Kinmen Reaches Consensus on 115th Annual Budget; Council: Rationally Supervising KLL's Shortcomings

Central News Agency reporter Wu Wen-rong, Kinmen, July 13

The Ministry of the Interior intervened in negotiations over Kinmen County's 115th annual budget, resulting in a consensus between the county government and council to reduce the Kinmen Liquor Xiamen Company's budget by 90%. The Council stated today that this move is not intended to deliberately hinder cross-strait market expansion, but reflects its rational supervisory stance in urging Kinmen Liquor to confront long-accumulated operational shortcomings.

Kinmen County Deputy Magistrate Chen Xiang-lin, speaking to the media after the conclusion of today’s temporary council session, said that the county government had submitted its 115th annual budget proposal to the Ministry of the Interior for mediation. Following the mediation, the Ministry urged both the county government and council to actively negotiate. The final outcome is that, except for a 90% reduction in the annual budget for the Kinmen Liquor Xiamen branch, all other items will be executed according to the results of the third reading of the budget passed on April 23. "We will proceed accordingly," Chen stated.

The Kinmen County Council convened a temporary session today to explain the council's decision to cut the Kinmen Liquor Factory Xiamen Company's 115th annual affiliated unit budget.

In a press release, the Kinmen County Council stated that the rationale for advocating a significant reduction in the 115th annual budget for the Kinmen Liquor Xiamen Company includes major losses arising from disputes over fulfillment of the general distributor contract, severe localization of senior management with mainland Chinese personnel, and the mass departure of Taiwanese management staff.

The Council pointed out that despite a substantial operational budget injection in 114th year, the overall operational performance of the Kinmen Liquor Xiamen Company fell far below expectations, indicating a disconnect between past budget allocations and operational performance. Given that Kinmen Liquor's revenue contributes directly to the county treasury and affects the public welfare of all residents, the Council will strengthen regular questioning and annual performance reviews. Going forward, any budget proposal for the Xiamen Company must include comprehensive operational performance evidence to prevent inefficient resource allocation.

The Council also stated that as the largest shareholder of Kinmen Liquor Company, the county government should actively fulfill its shareholder oversight responsibilities, comprehensively restructure the mainland market management team, and establish institutionalized mechanisms for dispatching and rotating Taiwanese professional talent (including local Kinmen residents) overseas.

The Council expressed hope that Kinmen Liquor Company will seize this reform opportunity to comprehensively overhaul shortcomings in cross-strait marketing strategies, channel operations, and internal management. By strengthening its operational foundation through 'organizational adjustment, human resource optimization, and risk control,' the company should maximize the effectiveness of limited public resources and respond to the earnest expectations of all Kinmen residents with stable and transparent operational results. (Edited by Chen Jen-hua) 1150713