Hsinchu mayor corruption case appeal halted over constitutional concerns

Taipei, Jan. 2 (CNA) The Taiwan High Court has suspended its review of Hsinchu Mayor Ann Kao Hung-an's (高虹安) appeal against her conviction in a corruption case dating back to her time as a lawmaker, citing concerns about the constitutionality of the law applied in the case.

Kao, who served as a legislator-at-large for the Taiwan People's Party (TPP) from Feb. 1, 2020 to Dec. 25, 2022, was found guilty by Taipei District Court in July 2024 of filing fraudulent expense claims to pay staff hired with public funds under Paragraph 1, Article 32 of the Organic Law of the Legislative Yuan.

The former TPP lawmaker left the Legislature to take up the Hsinchu mayor post in late 2022. However, she and four of her former legislative staff members were indicted in August 2023 for claiming government-paid expenses to cover staff costs that were higher than the actual salary and overtime paid to her aides.

Kao and three of the four indicted former staff members were found guilty of violating the Anti-Corruption Act, because they used the fraudulently claimed expenses as petty cash and the district court found that constituted embezzlement.

Kao was sentenced to seven years and four months in prison, and four years of civil rights suspension, while the three former aides were given suspended prison sentences.

Because there is no clear indication in the organic law on the legal consequences of violating the article on staff costs, the High Court said it needs to seek the Constitutional Court's view before proceeding with Kao's appeal.

Although there have been more than 200 court rulings on misuse of public funds by elected representatives at local government level, Kao is the first legislator to be found guilty of such offenses and the result of her case will have long lasting impact, the High Court said.

There is no standing legal opinions on whether existing court rulings based on the Regulation on Allowances for Elected Representatives and Subsidies for Chiefs of Village can be applied in the lawmaker's case, because it is not clearly stipulated in the Organic Law of the Legislative Yuan, according to the High Court.

Despite its ample resources and the expertise of its staff, the Legislative Yuan was unable to provide a definitive view on the legislation regarding staffing costs, the High Court added.

Both Kao and the Taipei District Prosecutors Office appealed the district court's decision, with Kao defending her innocence by arguing to the High Court in November last year that no money went to her personally.

Meanwhile, the Taipei District Prosecutors Office sought a heavier punishment in their appeal.

Following the guilty verdict on July 26 last year, Kao was automatically suspended as Hsinchu mayor in accordance with related legal provisions.

The Ministry of the Interior named Kao's deputy, former TPP lawmaker Chiu Chen-yuan (邱臣遠), as acting mayor the same day.

On Thursday, Minister of the Interior Liu Shyh-fang (劉世芳) said during a press briefing that Kao's suspension is not changed by the High Court's announcement, as her earlier guilty verdict still stands.

When asked if Kao could be eligible to run for Hsinchu mayor in the local government elections in late 2026, Liu said it remains to be seen when the courts will rule on her case, but the ministry is following the legal proceedings closely.