Taipei, March 10, 2010 (CENS)--The Ministry of Finance (MOF) dismissed Chen Sung-chu, chairman of state-run Taiwan Asset Management Corp. (TAMC), yesterday (March 9), for misappropriation of the company`s funds.

Chen was accused of appropriating 10% of the company`s profits from stock investment last year, amounting to NT$77.44 million, for allocation to 59 employees of the company, including NT$13.88 million for himself and NT$60 million for Chao Jung-fang, the company`s president.

The MOF has asked the company to retrieve the money from the recipients and will investigate whether the case involves betrayal of trust or other legal offenses.

Chen was appointed to the chairmanship of the company one year and eight months ago, apparently as a reward to his contribution to the campaign of President Ma Ying-jeou. Under his leadership, the company aggressively expanded its operation, undertaking the disposal of several major distressed assets, and started to engage in stock investment. The company raked in NT$2.3 billion of profit last year, a record high.

Chen has been generous in allowing the employees to share the profit. Employee bonus topped NT$103 million in 2009, compared with 2008`s NT$47.9 million. The company also appropriated NT$26 million from the profit for inclusion into the retirement fund reserves. Some practices, however, have been controversial, especially in view of the status of the company as a state-owned firm. In addition to the allocation of bonus from stock-investment profit, the company handed out NT$100,000 to each employee as the gift money for their birthdays last year, compared with NT$2,000 in 2008. In addition, it sponsors free tour, mostly overseas ones, for employees every quarter.

(by Philip Liu)