Sunday 14 December 2008

Chen’s Graft Charges Stun Democratic Taiwan

“This is a case of how power corrupts a man,” said political commentator Yang Hsien-hong. “Chen used his power to amass wealth, and hoped to buy a political comeback with the wealth he amassed.”

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Chen’s Graft Charges Stun Democratic Taiwan

By ANNIE HUANG, AP
14 December 2008

TAIPEI, Taiwan – Businesspeople rushed to deliver expensive jewellery and cardboard boxes stuffed with cash to the tree-canopied mansion of Taiwan’s top leader to secure valuable political favours.

Topflight chefs prepared exotic dishes to tempt the palate – and win the allegiance – of his wheelchair-bound wife.

Those are some of the allegations emerging from a month’s long corruption probe into the activities of former Taiwanese President Chen Shui-bian. While the probe is still continuing, it reached a climax of sorts Friday when prosecutors indicted the 57-year-old Chen on charges of embezzlement and laundering ill-gotten bribes.

Chen’s wife, together with 13 other family members and close associates, were also indicted in the case.

The depth of the charges against Chen stunned ordinary Taiwanese, who believed their rapidly evolving democracy had finally put an end to decades of endemic political corruption.

The 100-page indictment catalogued a litany of alleged offenses and shed new light on Chen’s apparent taste for the high life. The son of a poor farmer from southern Taiwan, he was first elected president in 2000, riding to victory on the coattails of his clean-cut image and insistent pledges to clean up Taiwan’s politics.

Appearing in court late Friday, Chen reaffirmed his innocence, claiming the $21 million his wife wired to their son’s Swiss bank accounts came from leftover campaign donations. Taiwanese law permits such donations to be kept by political candidates.

But that account failed to convince prosecutors, who accused Chen of “showing no remorse after committing severe crimes.” Wife Wu Shu-Chen, they said, had “blatantly interfered in politics and corrupted government practice.”

Prosecutors say Chen and his wife together embezzled 104 million New Taiwan dollars ($3.12 million) from a special presidential fund, and received bribes of $11.73 million in connection with a government land procurement deal and a separate construction project.

Prosecutor Lin Che-hui said that a particularly damning piece of evidence was the presence of NT$740 million ($22.2 million) in cash stashed in a Taipei bank safety vault held by the Chens.

“No one would keep such a huge amount of cash if it was obtained legally,” Lin told reporters Friday. “No one would use such complex, illegal means to (launder money) and cover up the identities of the owners.”

After filing their indictment, Lin and his colleagues revealed they will pursue further charges against the former first couple based on a series of allegations submitted by former allies and business associates of the Chens.

After being questioned by prosecutors last month, at least two Taiwanese financial executives admitted they delivered cash to Chen’s residence or deposited money into his family’s overseas accounts.

Through her lawyer, Tu Li-ping, a director of Yuanta Securities, told reporters that she hand delivered NT$200 million ($6 million) in cash to Wu at the presidential residence in 2006 on behalf of executives of an affiliated bank. She said the money was an incentive for Wu not to interfere with a merger the bank was pursuing.

Taiwanese TV stations also reported that several leading businesspeople used expensive gifts and exotic food items to win favours from the former first lady.

Celebrated chef Yuan Wei-hung told the stations that he prepared special dishes, such as braised sea cucumbers and turtle soup, for home delivery by business executives to Wu.

Following the indictment, local media repeatedly reran Chen’s earlier assertions that he cared little about money and was only concerned about the public interest.

But analysts say the prosecutors’ evidence appears to indicate otherwise.

“This is a case of how power corrupts a man,” said political commentator Yang Hsien-hong. “Chen used his power to amass wealth, and hoped to buy a political comeback with the wealth he amassed.”