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People's Party Chairman Ko Wen-je is embroiled in a scandal involving false political donation reporting, and the incident continues to ferment.

Ke Wenzhe is caught up in a false political donation report incident (file photo)

According to Taiwan's China Times Electronic News on August 14, the Shile Company, which had hosted the People's Party's election activities, recently stated that it had not issued three invoices totaling NT$9.16 million, which caused an uproar in all circles. In addition to the prosecution's active investigation, former Taiwan "High Prosecutors Office" prosecutor Zhang Xihuai and Taipei City Councilor Zhong Xiaoping filed a complaint. The current defendants include Ko Wen-je and his wife Chen Pei-chi, his confidant Li Wen-zong, Li Wenjuan, the head of Mu Ke Public Relations Company involved in the influx of Ko Wen-je's funds, and Duan Mu Zheng, the accountant of Ko's team. On the 13th, the prosecutor wrote to the "Control Yuan" to review Ko Wen-je's political donation declaration materials for the campaign for the leader of the Taiwan region. On the 14th, they went to Duan Mu Zheng's office, Mu Ke Company and Ko Wen-je's office to retrieve documents, vouchers and other data for comparison, and summoned Duan Mu Zheng and other relevant persons to appear in court. According to reports, the Taiwan "Control Yuan" said that it has launched an administrative audit, and after the audit is completed, the "Control Yuan" Integrity Committee will decide whether to punish Ko Wen-je.

On the 12th, the People's Party held a press conference to explain. Huang Shanshan, then the campaign director general of Ko Wen-je, accused Duanmu Zheng of "taking advantage of his own convenience" when doing the accounting. Duanmu Zheng immediately issued a statement, emphasizing that it was handled in accordance with regulations and there was absolutely no illegality. According to Taiwan's United News Network on the 14th, the People's Party held a Central Committee meeting that day, and Huang Shanshan resigned as a member of the Central Committee. Duanmu Zheng and then-campaign treasurer Li Wenzong were referred to the party's Central Evaluation Committee for punishment. The Central Evaluation Committee will hold a meeting in the shortest possible time to decide on the content of the punishment. In addition, the People's Party originally planned to sue Duanmu Zheng on the morning of the 14th, but later postponed it to the afternoon.

Taiwanese media said that Ko Wen-je was caught up in the political donation storm and faced the biggest test of his political career. Public opinion analysis on the island believes that this is the DPP authorities' full-scale attack on Ko Wen-je in order to avoid "blue and white cooperation". Xiao Xucen, executive director of the Ma Ying-jeou Foundation, analyzed on the 13th that if Ko Wen-je was seriously injured, it would greatly reduce the probability of cooperation between the Blue and White parties in the 2026 and 2028 elections, allowing Lai Qingde to reap the benefits, which is definitely not good news for the Kuomintang. Li Yanxiu, who is also the chairman of the Kuomintang's Cultural and Communications Committee, said on the 14th that Xiao Xucen's concerns are not unreasonable, but Taiwan's political changes are too fast, "it's really hard to say now." Whether the blue and white can cooperate in the 2026 or 2028 elections depends on three key points, namely the atmosphere of opposition cooperation in the Taiwan "Legislative Yuan" in the next three and a half years, the line dispute within the People's Party, and the overall political atmosphere before the election.

Xiao Xucen said that if Ko Wen-je is "seriously injured", Lai Ching-te may reap the benefits

Taoyuan City Councillor Zhan Jiangcun published a commentary on Taiwan's China Times News Network saying that Ko Wen-je is now in a state of silence, knowing that someone in his team is playing tricks, but he can't catch them, or dares not catch them. From the account case, we can see that Ko Wen-je is basically a party chairman who can be kidnapped and sidelined by his subordinates. He may not know what his subordinates are doing, but he has to bear the political recoil.

