TAIPEI (Taiwan News) -- A total of 10 persons are now under investigation after news broke on Monday (July 22) that National Security Bureau (NSB) agents tried to smuggle 9,800 cartons of cigarettes into Taiwan using President Tsai Ing-wen’s (蔡英文) flight back from a Caribbean trip as a cover.

The New Taipei City Investigation Bureau officers have questioned 10 people over the incident, including an NSB agent surnamed Wu (吳), and transferred them to the Taipei District Prosecutor's Office for further investigation, reported CNA. Wu and another prime suspect surnamed Chang (張) are being held in custody while eight other suspects were released on bail.

The Prosecutor's Office said that the two suspects being detained are being charged with violating the Anti-Corruption Act (貪污治罪條例) for shipping prohibited items by public transport and evading taxes. For these crimes, the accused face penalties of life imprisonment or fixed-term imprisonment of more than 10 years, and fine of up to NT$100 million, according to the report.

According to prosecutors, Wu's and Chang's statements conflict with each other, and whether they are accomplices remains to be clarified. With Wu and Chang being investigated for serious crimes involving corruption, and due to the risk of colluding with accomplices or witnesses, prosecutors asked that the two be kept in custody.

The whole case started when the NSB was informed that a large number of cigarettes would be smuggled into the country by NSB personnel. They were told that rogue NSB agents were planning on taking advantage of the president's trip to smuggle contraband past customs agents.



Suspect being taken in for questioning. (CNA photo)

At 1:25 p.m. on Sunday, Customs officers intercepted five vehicles pretending to be part of the presidential motorcade as they tried to leave the airport through a special passage. Officers took the vehicles directly to a Taipei Customs Office warehouse.

According to the Customs Administration, officers found 9,200 cartons of cigarettes had been smuggled by NSB personnel inside the vehicles, with a market value over NT$6.45 million (US$207,000). Customs officials said that an additional 600 cigarettes were found hidden in luggage inside the presidential jet, bringing the total of smuggled cigarettes to 9,800 cartons, reported Liberty Times.

The scandal broke when opposition New Power Party lawmaker Huang Kuo-chang (黃國昌) wrote on his Facebook page that an NSB agent had tried to smuggle 9,200 cartons of cigarettes past customs as President Tsai was arriving back into the country from a four-nation trip to the Caribbean Monday morning.

Customs confirmed his story and said the tobacco products had all been seized and moved to a warehouse. The main suspect, Wu, had reportedly used an official at China Air Lines (CAL) to buy the cigarettes duty-free at Taiwan Taoyuan International Airport and store them at an airline catering company property awaiting Tsai’s return.

Later media reports suggested that this had been Wu’s third similar operation using the president’s overseas voyages. President Tsai was reported to be furious about the incident and asked for a judicial investigation of the case.

On Monday, NSB Director General Peng Sheng-chu (彭勝竹) officially resigned from his post after news of the smuggling scandal broke. The officer in charge of presidential bodyguards, Chang Chieh (張捷), had reportedly asked to be disciplined and was awaiting a decision on his transfer to another function. </s> By Ann Maxon / Staff reporter

New Power Party Legislator Huang Kuo-chang (黃國昌) yesterday called for the resignation of China Airlines Ltd (CAL, 中華航空) chairman Hsieh Shih-chien (謝世謙) after the company denied being complicit in an alleged smuggling case involving a National Security Bureau (NSB) agent.

Huang on Monday said that the official, Wu Tsung-hsien (吳宗憲), attempted to smuggle 9,200 cartons of cigarettes worth more than US$200,000 when he returned to Taiwan with President Tsai Ing-wen (蔡英文) from a state visit to the Caribbean earlier in the day.

Wu, who accompanied Tsai on her trip, allegedly pre-ordered the cigarettes using China Airlines’ online duty-free store with help from the airline, Huang said.

It was written on the order that the cigarettes were to be picked up on the return of the president’s airplane, but they were never delivered to the plane, he added.

Instead, the cigarettes were kept in the airline’s storage facility until they were transported to five trucks that later joined Tsai’s motorcade leaving the airport, he said.

While China Airlines on Monday insisted that it had followed procedures in handling the purchase, Huang said that the company was “full of lies” and avoided taking responsibility.

