Friday 31 October 2008

Taiwan Former Vice-PM Detained

A former Taiwanese vice-premier and senior member of the opposition Democratic Progressive Party (DPP) has been arrested on graft charges, in the latest scandal to hit the party, officials said on Friday.

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Guanyu said...

Taiwan Former vice-PM detained

AFP
31 October 2008

Taipei - A former Taiwanese vice-premier and senior member of the opposition Democratic Progressive Party (DPP) has been arrested on graft charges, in the latest scandal to hit the party, officials said on Friday.

Chiou I-jen is suspected of embezzling US$500,000 (S$740,000) in diplomatic funds while he was secretary-general of the National Security Council in 2004, said a spokesman for the Taipei district court.

Chiou received the money from the foreign ministry in traveller’s cheques, which were found to be cashed in several overseas casinos, the spokesman said.

Prosecutors uncovered the alleged embezzlement during a probe into money laundering claims against former president Chen Shui-bian and his family - a case about which Chiou was also questioned as Chen’s former right hand man.

Chiou’s detention came only days after another senior DPP member - Chiayi County magistrate Chen Ming-wen - was taken into custody on corruption charges.

Chiou resigned in May, days before Chen Shui-bian left office, to take responsibility for another diplomatic scandal in which two businessmen allegedly pocketed US$30 million that were intended to help Taiwan forge ties with Papua New Guinea.

A string of corruption scandals implicating ex-president Chen, his family and senior DPP members has tarnished the party’s image and likely played a part in the party’s defeat in March’s presidential vote, analysts say.

The former leader has admitted his wife wired US$20 million abroad from his past campaign funds but has denied laundering money.

He is already being investigated for allegedly embezzling NT$14.8 million (S$665,000) in special expenses during his presidential term of office. His wife is on trial in the same case.