Taiwan Weekly is a newsletter released every week by Fair Winds Foundation, Association of Foreign Relations and Taipei Forum that provides coverage and perspectives into the latest developments in Taiwan.
TPP Avoids Acting Chairman Issue: Trust in Ko or Attachment to Idol？
Chairman Ko Wen-je of the Taiwan People’s Party (TPP), implicated in the Living Mall case, is currently detained and barred from meeting visitors by the Taipei District Court. The party held an expanded meeting on September 6 to discuss the party's future and decided not to select an acting chairman at this time. Regardless of how the case develops, Ko's credibility has been severely impacted by such issues as political donations and the five major cases during his tenure as Taipei mayor. The TPP continues to avoid the issue of succession: Is it because the party trusts Ko or because it cannot do without him?
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Does President Lai Know This is a Scandal in a Democracy？
Recently, the Central Committee of the ruling Democratic Progressive Party (DPP) posted on Facebook for the Taipei District Prosecutors Office to rebut public suspicion about abuse of prosecutorial power, but this action invited more speculation that the DPP is giving orders to the judiciary, and the DPP subsequently removed the post. On the other hand, President Lai Ching-te appointed Yao Li-ming, who served as chair of Lai’s presidential campaign, to be vice president and grand justice of the Judicial Yuan, which is an utter disregard of judicial independence. Will President Lai withdraw this appointment? This decision will not be as easy as removing a Facebook post.
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Central Bank Surrenders Its Independence
The Central Bank's succumbing to politicians has led to the sacrifice of its independence. Perhaps future generations will mark September 2 as the "anniversary of the death of the Central Bank's Independence." Under the behind-the-scenes guidance of President Lai Ching-te and Premier Cho Jung-tai, and with the vegetative Governor Yang Chin-long, the Central Bank fully accepted the intervention and directives of politicians regarding the Central Bank and its financial management. This has resulted in a complete collapse of the professionalism and independence of the financial supervision of the Central Bank.
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This Week in Taiwan 0901-0907
September 1: During his campaign, President Lai Ching-te expressed a desire to have dinner with Chinese President Xi Jinping. However, in a recent television interview, when asked if he had considered meeting Xi, Lai stated that he hasn't thought about it. He emphasized that Taiwan cannot accept the "1992 Consensus" based on the "One China" principle. He also countered the "Lai skeptic" narrative, stating that Taiwan and the United States have excellent communication channels.
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TPP Chairman Ko Arrested on Allegedly Taking Bribes
During his term as Taipei mayor, Chairman Ko Wen-je of the Taiwan People’s Party (TPP) was involved in the Living Mall project controversy. On August 31, the Taipei District Prosecutors Office filed a complaint with the court, requesting to detain Mr. Ko, on suspicion of Mr. Ko violating his duties by accepting bribes, intending to profit, and manipulating evidence. The detention of the chairman of the third largest political party has severely affected the current political structure of the DPP’s opposition, which supposedly cooperates to check and balance the DPP. The TPP has framed this as a “political hunt,” seeking to unify its supporters and prevent them from disintegrating.
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With TPP Fragmented, How Can KMT Attract Disillusioned Voters？
The Taiwan People's Party (TPP) is facing the biggest crisis since its founding ten years ago. On August 30, Chairman Ko Wen-je was subjected to a search and questioning by the prosecutors due to the Living Mall project case. This comes after the scandals related to irregularities in his previous campaign financial reporting, delivering another heavy blow to the party. Many supporters who had hoped for the TPP as an alternative to the Kuomintang (KMT) and Democratic Progressive Party (DPP) now find themselves disillusioned, with both parties reaching out to these disenchanted voters. Meanwhile, President and DPP Chairman Lai Ching-te has successfully reclaimed the support of young voters through recent anti-corruption actions from prominent figures within and outside his party, many of whom were originally inclined towards the green camp. In contrast, what is the KMT offering to attract these voters to vote for them? Those are not only challenges for the KMT and TPP separately but also is also having a negative impact on the opposition’s role in fulfilling checks and balances.
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Concerns Raised By Battalion Commanders Highlight Crisis in Taiwan's Military Readiness
Four infantry battalion commanders about to deploy have jointly petitioned lawmakers, revealing severe deficiencies in equipment and leadership that hinder their ability to execute training missions. Despite persistent requests for support within the military, their appeals have gone unanswered, leading them to seek assistance from military-affiliated legislators. Although Taiwan’s defense budget is set to reach a historic high of NT$647 billion (about US$20.1 billion) next year, basic necessities like communication devices and gas masks are still lacking, and fundamental equipment checks are failing. Meanwhile, the government plans to invest heavily in building seven submarines, raising concerns about prioritization.
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This Week in Taiwan 0825-0831
August 26: The Kuomintang (KMT) former central headquarters was deemed improperly acquired property by the Ill-gotten Party Assets Settlement Committee (CIPAS), which demanded a recovery of NT$1.13 billion (about US$35 million) from the sale. The KMT filed an administrative lawsuit and won the first trial. Additionally, the Broadcasting Corporation of China (BCC) was identified as an affiliated organization of the KMT and faced a recovery demand of NT$7.7 billion (about US$239 million), but CIPAS also lost this case. Despite three consecutive losses, CIPAS can still appeal.
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Taiwan to Invest $84.8 Billion in Submarine Program Over 14 Years
The Executive Yuan has approved a budget of NT$2.84 trillion (about $84.8 billion) for the construction of seven new submarines over the next 14 years. This plan, which will run from 2025 to 2038, includes the development of new submarines following the ongoing tests of the prototype, Hai Kun. However, only NT$2 billion (approximately $62 million) is allocated for initial work in the upcoming year.
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Devising Budget for Hai Kun Submarine Mass Production Before Sea Trials May Risk Serious Cost Misrepresentation
The central government budget for next year includes an allocation of NT$647 billion (about US$20.2 billion) for national defense. As part of this, Premier Cho Jung-tai approved a 14-year mass production budget totaling NT$284 billion (about US$8.8 billion) for the domestic submarine construction program. Next year, over NT$2 billion (about US$62.6 million) will be allocated as the initial installment. According to military expert Chung Chieh, the administration of President Lai Ching-te intends to leverage the Legislative Yuan's review of the first year's budget to secure approval for subsequent years. However, there are concerns that the budget may be inaccurate if the prototype Hai Kun-class submarine has not undergone sea trials before mass production funding is finalized.
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