Wednesday 26 November 2008

Fugitive Banker Freed After Grilling

Witness expected to help prosecutors in case against Chen and wife

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Fugitive Banker Freed After Grilling

Witness expected to help prosecutors in case against Chen and wife

Lawrence Chung in Taipei
26 November 2008

Prosecutors in Taiwan have released a former fugitive banker on NT$100 million (HK$23 million) bail after questioning him for 12 hours over his alleged role in a bribery scandal implicating ex-president Chen Shui-bian and his wife.

Jeffrey Koo Jnr was released on bail because he was unlikely to flee or tamper with evidence, said Chen Yun-nan, spokesman for the Supreme Court Prosecutors’ Office.

Mr. Koo, former vice-chairman of Taipei-based Chinatrust Financial Holding, returned to Taiwan after hiding out in Japan for two years over alleged irregularities in the buyout of a rival bank. Prosecutors issued a warrant in 2006 for his arrest.

The spokesman said the taskforce had sent a prosecutor to Japan to persuade him to return for questioning but denied news reports that he would receive leniency in return.

Mr. Koo’s return is expected to help prosecutors in their investigations into alleged bribery that implicated the former president and his wife, Wu Shu-chen.

Prosecutors told the island’s media that Mr. Koo had admitted he introduced his uncle, Koo Cheng-yun, chairman of Taiwan Cement, to Tsai Ming-che, who claimed he was a special assistant of the former first lady.

Through Mr. Tsai, his uncle struck a NT$10 billion deal with the administration of the government-run Hsinchu Science-Based Industrial Park to sell land to the park on condition that Mr. Tsai be given a NT$400 million commission.

Wu admitted during questioning last week that she received NT$200 million from Mr. Tsai, but claimed it was for political donations rather than a commission or bribe. She accused Mr. Tsai of “swallowing” the rest of the fund.

The media reported that Mr. Koo had given a NT$100 million donation to the Democratic Progressive Party’s 2004 presidential campaign, but he said he had no idea why the fund ended up in the overseas bank account of the Chen family.

Mr. Chen, his wife, son, daughter-in-law and brother-in-law have been named as the prime suspects in an overseas US$21 million money laundering case. Mr. Chen and his wife have also been suspected of taking at least NT$500 million in bribes. The two are also suspected of embezzling NT$14.8 million in secret state funds when Mr. Chen was president between 2000 and May this year.

So far, prosecutors have indicted only Wu on charges of embezzling state funds, for which she is being tried. They detained Mr. Chen of the DPP on November 12 on suspicion of bribery, money laundering and embezzlement, prompting the former president to protest against what he claimed was political persecution by his successor, Ma Ying-jeou of the Kuomintang.

Mr. Chen has been on hunger strike, saying his detention is the result of Mr. Ma’s collaboration with the mainland in silencing pro-independence advocates in Taiwan.

Even while in custody at the Tucheng Detention Centre, Mr. Chen has remained highly vocal.

He has issued statements through his lawyer condemning Mr. Ma and the judiciary for locking him up.

He has also called on his supporters to continue their protests against the government.