Taipei, June 27 (CNA) Prosecutors will launch an investigation into a bribery allegation involving Executive Yuan Secretary-General Lin Yi-shih, the Special Investigation Division under the Supreme Prosecutors Office said Wednesday.
The division has collected information reported by Next magazine, which it will use in its investigation, said Chen Hung-ta, a division spokesman.
According to the tabloid, Lin received NT$63 million as a bribe from Chen Chi-hsiang, the owner of Kaohsiung-based Ti Yung Co., to help the company secure a slag treatment contract from China Steel Corp. (CSC) two years ago, when Lin was a legislator of the ruling Kuomintang.
Lin demanded a further NT$83 million from Chen between February and March this year, and when Chen refused to pay up, Lin had CSC stop supplying slag to his company for treatment in April, the magazine said.
Lin, however, dismissed the report as "totally unfactual" and said he is prepared to take legal action against the magazine to defend his reputation.
He admitted that Chen visited him at his home but denied that he had ever reached any deal with him.
Meanwhile, CSC said in a statement that it decided to stop supplying slag to Ti Yung because the company violated the contract with CSC by depositing excess amounts of the industrial waste.
The CSC said it was notified by Kaohsiung City's Environmental Protection Bureau March 23 that Ti Yung had been banned from accepting new slag because it was already storing "a large amount of metal slag."
Although it revoked the ban June 1, the bureau nevertheless required Ti Yung to remove the metal slag it had stored at six different sites within six months, according to CSC.
CSC said it will continue to suspend slag supplies to Ti Yung until the situation is improved.
Meanwhile that day, Presidential Office spokesman Fan Chiang Tai-chi said President Ma Ying-jeou, after being informed of the case,
has told Lin to provide a clear explanation to the public.
Ma stressed that incorruptibility is the most basic moral standard for civil servants and that the same criteria should apply to all members of his administration.
(By Y.F. Low)