TAIPEI (Taiwan News) — Zhubei Mayor Cheng Chao-fang (鄭朝方) is facing allegations of breach of trust linked to a land development dispute involving his family, a controversy that could complicate his expected nomination by the DPP for the Hsinchu County magistrate election.
The case centers on a development project involving Cheng’s father, Cheng Yung-chin (鄭永金), and Hsu I-ming (徐翊銘), chair of Elements Innovation Corporation, per UP Media. Cheng Chao-fang signed an agreement with Hsu under which Hsu’s company would pay the Cheng family NT$260 million (US$8.1 million) for the project.
The project reportedly encountered problems in 2022 when the Cheng family sold its portion of the jointly developed land to a third party for about NT$500 million. The Cheng family claimed Hsu’s company failed to make the agreed payments, while Elements Innovation disputed the claim and presented bank transfer records showing payments of at least NT$37 million.
The company said it had also provided funds to the Cheng family through other means, including cash payments, assistance in obtaining loans, and help repaying family debts. A lawyer for the Cheng family countered that the payments cited by the company were for community outreach activities and political donations.
Responding to the allegations, Cheng Chao-fang said he was primarily involved in the cultural sector at the time and was not engaged in public affairs. He emphasized that the incident occurred before he held elected office and said he has never allowed conflicts of interest during his political career.
Cheng also rejected the company’s accusations, alleging the firm forged his and his brother’s signatures, per Mirror Media. He further accused Hsu of withdrawing NT$155 million from the company’s bank account and depositing the funds into his personal account.
Cheng had previously filed a lawsuit against Hsu, alleging he had loaned part of the land involved in the joint venture to a third party for 10 years without Cheng’s consent, per Tai Sounds. During the trial, Hsu argued the arrangement was intended to prevent the land from being foreclosed while he faced jail time in another case.
Cheng Yung-chin testified that Cheng Chao-fang held title to the land in name only and that he had authorized Hsu’s arrangement. A civil servant involved in the transaction supported Cheng Yung-chin’s account, and the court ultimately found Hsu not guilty of breach of trust.
Separately, President Lai Ching-te (賴清德) attended a Hakka folk song competition on Saturday, becoming the first sitting president to participate in the event. His appearance, combined with Cheng Chao-fang’s remarks about a proposed NT$500 million Hakka cultural center, has fueled speculation that the DPP may be seeking to court Hakka voters while the KMT remains mired in a contentious primary, per Liberty Times.
Although Cheng, who also chairs the DPP’s Hsinchu County Branch, is widely seen as the party’s likely candidate for magistrate, the DPP has not yet formally announced its nominee. Lai reportedly visited the Cheng family after attending the competition, per SETN.
