Friday 21 November 2008

Chen Denies New Claim of Embezzling Funds

Former Taiwanese president Chen Shui-bian has denied a fresh accusation that he embezzled funds intended to promote the island while he was in office.

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Guanyu said...

Chen Denies New Claim of Embezzling Funds

AFP in Taipei
20 November 2008

Former Taiwanese president Chen Shui-bian has denied a fresh accusation that he embezzled funds intended to promote the island while he was in office.

The island’s Next magazine said yesterday that prosecutors were looking into whether Mr Chen and his former right-hand man, Chiou I-jen, had pocketed US$25 million in diplomatic funds.

Mr Chen’s office issued a statement dismissing the allegations as “a malicious attempt to confuse public opinion” and to “smear the former government’s diplomatic effort”.

Last week Mr Chen was remanded on allegations of embezzlement, money laundering, taking bribes and forgery in a string of scandals implicating his family and top officials in his government.

He accused the new Kuomintang administration, led by President Ma Ying-jeou, of framing him and said the corruption charges were politically motivated. Mr Chen began a hunger strike on Wednesday last week to protest against his detention. He was taken to hospital for treatment on Sunday on a prison doctor’s advice. He was released from hospital yesterday and sent back to the detention centre. He left hospital by ambulance while dozens of supporters gathered and sounded air horns as he departed.

Doctors said earlier yesterday that Mr Chen’s condition had visibly improved although he was still refusing to eat.

Next magazine alleged yesterday that Mr Chiou had taken US$5 million in cash from Taiwan’s Foreign Ministry that was intended to promote the island’s bid to join the World Health Organisation.

Another US$20 million, which Mr Chiou also received in cash, was supposed to be given to Panama’s president, Martin Torrijos, as a “political donation” to prevent the country from switching diplomatic recognition to Beijing, the report said.

The magazine cited an unnamed source as saying prosecutors suspected Mr Chen could have deposited the cash in overseas bank accounts while he was on state visits abroad.

Mr Chiou was detained last month on suspicion of embezzling US$500,000 in diplomatic funds while he was secretary general of the National Security Council.

Prosecutors said Mr Chiou had received the money from the Foreign Ministry in travellers cheques, which were found to have been cashed at several overseas casinos.