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MOEA dismisses KMT accusations of 'wrongdoings'

MOEA dismisses KMT accusations of 'wrongdoings'

The Kuomintang lawmakers Lai Shyh-bao (賴士葆) and Fai Hrong-tai demanded the Ministry of Economic Affairs stop their plan to sell the debt-ridden U.S.-based Sino Swearingen Aviation Corporation, or face the charge of negligence of duty.
KMT lawmakers said the fate of the deficit company should be decided by the new government elected in the upcoming presidential election.
The MOEA said yesterday they will freeze this porject till receiving the agreement from Legislature after the March preisdential election.
KMT lawmakers questioned the government's motives behind selling tge aircraft company, speculating that the transaction is means to cover up possible wrongdoings in the company's administration, calling the deal a DPP scandal.
The lawmakers accusations were denied by the Cabinet and Ministry of Economic Affairs.
Cabinet Secretary-General Chen Chin-jun (陳景峻) said yesterday the rotten legacy of the SSAC was an investment initiated by the KMT government since 1995, and the DPP government was just trying to clean the mess.
The MOEA and its subordinate companies are the main shareholders of the aviation company, which recently just began to produce and sell its light business jet SJ30 after more than ten years of research and development.
The JS30 has received around 300 orders so far, and the twin engines light business jet has received good reviews for its performance. The government had invested over US$400 million since 1995, and the company's net asset was in the red with a debt totalling US$60 million.
Lai said, "We have invested already more than US$400 million on SSAC, and we are going to sell it priced at only US$150 for 80 percent of SSAC's shares. Also, the SJ30 has received so many orders and the SSAC seems to be making some profit now, so why would the government still want to sell this company?"
After reviewing the commercial agreement, Lai said the government was going to sign with a possible investor from Dubai, United Arab Emirates. The lawmakers also accused the DPP of attempting to embezzle commission from the aircrafts' sales in the future.
Lai said the agreement described that the new buyer needed to pay the "original shareholder" US$70,000 in every sale of a SJ30 after selling one hundred SJ30 light business jets. Lai said, however, the royalty agreement did not specify who the "original shareholder" is, and that the business agreement may be a possible loop hole for the DPP government to receive secret kickbacks from the Dubai buyer.
The MOEA defended the move, saying the Sino Swearingen's finances were long in deficit, and the company will have no choice but to claim bankruptcy if no more capital comes into the company.
According to the MOEA, the new buyer will invest US$150 million and receive 80 percent of shares. The new buyer also needs to pay back the loan the company borrowed from Taiwan, and the SSAC will buy the aircraft's parts from Taiwan.


Updated : 2021-08-05 02:49 GMT+08:00