Legislator Huang Kuo-chang Accuses FSC Chairperson Ku Li-hsiung of Conflict of Interest and Improper Intervention in Earthquake Fund Dispute

On May 31, 2018, a heated confrontation erupted during a session of the Finance Committee of the Legislative Yuan of the Republic of China. Legislator Huang Kuo-chang of the New Power Party fiercely questioned Ku Li-hsiung, then-Chairperson of the Financial Supervisory Commission (FSC), regarding a contractual dispute and compensation claim between the Taiwan Residential Earthquake Insurance Fund and its reinsurance broker, Aon Taiwan. Chen Ming-jen, then-Chairman of the Earthquake Fund (and brother of DPP Legislator Chen Ming-wen), publicly accused Ku of intervening in the dispute by instructing the fund not to pursue legal action against Aon and demanding that certain personnel be retained. Huang further challenged Ku's integrity, pointing out that Ku had previously served as Aon's legal counsel during his career as a private attorney, and accused him of failing to recuse himself, representing a severe conflict of interest and improper lobbying. Ku vehemently denied the accusations, asserting that the FSC's intervention was purely regulatory, aimed at ensuring the continuity of the national earthquake risk-diversification mechanism. He clarified that the past lawsuits he handled for Aon were entirely unrelated to the current dispute. Due to the conflicting testimonies and significant unanswered questions, Committee Chairman Tseng Ming-chung ordered the case to be forwarded to judicial prosecutors for a formal investigation, sparking widespread debate over government lobbying and political-commercial collusion in the Republic of China.