James Soong - 2000 Presidential Elections

2000 Presidential Elections

After losing the KMT presidential nomination to then-vice president Lien Chan, Soong ran as an independent in the 2000 Presidential elections. Soong advocated a gradual union between Taiwan and the mainland by first signing a non-aggression pact followed by the formation of a cross-strait union similar to the European Union. His platform called for the characterization of relations between the Mainland and Taiwan as neither foreign nor domestic. Although widely seen as the candidate most friendly to Mainland China, Soong took particular effort to counter the perception that he would "sell out" Taiwan.

The KMT responded by expelling Soong and his supporters from the party. In the final months leading to the 2000 elections, the KMT, then under Lee Teng-hui's leadership, sued Soong for theft, alleging that as party Secretary-General, he stole millions of Taiwan dollars in cash intended for the family of the late President Chiang Ching-kuo and hid the money in the Chunghsing Bills Finance Company. In defense he stated that the money in those bank accounts was in fact all from the KMT, and he insisted that the money transfer was authorized by then-KMT chairman, Lee Teng-hui. These statements have been substantiated by an internal KMT memo signed by Lee which were published by the court many years later.

The scandal hurt Soong's clean image. Initially leading in the polls, Soong narrowly lost the election with 36.84% of the vote to Chen Shui-bian of the Democratic Progressive Party with 39.3%. Lien came in a distant third with only 23.1%. One common belief from the pro-blue camp in Taiwan is that Lee Teng-hui favored the unpopular Vice President Lien Chan over the highly popular Soong in a deliberate effort to sabotage the Kuomintang and was secretly supporting Chen, despite the fact that Lee is supposed to favor Kuomintang's own nominee Lien. Some believe Lee feared Soong would expose the corruption in his administration, and undermine his legacy.

After losing the election, Soong's supporters protested in front of the KMT party headquarters and blockaded the building for a few days. They succeeded in pressuring Lee Teng-hui to resign as KMT Chairman in favor of Lien Chan. Within weeks, Soong and his supporters formed the People First Party (PFP), considered a spin-off from the KMT.

Prosecutors later dropped all charges against Soong in the Chunghsing Scandal. In 2003, the investigation was reopened, with former President Lee (now expelled from the KMT and the "spiritual leader" of the pro-independence Taiwan Solidarity Union) testifying against Soong in court. However, with the KMT allied with the People First Party for the 2004 presidential election, the KMT aided Soong in his defense, providing documents signed by Lee. KMT Chairman Lien Chan claimed the KMT was misled into filing the lawsuit against Soong. The KMT dropped the charges and is still trying to collect the money that had been returned and was deposited in the court by Soong.