It sold Wu 9,200 cartons of cigarettes, despite custom laws stipulating that only certified tobacco sellers can import more than five cartons of cigarettes, he said.

The airline also left no records that the cigarettes were being kept in its storage facility, he said, adding that the cigarettes had not been logged into the facility’s inventory and that no records indicated that the cartons had been moved to the plane or returned to the facility.

Huang said that shortly before the news conference yesterday, a China Airlines representative had told him that the chairman knew nothing about the matter and was unable to provide any information about the case.

“If that is the attitude of the chairman, I would say please resign,” he said.

Huang added that National Security Council Secretary-General David Lee (李大維) still owes the public an explanation.

“Please tell us if anyone in the council is involved in the case. How can the secretary-general of the National Security Council be hiding this whole time?” he asked.

Two other people on the flight ordered duty-free goods that were not sent to the plane for pickup, Huang said.

The legislator added that he could not reveal further details as they were part of an ongoing investigation. </s> TAIPEI (Taiwan News) – An employee of the National Security Bureau (NSB) tried to smuggle NT$6.45 million (US$207,000) worth of cigarettes into Taiwan on board of President Tsai Ing-wen’s flight back from a Caribbean trip.

Tsai arrived back in the country Monday (July 22) after a tour of its four allies Haiti, Saint Christopher and Nevis, Saint Vincent and the Grenadines and Saint Lucia with stopovers in New York City and Denver, Colorado.

The NSB staff member went through a senior official at China Air Lines (CAL) to buy 9,200 tax-free cigarettes and bring them into Taiwan on the presidential plane, New Power Party lawmaker Huang Kuo-chang (黃國昌) wrote on his Facebook page.

However, customs officials found the tobacco products Saturday morning and impounded the whole batch, the United Daily News reported. The cigarettes had been moved to the main customs warehouse in Taipei.

In order to prevent smugglers using diplomatic privilege to bring banned products into Taiwan, customs would sit down with representatives of the Presidential Office and of security agencies to discuss more efficient measures, the report said.

The NSB said it could not comment on the case as the incident was already being handled by the judiciary.

Huang demanded disciplinary action both against the NSB employee and against the CAL official, according to the Liberty Times. </s> BEIJING (AP) — China said Friday that the U.S. should not allow an ongoing visit by Taiwan’s president to New York and that it would impose sanctions on American companies that sell arms to the self-governing island as part of an expected $2.2 billion deal.

President Tsai Ing-wen is in New York on a two-night “transit” stop en route to an official visit to four Caribbean nations. She was scheduled to deliver a speech to a U.S.-Taiwan business summit and attend a dinner with members of the Taiwanese-American community.

“We urge the U.S. to abide by the ‘one China’ principle and … not allow Tsai Ing-wen’s stopover, cease official exchanges with Taiwan and refrain from providing any platform for separatist Taiwan independence forces,” Chinese foreign ministry spokesman Geng Shuang said at a daily briefing.

In a separate statement on the foreign ministry’s website, Geng announced sanctions on companies involved in the arms deal, which he said “undermines China’s sovereignty and national security.” The four-sentence statement did not provide any details about the sanctions.

The Trump administration said Tuesday that it is proposing a $2.2 billion sale that would include 108 Abrams tanks and 250 Stinger surface-to-air missiles. The tanks represent a significant upgrade to Taiwan’s aging fleet.

Taiwan split from China during a civil war in 1949, and Tsai has resisted Chinese pressure for reunification under the “one country, two systems” framework that governs Hong Kong.

The United States recognizes Beijing as the government of China, but provides military and other support to Taiwan. China objects to such support as an interference in what it considers its internal affairs.

Chinese Foreign Minister Wang Yi, on a visit to Hungary, said his country has grave concern about Tsai’s U.S. visits. She is scheduled to make another two-night stop on her way home.

She is visiting Haiti, St. Kitts and Nevis, St. Vincent and the Grenadines and St. Lucia on a 12-day trip. The island nations are among the few countries that recognize Taiwan instead of China.

Before departing, Tsai said Thursday that she wants to share the values of democracy and perseverance with Taiwan’s friends.

“Our democracy has not come easily and now is facing the threat and technological penetration of foreign forces,” she said, in a veiled reference to China.

