Taiwan court allows legislature speaker to keep party post

TAIPEI (Reuters) - The speaker of Taiwan's legislature will be able to retain his party standing, a court ruled on Wednesday, in the latest development in a dispute seen as a potential threat to Taiwan's China-friendly ruling party ahead of local elections this year.

Wang Jin-pyng, widely viewed as the government's second most powerful figure, had been expelled from the ruling Kuomintang (KMT), or Nationalist Party, by Taiwan's president Ma Ying-jeou in September for alleged lobbying in a legal case.

Ma had condemned Wang's actions as "the most serious infringement" of the independence of Taiwan's judiciary.

But in Wednesday's judgment, the Taipei district court said, "The court confirms the party affiliation of the plaintiff."

Despite the acrimony between the two politicians, Wang emphasized national unity under Ma's leadership in a statement following the ruling.

Both Ma and Wang are members of Kuomintang, which has placed close ties with mainland China at the top of its legislative agenda.

The party faces a challenge maintaining power in local elections due to be held in the fall, in the face of a stagnant economy and overall dissatisfaction with Ma's policies.

Kou Chien-wen, an assistant professor of political science at Taiwan's National Chengchi University, said the rift could further threaten the party's chances.

"This is why Wang mentioned Ma's leadership in his statement," Kou said. "If people view a continued divide, the consequences could be significant."

It is unclear whether the verdict will be taken to a higher court in appeal.

(Reporting by Michael Gold; Editing by Clarence Fernandez)