By Sam Garcia / Staff writer, with CNA

The Legislative Yuan’s Finance Committee today voted to freeze NT$30 million (US$950,781) in funding for the Asian Development Bank (ADB), with the funds to remain frozen until the bank responds and the Ministry of Finance reports to lawmakers.

The committee today continued its review of the Ministry of Finance’s expenditure budget and financing arrangements under the central government’s budget for this year.

The ministry has budgeted NT$126.84 million this year for “contribution expenditures,” all of which are to be given to funds associated with the ADB, Chinese Nationalist Party (KMT) Legislator Lai Shyh-bao (賴士葆) said, adding that this is an increase of NT$44.26 million from 2024.

Photo: screen grab from the Asian Development Bank Web site via CNA

Considering ADB’s change of Taiwan’s membership designation to “Taipei,China” and the lack of any concrete improvement despite Taiwan’s protests, as well as rising national defense spending, Lai proposed cutting NT$3 million from the allocation.

The Republic of China (Taiwan) was one of the founding members of the ADB, yet its membership designation has been downgraded, Lai said.

Aside from the annual fee of NT$1 million, “nothing else should be paid,” he added.

Democratic Progressive Party (DPP) legislators Lee Kuen-cheng (李坤城) and Kuo Kuo-wen (郭國文) also proposed freezing NT$2 million of a NT$33.196 million allocation for the ADB Domestic Resource Mobilization Trust Fund, citing Taiwan’s downgraded membership designation since 1986 under Chinese pressure.

The funds should not be released until the Ministry of Finance submits a written report within two months, they said.

As the ADB unfairly singles out Taiwan with its designation, Taiwan should stop funding the bank until the designation is corrected, DPP Legislator Wu Ping-jui (吳秉叡) said.

Taiwan has repeatedly raised the issue of its designation with ADB, Minister of Finance Chuang Tsui-yun (莊翠雲) said.

Apart from the name, Taiwan has not been treated differently, Chang said, adding that it is more important to continue substantive participation than risk being shut out.

Donations are made in line with other contributing countries, with each contribution increasing by 0.4 percent compared to the previous one, which is why the total has risen by more than NT$40 million, Department of International Fiscal Affairs Director Lee Ming-chi (李明機) said.

If Taiwan does not contribute, the Asian Development Fund could gradually shrink in size, potentially affecting its use by diplomatic allies such as Palau, Lee said.