Copyright © 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed. </s> TAIPEI, Taiwan (AP) — Taiwan on Saturday defended a proposal to purchase $2.2 billion in arms from the U.S., following a Chinese announcement that it would sanction any American companies involved in the deal.

U.S. weapons help strengthen Taiwan’s self-defense in the face of a growing military threat from China, the defense ministry said.

“The national army will continue to strengthen its key defense forces, ensure national security, protect its homeland and ensure that the fruits of freedom and democracy won’t be attacked,” the ministry said in a statement.

China announced late Friday that it would impose sanctions on any U.S. enterprises involved in the deal, saying it “undermines China’s sovereignty and national security.”

Taiwan split from China during a civil war in 1949, but the mainland still considers the self-governing island as part of its territory.

The U.S., which recognized Beijing as the government of China in 1979, does not have formal diplomatic ties with Taiwan, but U.S. law requires that it provide Taiwan with sufficient defense equipment and services for self-defense.

The Trump administration announced the proposed $2.2 billion sale, which would include 108 Abrams tanks and 250 Stinger surface-to-air missiles, earlier in the week.

Taiwanese President Tsai Ing-wen, speaking in New York on Friday, said that her government has strengthened Taiwan’s national defense to protect its democracy, according to a transcript posted on the presidential office website.

China has objected to her U.S. visit, which Taiwan calls a “two-evening transit stop” on the way to Haiti and three other Caribbean nations that recognize Taiwan.

“We urge the U.S. to abide by the ‘One China’ principle and … not allow Tsai Ing-wen’s stopover, cease official exchanges with Taiwan and refrain from providing any platform for separatist Taiwan independence forces,” foreign ministry spokesman Geng Shuang said Friday in Beiijng.

Tsai dismissed Chinese criticism of both her visit and the arms deal. “We don’t need our neighbor to make irresponsible remarks,” she told reporters in New York, according to Taiwan’s official Central News Agency.

She has rejected Chinese pressure to reunite Taiwan and China under the “one-country, two-systems” framework that governs Hong Kong. She said Friday that the people of Taiwan stand with the young people of Hong Kong who are fighting for democratic freedoms in ongoing protests.

“Hong Kong’s experience under ‘one country, two systems’ has shown the world once and for all that authoritarianism and democracy cannot coexist,” she said.

Copyright © 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed. </s> (L-R) Former premier William Lai, Taiwan President Tsai Ing-wen and new premier Su Tseng-chang join hands after a news conference in Taipei, Taiwan, January 11, 2019.

TAIPEI - Taiwan on Friday appointed the former chairman of its ruling pro-independence party as premier, after the incumbent resigned along with the entire cabinet, in response to local election defeats.

November's election losses presented a major challenge to President Tsai Ing-wen, who faced mounting criticism at home over her reform agenda while facing renewed threats from China, which considers the self-ruled island its own.

Tsai appointed Su Tseng-chang, a two-term former chairman of her Democratic Progressive Party (DPP), saying Taiwan faced challenges amid rising Chinese threats and trade tension between key backer the United States and China.

"Taiwan's democracy and development must face certain challenges," Tsai said, adding that China was looking to force its "one country, two systems" structure on the island.

Su vowed to lead the administration amid the challenges and learn from earlier mistakes.

"The situation is difficult and the task is tough," he said.

Su's appointment followed the widely expected resignation of William Lai, the second premier to quit since Tsai took office in 2016, in line with a practice of leaders quitting when their party loses a major election.

"I must resign to take responsibility for the election defeat," Lai told a cabinet meeting earlier on Friday.

Taiwan's premier forms the cabinet and runs the government on a day-to-day basis. New ministerial appointments are expected soon.

Just a year ahead of the next presidential election, analysts say Tsai and the new premier must shore up public support for the government's policy on China ties and further boost the island's export-reliant economy in a challenging year amid the China-US trade war.

Su was appointed premier in 2006 by former president Chen Shui-bian, who infuriated Beijing and strained Taiwan's relationship with the United States during his tenure from 2000 to 2008.

Su, nicknamed "light bulb" by his supporters for his bald head, has led Taiwan's most populous New Taipei City for years. He was defeated by a candidate from the China-friendly opposition Kuomintang in November.

Tsai has said her administration would reflect on the election defeats but would stand firm to defend Taiwan's democracy in the face of renewed Chinese threats.

