Thursday, October 2, 2014

Tsai Cho-yung Scandal: Clues to Wen-Je Ko Private Accounts

Tsai Cho-yung Scandal: Clues to Wen-Je Ko Private Accounts
United Daily News editorial (Taipei, Taiwan, ROC)
A Translation
October 3, 2014

 Executive Summary: How many sins have been exempted from punishment by means of phony labels. In both the 402 and MG 149 scandals, physicians wore the halos of public service. They may escape prosecution because of their image as public benefactors. But how worthy of white robes are those charged with reforming the system and plugging the loopholes? 

Full Text Below:

The Wen-Je Ko MG 149 accounts scandal has exploded. As many as 402 accounts with the National Taiwan University Hospital have been found in violation of the "Charity Donations Destined For Social Welfare Funds Implementation Regulations." The Ministry of Finance says it never approved the establishment of MG 149. Yesterday the Taipei Prosecutor's Office summoned Ko account manager Liu Ru-yi for questioning. The Ministry of Education will also pay a visit to NTU to examine the 402 accounts. But this is an election year. Can the circumstances surrounding these accounts be brought to light? Is is doubtful.

The Ministry of Education, the Ministry of Health and Welfare, and the Ministry of Finance are each singing their own tune. Obviously the 402 NTU accounts have been relegated to no mans's land for some time. Business operations are overseen by the Ministry of Health and Welfare. Nominally they are governed by the Ministry of Education. The Ministry of Finance is responsible only for nuclear medicine equipment. Think about it. Even donations to the 402 NTU accounts were not reported. The MG 149 aspect was subject to even less oversight. Wen-Je Ko set up personal accounts and private accounts under MG 149. He mixed public accounts with private accounts, making mess even more difficult to unravel.

In recent years, large domestic hospitals have made improper use of charitable donations, for which they are currently under investigation. Two cases have received a great deal of attention. One. In 2003, Chang Mao-sung, former president of the Veterans General Hospital, misappropriated funds from 2929 secret accounts. Two. In 2011, doctors at the Tri-Service General Hospital and Veterans General Hospital used Academia Sinica member Tsai Cho-yung's "Siyuan Foundation for the Advancement of Education and Academics," and Li Hong's "Cheng Han Educational Foundation" to evade taxes. Over 500 physicians were involved. These two cases may help people understand the twists and turns of the Ko accounts.

The 2929 Veterans General Hospital accounts were established early on to prevent corruption and ensure quality health care. It set aside a certain amount from the surplus each year, to serve as incentives and benefits for physicians. But account management authority resided solely in the hands of the president and comptroller. When Chang Mao-sung served as president, he and Chief Accountant Yi Ping-tung repeatedly misappropriated funds. They used them for private investments and stock trades, then pocketed the funds. The amount was as high as 80 million NT.

The case came to light in 2003. Prosecutors spent more than two years investigating. They eventually prosecuted them for embezzlement. They sought a 15 year sentence for Chang Mao-sung. Predictably, the Shihlin District Court took over five years to hand down a verdict. The charge was changed to misappropriation of funds and the sentence reduced to one year and two months. Prosecutors appealed. The appeal process dragged on until last year. The High Court found Chang Mao-sung guilty only of business misappropriation. The sentence was further reduced to six months, then commuted to a fine. He did not even have to serve time. The case dragged on for more than nine years. Prosecutors sought a 15 year sentence, based in high ethical standards. Judges gradually whittled down the sentence. In the end his sentence was reduced to six months for a misdemeanor.

Now take the 2011 Tsai Cho-yung Si Yuan scandal. This was characterized as the biggest group tax evasion scheme by physicians in history. The case was relatively simple. The main problem was that physicians' incomes were too high. To reduce their tax burden, many Tri-Services General Hospital and Veterans General Hospital physicians put their money into two foundations, the "Si Yuan" foundation and the "Cheng Han" foundation, established by Tsai Cho-yung and Li Hong-chen. They received 20% tax deductions on their donations. Later, they sought research grants fom the foundations, for which they could receive 90% to 95% deductions. By putting the money in then taking it out, they made false donations, but received real tax benefits.

This case was uncovered by the National Tax Bureau and the Taipei Tax Contributions Department while pursuing tax evasion cases. They then submitted it to prosecutors. Tsai Cho-yung was an Academia Sinica member, and a former president of the National Defense Medical Center. Li Hong-yi was a National Defense Medical Center alumni. As a result, over 500 physicians, mostly from military backgrounds, were involved. So were hospitals throughout Taiwan. The large number of people meant a large volume of work, and slow progress with the investitgation. Little news emerged. Prosecutors said many physicians had no prior criminal records. They showed remorse, and were willing to make up for the taxes they evaded. They were usually not prosecuted.

Compare the above two cases to the Ko case. The Wen-Je Ko 149 MG case is a synthesis of these two cases. On the one hand they accepted donations. , On the other hand they fund studies. Physicians help each other. The Ko account also accepted vendor contriubutions. As far as account management, Wen-Je Ko has yet to be accused of misappropriation of public funds. But he single-handedly controlled account management, The account had little transparency. Consider the account usage rules. According to MG 149 provisions, a physician could first make a donation, then receive a subsidy. The rules stipulated a minimum balance. This mode of operation resembled Tsai Cho-yung's "phony donations, real tax evasion" model.

