2 July 2012. Taiwanese prosecutors applied to take former cabinet secretary-general Lin Yi-shih into custody earlier today. After 12 hours of interrogation, Lin confessed to having taken bribes. Lin reportedly took a bribe of NT$63 million (US$2.11 million) from a local businessman two years ago when he was a legislator of the ruling Kuomintang.
Chen Chi-hsiang, owner of Ti Yung Co, accused Lin of taking the bribe in return for a slag treatment contract from Kaohsiung-based China Steel Corporation. Lin later demanded millions more from Chen Chi-hsiang between February and March this year. The company owner refused to pay up. Lin pressured China Steel Corp, in which the government is a shareholder, to stop supplying slag to Ti Yung for treatment.
After the scandal was exposed, Lin resigned from his post on 29 June 2012 and pledged to return all his illegal gains to the national coffers.
Taiwanese Premier Sean Chen apologized to the public Monday for this graft scandal. The premier reiterated the importance of the integrity of government officials, saying he has asked the government’s anti-corruption agency to strengthen its work to prevent and combat corruption.