Chinese President Xi Jinping, who has stepped up pressure on Taiwan since Tsai became president, threatened this month to use force to bring the island under Beijing's rule and urged "reunification".

"The new premier not only has to focus on domestic matters but must also pay much more attention to cross-Strait and national security issues," Yao Chia-wen, a senior adviser to the president, told Reuters.

He said the new premier must deal with issues such as the prevention of swine fever from China and possible election interference.

Some from within the embattled leader's party have urged Tsai not to seek re-election. She has not explicitly said whether she would run for president in 2020 but has warned against Chinese efforts to interfere with elections. </s> Tsai Says Taiwan’s 2020 Election Will Be a Test of Its Democracy

(Bloomberg) -- Taiwan’s presidential election next year will be a test of its democracy and value system, President Tsai Ing-wen said at the end of a U.S. trip that drew rebuke from China.

“Voters in Taiwan will be focused on the future of our country, especially whether we can keep our democratic and freedom way of life,” she said at a press conference in Denver on Saturday, and televised at the Presidential Office in Taipei.

Seeking a second term, Tsai will face Kuomintang nominee Han Kuo-yu -- a firebrand mayor who advocates closer ties with China -- in the election on Jan. 11. She, on the other hand, dismisses Beijing’s claims to sovereignty over Taiwan and has strengthened the island’s informal alliance with America.

The president has also sought to bolster Taiwan’s defense capabilities against a potential Chinese invasion with a series of military-hardware purchases. Taiwan and China have been governed separately since 1949, and only 17 countries have formal diplomatic ties with Taiwan. Tsai’s Democratic Progressive Party advocates formalizing Taiwan’s independence.

Tsai stopped over in Denver after an official trip to four Caribbean countries that have diplomatic ties with Taiwan. She was also in New York City before visiting Haiti, St. Kitts and Nevis, St. Vincent & the Grenadines and Saint Lucia.

To contact the reporter on this story: Chinmei Sung in Taipei at csung4@bloomberg.net

To contact the editors responsible for this story: Samson Ellis at sellis29@bloomberg.net, Shamim Adam, Stanley James </s> TAIPEI (Reuters) - Taiwan will appoint the ruling pro-independence party’s former chairman as premier, official media reported on Friday, after incumbent William Lai resigned along with the entire Cabinet in response to local election defeats.

The election losses in November presented a major challenge to President Tsai Ing-wen, who came under mounting criticism at home over her reform agenda while facing renewed threats from China, which considers Taiwan its own.

Tsai will appoint Su Tseng-chang, the former chairman of the Democratic Progressive Party (DPP) for two terms, the official Central News Agency reported early on Friday, citing unidentified sources.

It said Su’s appointment would follow the widely expected resignation of Lai, the second premier to quit since Tsai took office in 2016. It is standard practice in Taiwan for leaders to quit when their party loses a major election.

“I must resign to take responsibility for the election defeat,” Lai told a Cabinet meeting on Friday after he and other ministers resigned.

Taiwan’s premier forms the Cabinet and runs the government on a day-to-day basis.

Tsai was expected to announce the new premier in a media briefing later on Friday, which would be followed by new ministerial appointments.

With just about a year until the next presidential election, analysts say Tsai and the new premier need to shore up public support for the government’s policy on relations with Beijing and further boost the island’s export-reliant economy in a challenging year amid a China-U.S. trade war.

Su was appointed premier in 2006 by former president Chen Shui-bian, who infuriated Beijing and strained Taiwan’s relationship with the United States during his tenure from 2000 to 2008.

The folksy Su, popular among the DPP’s core supporters, has led Taiwan’s most populous New Taipei City for years. He was defeated by a candidate from the China-friendly opposition Kuomintang in November.

Tsai has said her administration would reflect upon the election defeats but would stand firm to defend Taiwan’s democracy in the face of renewed Chinese threats.

Chinese President Xi Jinping, who has stepped up pressure on Taiwan since Tsai became president, threatened earlier this month to use force to bring the island under Beijing’s rule and urged “reunification”.

“The new premier not only has to focus on domestic matters but must also pay much more attention to cross-strait and national security issues,” Yao Chia-wen, a senior adviser to the president, told Reuters.

He said the new premier must deal with issues including the prevention of swine fever from China, as well as possible election interference.

