TAIPEI (Taiwan News) — China has reportedly instructed officials responsible for Taiwan affairs to help safeguard KMT Vice Chair Hsiao Hsu-tsen (蕭旭岑) amid the ongoing controversy surrounding the Ma Ying-jeou Foundation.
A source familiar with cross-strait affairs told Mirror Media that China is concerned the dispute could evolve into a broader debate within the KMT over the party's cross-strait policy direction. The source alleged that former National Security Council Secretary-General King Pu-tsung (金溥聰) was acting on behalf of US interests to weaken the party's faction that favors closer cross-strait exchanges.
The source said the controversy highlighted what they described as direct Chinese involvement in shaping the KMT's future policy direction. The source warned that the involvement could become a significant challenge for the party.
Mirror Media also challenged Hsiao's previous explanation regarding a photograph showing him and businessman Han Ying-huan (韓螢煥) holding stacks of cash. Hsiao had said he chose not to immediately record a NT$1 million (US$31,803) donation in the foundation's accounts out of concern that a future DPP administration might scrutinize the contribution. He also said former President Ma Ying-jeou (馬英九) had been informed of the donation.
A source close to Ma said opposition parties were at the time attempting to form a coalition to challenge then-presidential candidate Lai Ching-te (賴清德). The source added that if Ma had been experiencing cognitive decline, as some critics have suggested, he would not have been actively involved in coalition-building efforts.
Mirror Media further alleged that former foundation employee Wang Kuang-tzu (王光慈) withdrew between NT$200,000 and NT$300,000 monthly from Ma's personal account without providing detailed records of how the money was used.
The report also alleged that Lee Te-wei (李德維), a member of the foundation's three-person investigative panel, described the unrecorded donations as "just a little more than NT$1 million" and "not a big deal," per Mirror Media. The panel later cleared Wang and Hsiao of wrongdoing, according to Mirror Media.
Responding to the report, Hsiao said he could not comment because the investigation was ongoing, per UDN. He said the investigative panel's findings would ultimately be subject to legal scrutiny and that the allegations would be clarified in due course.
Asked about reports of divisions between pro-US and pro-China factions within the KMT, KMT Legislative Caucus Secretary-General Lin Pei-hsiang (林沛祥) said matters involving the foundation should remain internal to the foundation, per UDN.
DPP Legislative Caucus Secretary-General Chuang Jui-hsiung (莊瑞雄) said it was up to the KMT, not China, to decide whom it wished to defend, per Liberty Times. He added that if legal proceedings are involved, no political party would be able to shield Hsiao from scrutiny.
