Corruption in Taiwan

Corruption in Taiwan is noted for significant anti-corruption strides. Out of 180 countries, Taiwan, or the Republic of China, ranked 28th in Transparency International’s Corruption Perceptions Index (CPI) in 2023. Key issues needing improvements include graft, bribery, and unethical practices.

Heidao

A prevalent type of corruption in Taiwan involves Heidao or “black-gold politics”. This term is associated with the increased involvement of racketeers and self-serving businessmen in politics to protect their interests. Particularly, these political elements resort to bribery in order to wield and maintain their political influence. Corrupted officials include the police and judicial system including high-level government officials.

The most recent example was the case in 2024 when prosecutors began investigating alleged corruption and misconduct by the Hsinchu City police. This stemmed from the complaints of city councilors who accused the police and politicians of pressuring law enforcement officials relating to the accusation that they took bribes from electronic gambling operators. Around 21 were charged with violating Taiwan's Anti-Corruption Act and these involved police officers and high-ranking government officials.

Criminal elements who were able to penetrate the political system ensure political longevity through bureaucratic corruption such as money laundering and money politics. A legislator named Lo Fu-chu, for instance, is suspected of being part of the Tien Tau Meng syndicate. In 2001, he physically assaulted Diane Lee, a fellow legislator. Violent behavior was seen as one of the adverse impacts of the entry of criminal elements into Taiwanese politics. Aside from this, Lo also faced several other corruption charges. Prosecutors charged him with business fraud and embezzlement, with allegations that he pocketed about $38 million from several businesses through intimidation. He was also prosecuted for providing forged documents in order to obtain loans from two banks amounting to $23.4 million.

By 2021, the Legislative Corruption Scandal was uncovered. The case, which is considered the biggest in Taiwan's judiciary history, involved widespread bribe-taking, abuse of authority, conflict of interest, and other illegal activities committed by at least 200 members of the judiciary and the bureaucracy.

The heidao problem has become entrenched since it cultivated a symbiotic relationship between criminal elements and politicians. To address the issue and its related corrupt and unethical practices, the government instituted several initiatives focusing on raising public awareness of accountability, financial propriety, and personal ethics. However, due to weak anti-corruption apparatus as well as the noted lack of ethical conduct among civil servants, corruption associated with heidao persists.

Permissive legal framework

Critics, including members of Taiwan's Control Yuan, the government ombudsman, described the country's legal framework as weak, allowing for an environment permissive of graft. This is demonstrated in the case of the country's Lobbying Act, which - according to Control Yuan – was passed without strict enforcement of registration requirements. In 2014, for instance, Taiwan witnessed the Taipei Dome scandal. The awarding of the contract to build the structure to the Farglory Group has been hounded by allegations of irregularities, lack of transparency, and political corruption. Particularly, Chao Teng-hsiung, the company's CEO, was accused of bribing several of the city's officials to secure bids for the Taipei Dome. Investigation implicated several high-ranking government officials including then Taipei mayor Hau Lung-bin. His successor, Ko Wen-je, who eventually became the leader of Taiwan People Party, was later accused of graft for his policies in favor of the Taipei Dome's construction. Corruption in the awarding of contract has persisted over the years. In 2024, a Taipei City councilor, Chen Chung-Wen, was indicted for obtaining bribes from Taifo, which was awarded a 25-year government contract to build and maintain a fiber optic network.

Impunity as an offshoot of the permissive legal framework is also demonstrated in the case of twelve judges, and several prosecutors, who were arrested and prosecuted in 2010 for taking bribes from a legislator, who was on trial for corruption. These included the High Court judges, who overturned the legislator's conviction in the lower court. By 2024, several legislators from the KMT party and also the opposing party had been arrested or were facing increased scrutiny over allegations of corruption and bribery.

The flaw in the legal framework is also reflected in several cases of corruption in the green energy sector. For instance, several local officials were recently detained and investigated by the Ministry of Justice's Investigation Bureau and Agency Against Corruption for their participation in green energy-related corruption. The arrest was part of the government's crackdown on this type of corruption and involved these officials taking bribes from green energy providers.

It is noted that Taiwan has existing institutions that address corruption but these systems depend on the willingness of their officials to prosecute cases. Reform advocates also cite the weaknesses of existing legal frameworks such as the country's Anti-Corruption Act and the Criminal Code. These legal instruments regulate corruption among public officials. The lack of clear definitions such as what constitutes bribery allows for different interpretations. In Taiwan's’ statutes, bribery is not expressly defined and determination rests on judges on a case-to-case basis. There is also the broad definition of “public officials” in the Criminal Code, which covers those who are serving state organizations and local autonomous bodies. It is argued that this adversely affects legal enforcement and oversight. For example, officials accepting bribes within and outside of Taiwan are subject to the Anti-Corruption Act but it has no jurisdiction over the bribing of local officials outside of Taiwan.

Anti-corruption measures

The Taiwanese government has launched reform initiatives to curb corruption since it became democratic in 1992. These include the Criminal Code, the Anti-Corruption Act, and other statutes. While weaknesses exist, the passage of new laws and reform of existing ones has defined what constitutes corrupt behavior and addressed it accordingly.

The reform initiatives have been working as demonstrated in the improvement of Taiwan's ranking in Transparency International's Corruption Perception Index, which scores countries on a scale from 0 ("highly corrupt") to 100 ("very clean") and then ranks them by score; the country ranked first is perceived to have the most honest public sector. In 2020, the country ranked 28th of 180 countries but it marked an improved rating in 2021, as it placed in the 25th position with a score of 68. This score was maintained in 2022 but declined by one point in 2023. For comparison with regional scores, the highest score among the countries of the Asia Pacific region in 2023 was 85, the average score was 45 and the lowest score was 17. For comparison with worldwide scores, the best score in 2023 was 90 (ranked 1st), the average score was 43, and the worst score was 11 (ranked 180th).