The World Games 2009 Kaohsiung Organising Committee (KOC) appointed Dentsu Taiwan and Dentsu Media Palette as agencies-of-record in April.
The Japanese agencies were responsible for all media planning and buying duties on the US$2 million account, which resulted in a global campaign to raise awareness of the event. In addition to the global account, Media Palette Taiwan worked on the $250,000 domestic TV planning and buying business for the event.
The corruption allegation surfaced earlier this month when the official, Chao Chia-pao, was detained on 18 November for allegedly receiving bribes from Dentsu Taiwan. The Taipei Times reported the bribe as US$77,000.
Chao is one of Kaohsiung Mayor Chen Chu’s closest aides. Chao was also one of the deputy CEOs for the Kaohsiung World Games and was in charge of awarding contracts for both international and domestic marketing.
Dentsu Taiwan issued a press release the same day that Chao was detained, stating that the company could not comment on the matter as it was under investigation.
Media contacted Dentsu Taiwan vice-president and spokesperson Hu Yan Shiun, and asked whether there had been subsequent developments in the case. Hu said: “Of course, there have been, but we can’t release this information. Dentsu Taiwan is also conducting an internal investigation.”
The story also has a political dimension. Both Kaohsiung mayor Chen Chu and aide Chao are longtime activist members of the Democratic Progressive Party, which lost power when its eight-year rule ended with the election and inauguration of Kuomintang president Ma Ying-jeou last year.