou, who later claimed he was a victim in the transaction with the party.

A committee official said that if the CMPC Studios is determined to be a subordinate organization of the KMT, then the company will be barred from accessing the company's assets and further transactions will not be allowed without the committee's approval. 

The company owns a production studio in Taipei City, and four cinemas across the country. 

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