Some from within the embattled leader’s party have urged Tsai not to seek re-election. She has not explicitly said whether she would run for president in 2020 but has warned against Chinese efforts to interfere with elections. </s> TAIPEI: Taiwan President Tsai Ing-wen resigned as leader of the ruling Democratic Progressive Party (DPP) on Saturday (Nov 24) after the pro-independence party suffered major defeats in key mid-term polls, a blow to her prospects for re-election.

"As chairperson of the ruling party, I will take complete responsibility for the outcome of today's local elections," Tsai told reporters.

"I resign as DPP chairperson. Our efforts weren't enough and we let down all our supporters who fought with us. I want to express our most sincere apologies."

DPP lost its traditional stronghold of Kaohsiung city for the first time in 20 years, and was also defeated in the second-largest city of Taichung.



The local elections were seen as a mid-term test for Tsai, as she faces a backlash over domestic reforms and concerns about deteriorating ties with China.



The results of the polls, being held a little more than a year ahead of Taiwan's next presidential elections, will be closely watched in China, which claims self-ruled and proudly democratic Taiwan as its own. 



Both Kaohsiung and Taichung were won by the China-friendly opposition, the Kuomintang.

Tsai said the DPP would reflect on the defeat, but she vowed to press on.

"Continuing reforms, freedom and democracy, and protecting the country's sovereignty are the mission that the DPP would not abandon," she told reporters.

Tsai said she would not accept the resignation of her premier William Lai, who had offered to quit earlier in the evening.

Lai wrote on his Facebook page: "The election results showed that people are not satisfied. For this, I feel sorry, and have offered my resignation to President Tsai Ing-wen to accept political responsibility."



The DPP held on in two of its other strongholds though: Tainan in the island's south and Taoyuan in the north.

Votes are still being counted in Taiwan's capital Taipei, where the incumbent mayor Ko Wen-je, an independent, is in a close race with the Kuomintang's Ting Shou-chung, and the DPP is running a distant third.

Taiwan television stations reported a high turn out, with some polling stations in parts of Taipei and Kaohsiung remaining open past 4pm (0800GMT) when the polls were supposed to close.

Candidates fanned out across the island to press the flesh and canvass votes, and held noisy, colourful rallies that have become the hallmarks of Taiwan's vibrant democracy, in marked contrast to China where the Communist Party tolerates no dissent to its rule.

Tensions across the Taiwan Strait have heightened with China conducting military drills around the island and snatching away Taiwan's dwindling number of diplomatic allies.

Tsai's domestic reform initiatives, from the island's pension scheme to labour law, have also come under intense voter scrutiny recently.

Confidence in the government has waned in recent months after reform moves upset both the opposition and some supporters, who said Tsai had backed away from promises to reduce the deficit and cut pollution.

Underscoring Tsai's challenge are a series of public votes also held on Saturday on whether to make same-sex marriage legal, an issue which has deeply divided Taiwan.

"This is a small step for myself, but a big step for mankind," Chi Chia-wei, a veteran gay rights activist who had petitioned Taiwan's constitutional court to take up the issue, told Reuters after he voted.

Tsai has made little progress despite campaigning on a promise of marriage equality in the run-up to elections in 2016.

In Asia's first such ruling, Taiwan's constitutional court declared in May last year that same-sex couples had the right to legally marry, and set a two-year deadline for legalisation.

Voters will also be asked whether the island should join the 2020 Tokyo Olympics as Taiwan, rather than "Chinese Taipei" – the name agreed under a compromise signed in 1981.

A vote to compete under a Taiwan banner would further rile Beijing, which has never renounced the use of force to bring the island under its control.

Results for the referendum votes may not come out until the early hours of Sunday morning, according to election officials.
Taiwan Customs officers discover 9800 cartons of cigarettes worth more than 200,000 USD smuggled in five trucks of presidential motorade when President Tsai Ing-wen has returned from an official trip to the Caribbean and leaves the airport via a VIP lane. A security agent of National Security Bureau within Tsai's entourage allegedly pre-ordered the cigarettes duty-free from China Airlines and stored them at a warehouse of the airline's catering company at Taoyuan International Airport. National Security Bureau Director-General Peng Sheng-chu resigns over the scandal on the following day.