Niu Zexun, a full-time professor of the Department of Advertising at Taiwan Culture University, published a commentary on the China Times News Network on the 14th, saying that although the Democratic Progressive Party has not taken any action on the surface, the pro-green media, wings, and celebrities, including former staff members or "Ko haters" who understand the operation of the Ko camp, have already focused on the attack, that is, to force Ko into a corner, and Ko and the People's Party are almost unable to resist. As for the Green Camp, it is the best place to sit back and reap the benefits. After all, most of the young "little grass" who support Ko will return to the Green Camp after questioning Ko Wen-je's integrity and governance ability. The commentary said that the bigwigs of the Blue Camp cannot stay out of it, and they must find a point of force for reversal in order to create a confrontation situation against the Green Camp and gain the upper hand in this wave of reorganization of the political landscape. (Cheng Dong)

Further reading

Ke Wenzhe is deeply involved in the political donations scandal, and the Kuomintang has expressed its position

The chairman of the People's Party, Ko Wen-je, has been caught up in a storm of fake accounts for campaign funds during the Taiwan regional leader election. On the morning of the 14th, the Taiwan prosecutors and investigators launched a large-scale search of Mu Ke Company and Duanmu Zheng Accounting Firm. The outside world is also concerned that the People's Party may be affected by the blue-white cooperation under judicial pressure. The chairman of the KMT Cultural and Information Committee, Li Yanxiu, made a clear statement on behalf of the KMT Central Committee this afternoon that only if the opposition party firmly cooperates can it have enough power to supervise the DPP authorities. It is hoped that the People's Party can quickly investigate the political donation storm and defend its own rights. "I hope they can get through the difficulties as soon as possible."

Li Yanxiu, chairman of the KMT's Cultural and Communications Committee, made a clear statement on behalf of the KMT

Ma Ying-jeou Foundation Executive Director Hsiao Hsu-Chen said yesterday that from a political perspective, Ko Wen-je's "shot" and "serious injury" is definitely not good news for the KMT. Because of the current situation where Ko Wen-je's political energy has been weakened, the reorganization of power within the People's Party is imperative. This incident has greatly reduced the chances of Blue and White cooperating in the 2026 and 2028 elections, which will allow Lai Ching-te to reap the benefits. Lee Yen-Hsiu said today that Taiwan's politics will undergo drastic changes every three months, and it is probably a little early to talk about 2026 and 2028.

As for the outside world's voice that the People's Party's political donation scandal was all because of the then campaign director Huang Shanshan, and this may be the reason why Huang tried hard to prevent the "Blue and White Alliance"? Li Yanxiu said that the Kuomintang respects different opinions within the People's Party. The "Blue and White Alliance" has turned over a big chapter, and political parties should move forward and face the current difficulties and challenges. It is hoped that the People's Party can overcome the difficulties as quickly as possible, both in terms of the "legal" level and in terms of the trust of supporters.

Li Yanxiu believes that in the short term, Ko Wen-je and the People's Party seem to be hurt by the issue of handling the campaign accounts. However, this should be viewed from two perspectives: "facts" and "politics". In terms of facts, is it a mistake? Or dirty money? It remains to be clarified by Taiwan's supervisory agencies and prosecutors. If it is finally proven that it is not Ko Wen-je's fault, it may be "short-term bearish and long-term bullish".

Li Yanxiu said that in terms of politics, Xiao Xucen's concerns are not without reason. However, Taiwan's political changes are too fast, and it is really hard to say now. She believes that the three most important indicators for observing whether the Kuomintang and the People's Party can cooperate in 2026 or 2028 are: the atmosphere of cooperation between the opposition and the public opinion institutions in Taiwan in the next three and a half years, the line struggle within the People's Party, and the overall political atmosphere before the "election".

Li Yanxiu emphasized that the opposition party will remain firm in cooperating with Taiwan's public opinion institutions in the future and will not retreat. Blue and White must cooperate to supervise the arrogant DPP and Lai Qingde's administration. The Kuomintang respects and supports the People's Party and strives to fight for its rights and interests at the "legal" level. Every political party has its ups and downs, and we hope that the People's Party will find out as soon as possible and overcome the difficulties.

KMT MP Xie Longjie also said today, "It depends on the facts!" He stressed that the DPP may use various issues to provoke the opposition party in the near future. Taiwan's supervisory agencies should bring out any evidence they find, and there is no need to expand the interpretation of this matter. Everyone has the right to defend their innocence.