The Tsai Cho-yung scandal gobbled up three years of time. So far no visible progress has been made. So many physicians were involved in the case, justice system personnel felt they were dealing with a hot potato. Had the Tsai Cho-yung scandal erupted before their very eyes, Wen-Je Ko would have been more cautious about his own account. He would have modifed the regulations, and desisted from "phony donations, really tax evasion." Wen-Je Ko would probably walk. But hundreds of physicians are involved. He is still taking advantage of the opportunity, Thefore he has no right to talk the voters about morality.

How many sins have been exempted from punishment by means of phony labels. In both the 402 and MG 149 scandals, physicians wore the halos of public service. They may escape prosecution because of their image as public benefactors. But how worthy of white robes are those charged with reforming the system and plugging the loopholes? 

從蔡作雍案一窺柯文哲私帳端倪
【聯合報╱社論】
2014.10.03 02:01 am

柯文哲MG一四九帳戶風波擴大,牽扯出台大醫院四○二帳戶違反《公益勸募條例》的問題,財政部更稱從未核准MG一四九設立。北檢昨天傳喚柯帳管理人劉如意訊問,教育部也將赴台大稽查四○二帳戶;然而,在選舉當前的氛圍下,這本來龍去脈不清的帳能查到什麼地步,令人存疑。

從近日教育部、衛福部、財政部各說各話的情況,不難得知,台大四○二帳戶長期處於「三不管」地帶:業務上受衛福部督促,名義上受教育部管轄,財政部僅負責形式的核備。試想,連台大四○二帳戶接受捐款都未依法呈報,它底下的MG一四九則更是自由自在,不受督管;而柯文哲又在MG一四九底下另設了個人帳和私帳,公私雜混,更難釐清。

近年來,國內大型醫院的公益或研究帳戶因運用不當而受到調查的,有兩個頗受矚目的案例。其一,是二○○三年前榮總院長張茂松挪用「二九二九」密帳案;其二,則是二○一一年三總及榮總醫師透過中研院士蔡作雍之「思源教育學術促進基金會」及李鴻的「成漢教育基金會」集體逃漏稅,涉案醫師超過五百人。回顧一下這兩個案件,或許有助人們一探柯帳的曲折。

榮總的「二九二九帳戶」,是該院早年為了保持醫師廉潔並兼顧醫療品質,每年從盈餘中提撥若干金額,充當醫師的獎勵金及福利金。然而,由於帳戶管理權掌握在院長及會計長手中,張茂松擔任院長期間,竟和會計主任易屏東多次挪用帳下款項,用於私人投資及股票買賣,並納入私囊,金額高達八千多萬元。

此案在二○○三年被揭發後,檢方花了兩年多的時間調查,最後依「貪汙罪」起訴,對張茂松求刑十五年。孰料,士林地院花了五年多才宣判,改依「侵占罪」判刑一年兩個月。檢方上訴,二審拖到前年底才宣判,高院認定張茂松僅構成業務侵占,因此輕判半年,得易科罰金,連坐牢都不必。亦即,此案歷經九年多的司法程序,檢方求刑十五年的高道德標準,在法官手中一層層流失,最後僅剩半年的輕罪。

再看二○一一年蔡作雍的「思源」案,雖被稱為「史上最大」的醫師集體逃漏稅案,其實案情還比較單純。主要問題,是醫師收入太高,為了規避綜所稅稅負,許多三總與榮總的醫師先將錢捐入蔡作雍和李鴻成立的「思源」和「成漢」兩基金會,可取得捐款兩成抵稅的優惠;其後,再向基金會申請研究補助,可以取回九成至九成五的捐款。如此一進一出,即構成「假捐贈,真逃稅」。

這樁案件,是國稅局台北稅捐處在追查逃漏稅時所發現,報請檢調追查。由於蔡作雍是中研院院士、前國防醫學院院長,李鴻亦是國防醫學院校友,因此涉案的五百名醫師多為軍系出身之醫師,遍及全台醫院。而由於人數龐大,調查程序浩繁,偵辦進度緩慢,幾無下文。檢調稱,許多涉案醫師並無前科,且犯後態度良好,願意補繳逃漏稅款,通常可獲緩刑起訴。

與上述兩個案件比較,柯文哲的MG一四九約略是上述兩個案件的綜合體:一方面接受捐款,一方面進行研究,兼具醫師互助功能,柯帳還多了廠商捐款。在帳戶管理上,柯文哲目前尚未聞挪用公款的行徑,但他一手操控帳戶管理,確讓該帳戶的透明度低。再看帳戶的運用規則,MG一四九規定醫師可以先行捐款再利用計畫補助方式撥回,並規定留存比例;這樣的操作方式,更接近蔡作雍案的「假捐贈、真逃稅」的運作軌跡。

蔡作雍案一辦三年,至今看不到具體的司法進度;可見,這類大批醫師涉入之案件,讓司法人員辦起來備感棘手。假使因眼見蔡作雍案爆發,讓柯文哲對自己的帳戶心生警惕,從而修改規定,自行關掉「假捐贈、真逃稅」的便道;那麼,柯文哲應該可以過得了這一關。但是,如果那邊幾百名醫師的案子在辦,他這邊仍在利用空檔下手,那他恐怕沒有資格再向選民呼喊什麼道德。

共業!共業!多少罪過假汝之名豁免於刑。四○二也好,MG一四九也罷,頂著醫師的光環和共業的大傘,極可能在道德疑義下安然脫身。但無論如何,主事者若不把既有制度修正、漏洞堵住,如何對得起自己一身白袍?

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