Contractor in Child Exploitation Case Wins Bid; Ministry of Labor to Consult Authorities

(Central News Agency Reporter Tseng Yi-ning, Wu Hsin-yun Taipei June 30) Legislator Chen Ching-hui of the Kuomintang criticized today that the Ministry of Labor has already spent over NT$107.6 billion of this year's budget by the end of May, and that the responsible person of a contractor that won a NT$3.65 million bid was involved in child sexual exploitation. The Ministry of Labor responded that the expenditures were statutory obligations, and that there are no explicit restrictions on procurement case disputes, so they will consult the governing authority of the Government Procurement Act.

Chen Ching-hui stated on Facebook today that according to statistics, the Ministry of Labor had accumulated expenditures of NT$107.6 billion by the end of May this year. Among these, the responsible person of the winning bidder, Zan Dian Zi Digital Marketing Co., Ltd., for the "114-115 Employment Service and Vocational Training Social Platform Maintenance Procurement Case" by the Workforce Development Agency of the Ministry of Labor, had a prior record of child sexual exploitation.

Chen Ching-hui pointed out that the responsible person's elder brother, in 2001, lured a minor girl out for a meeting via an online chat room, drugged and sexually assaulted her, and then sold the recorded process on discs. A total of 7 people were victimized. The responsible person then assisted in copying the videos and image files, producing discs, setting up a website, and advertising and selling them on multiple adult websites for profit, for which he was sentenced to 1 year imprisonment, suspended for 3 years, according to the "Act for the Prevention of Cruelty to Children and Youth Sexual Exploitation."

Chen Ching-hui criticized that the budget for this procurement case was NT$3.65 million, and that in recent years, the Ministry of Labor and its affiliated units have extensively collaborated with Zan Dian Zi for social media maintenance. The total reserve price for related bids amounts to NT$59,649,170; among them, three units, namely the Central, Changhua, and Nantou Branch of the Workforce Development Agency of the Ministry of Labor, the Bureau of Labor Insurance of the Ministry of Labor, and the Northern, Hsinchu, Yilan, Hualien, Kinmen, and Matsu Branch of the Workforce Development Agency of the Ministry of Labor, total NT$37,849,142.

In response, the Ministry of Labor stated today that the FY115 general budget was not deliberated within the statutory timeframe as required by the Budget Act. Therefore, the execution of related budgets is handled in accordance with the provisions of the Budget Act. Original recurring expenses beyond new projects are disbursed according to the previous year's execution amount and are used for expenditures required to fulfill other statutory obligations. Additionally, new projects approved by the Legislative Yuan can be disbursed in advance.

The Ministry of Labor said that the NT$107.6 billion executed by May this year includes funds for replenishing the Labor Insurance Fund, subsidizing workers' participation in labor insurance and health insurance premiums, disbursing 20% of parental leave salaries, and compensating for the difference in maternity benefits from labor insurance, as well as personnel maintenance costs and other statutory obligation expenditures.

Regarding the media promotion case for FY115 mentioned in the post, the Ministry of Labor also stated that it was publicly tendered and selected in accordance with the "Government Procurement Act." As for the social platform maintenance by the subordinate agencies of the Workforce Development Agency and the Bureau of Labor Insurance, it is conducted in accordance with Articles 101 to 103 of the current Procurement Act. The qualification review for bidders includes statutory disqualification situations, but there is no review mechanism for "the responsible person's personal past criminal record."

The Ministry of Labor stated that for the performance of this contract, they will continue to strengthen the review and supervision mechanisms to ensure that public information is released in compliance with contract specifications and the agency's stance. Furthermore, current procurement laws and regulations do not explicitly restrict individuals with specific prior convictions from establishing companies and bidding. They will subsequently consult the governing authority of the "Government Procurement Act" for further discussion.

According to Article 9 of the Government Procurement Act, the governing authority of the Government Procurement Act of the Republic of China is the Public Construction Commission, Executive Yuan. (Editor: Su Lung-chi) 1150630

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