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Taiwanese President and Wife Are Accused of Corruption
BEIJING, Nov. 3 — Taiwanese prosecutors said Friday that they had enough evidence to bring corruption charges against President Chen Shui-bian, a development that is likely to increase pressure on the independence-leaning Taiwanese leader to resign.
Also on Friday, prosecutors indicted Mr. Chen’s wife and two former aides on charges of misusing money from a secret diplomatic fund under Mr. Chen’s control. They said Mr. Chen might face formal charges when he no longer enjoys presidential immunity.
The cascade of charges seems likely to deepen the political turmoil that has gripped Taiwan for months and bolster calls for Mr. Chen to step down before the end of his second term in 2008.
Mr. Chen made no immediate comment on Friday’s indictments, but he has steadfastly maintained his innocence.
He consulted with leaders of the ruling Democratic Progressive Party on Friday evening. So far he has managed to rally the party faithful to stand by him.
David Lee, a spokesman for the presidential office, said after the charges were announced that Vice President Annette Lu had been recalled to Taipei from a trip to the outlying island of Penghu. Ms. Lu would replace Mr. Chen as president if he resigned.
Mr. Chen, who twice won elections advocating steps toward formal independence from mainland China, has fought off two legislative efforts to remove him from office. He has characterized the corruption investigation as a politically motivated attack on his policies.
But a relatively weak economy, a stalemate in relations with Beijing and the graft scandals have pushed his popularity ratings well below 20 percent in most polls and hobbled his efforts to pass legislation.
To help revive enthusiasm among his core supporters, many of whom favor legalizing Taiwan’s de facto independence, Mr. Chen vowed earlier this week to write a new constitution that would reinforce his vision of Taiwan’s separate identity.
Any such move would almost certainly provoke a sharp reaction from China, which refuses to rule out military action to prevent steps toward formal independence. But Chinese leaders have taken a low-key approach to Taiwan recently, as Mr. Chen struggles to remain in office and battles a legislature controlled by the opposition Nationalist Party.
The Public Prosecutor’s Office of Taiwan’s High Court formally indicted Mr. Chen’s wife, Wu Shu-chen, on charges of issuing fake receipts to extract about $450,000 from a fund that the president controls to support Taiwan’s diplomatic initiatives overseas.
Ms. Wu is accused of using state funds for a variety of personal expenditures, including diamond rings and other luxury items for her children and grandchildren.
Two former aides, Ma Yung-cheng and Lin Teh-shun, and the president’s accountant, Chen Chen-hui, were also indicted on related corruption and perjury charges.
Chang Wen-cheng, the spokesman for the High Court’s prosecution team who announced the indictment in a press conference Friday afternoon, said that President Chen was suspected of graft and forgery, but that he could not be indicted while in office. Mr. Chang suggested it was likely that charges would be pressed when Mr. Chen left the presidency.
Ma Ying-jeou, the Nationalist Party leader and mayor of Taipei who is likely to run for president in 2008, called on Mr. Chen to resign immediately.
“He has lost the people’s trust and respect, and he is burdened with scandals,” Mr. Ma said. “He can no longer lead the people nor effectively represent the country.”
Lawmakers from Mr. Chen’s party have stood by him despite large-scale street protests and opposition attempts to unseat him. Some ruling party members have argued that they may have a better chance of retaining the presidency in the 2008 elections if Mr. Chen steps aside. But Mr. Chen is still viewed as unlikely to leave office voluntarily.
The charges are the most recent in a series of investigations into the affairs of Mr. Chen, his family and his inner circle. This summer, prosecutors charged the president’s son-in-law, Chao Chien-ming, with insider trading. Mr. Chao has denied wrongdoing.
Prosecutors also investigated accusations that Ms. Wu might have obtained large numbers of gift certificates from a department store chain that was seeking government permission for a change of ownership. They subsequently announced that they did not have enough evidence to indict her.
Mr. Chang, the prosecution spokesman, said investigators had met with President Chen twice to discuss the handling of a diplomatic fund that the island’s leadership can use to advance Taiwan’s interests overseas. They pressed him to account for expenditures from the fund, but rejected the documentation he had submitted as forged.
“Chen presented documents about six cases in which secret diplomatic funds were used, but the investigation by prosecutors showed that only the documents for two cases were accurate,” Mr. Chang said.
The investigation began in July, after the Ministry of Audit said irregularities had been found in the presidential office’s accounting of its expenditures.
President's Wife Indicted for Corruption
By REUTERS
It was the latest blow in a scandal that has led to mass protests and calls for the president's removal.
A statement from the prosecutor's office said the high court would charge First Lady Wu Shu-chen with corruption and faking documents in a case involving the misuse of more than T$14.8 million ($448,000).
The prosecutor's office also mentioned allegations of perjury, but it was unclear whether charges on that count were filed against Wu.
It said Chen himself might also be guilty of wrongdoing in the case, but that he was immune from prosecution until the end of his tenure, which is due to run until 2008.
``In the end it was determined through receipts of purchases by other people, that Wu Shu-chen between July 2002 and March 2006 embezzled over T$14.8 million of non-secret state funds,'' Chang Wen-cheng, spokesman for the high court prosecutor's office, told a news conference.
``The High Court prosecutor has determined that President Chen is involved with the crimes of corruption and faking of documents but this part of the case is subject to guarantees provided under ... the constitution and we must wait until the president is recalled or finishes his term before we can pursue further investigation,'' he said.
``RESIGN'' CALLS
The main opposition Nationalist Party (KMT) called on Chen to step down, joining protesters who have been demanding his resignation in a series of major street demonstrations attracting hundreds of thousands of people.
``President Chen has lost the respect and trust of the people,'' said KMT chairman Ma Ying-jeou. ``We urge President Chen Shui-bian to step down as soon as possible ... We urge the ruling party to show courage and strength in getting President Chen to step down immediately.''
A spokesman at the president's office had no immediate comment.
Wu and Chen have denied any wrongdoing. Chen's Democratic Progressive Party called a meeting for later in the evening, but had no immediate comment.
The president was unlikely to step down, at least for now, said Andrew Yang, secretary-general of the Chinese Council of Advanced Policy Studies.
``But it really depends how much pressure he faces from his opponents and from his own party,'' Yang said. ``This has further damaged his leadership and credibility and will create more resentment from those against him and add more challenges for the DPP.''
The investigations against Chen and Wu, and an unrelated investigation and charges against their son-in-law, Chao Chien-ming, have weighed on his administration this year and dragged the president's popularity to new lows.
In a bid to placate his critics, Chen ceded some powers in June to Premier Su Tseng-chang. The transfer gave Su ``full power to decide and be completely responsible for all cabinet policies in the future,'' Chen said at the time.
Traders took the long-awaited news, which came after the market closed, in their stride, saying they expected only a limited short-term impact.
