Prosecutors launch graft probe against Chen

TAIPEI - PROSECUTORS in Taiwan say they launched a corruption probe against former president Chen Shui-bian yesterday, the day he lost his immunity upon leaving office.

The announcement came shortly after President Ma Ying-jeou took the oath of office - meaning Mr Chen was no longer safe from judicial action.

'We have formally started the investigation of the special expenses case concerning former president Chen,' said Mr Chu Chao-liang, a spokesman for a special investigation unit of the Supreme Prosecutors Office.

But he also said: 'Our office this afternoon sent a letter to the presidential office, the Foreign Ministry, the immigration agency, the national police agency and the coast guard asking them, with effect from today, to notify us immediately if they process or know about Chen's departure.'

The special expenses case involves possible embezzlement of NT$14.8 million (S$661,000) in funds designated for official use by the president. In 2006, Mr Chen was named by prosecutors as a suspect.

His wife, Madam Wu Shu-chen, has already been on trial on corruption and document forgery charges since December 2006 in the same case, but Mr Chen - a 57-year-old former human rights lawyer - had escaped prosecution due to his presidential immunity.

Prosecutors had said at that time that they had enough evidence to charge Mr Chen, who declared publicly that he would resign if his wife was convicted. Madam Wu has not responded to summonses since her first appearance in court, claiming ill health.

Mr Chen made no comment about the probe during a visit yesterday to a Taipei recycling factory run by a Buddhist charity.

'I will do volunteer work whenever I have time,' he said simply.

Mr Chen and his family have been mired in corruption scandals since early 2006, when his son-in-law Chao Chien-ming was arrested for alleged insider trading on the stock market.

Chao was later sentenced to seven years in prison, and is appealing against the ruling.

Hundreds of thousands of people rallied on the streets of Taipei that year to demand that Mr Chen step down over the scandals, but he survived the demonstrations.

Several members of his pro-independence Democratic Progressive Party are also being tried or investigated for graft, including former vice-president Annette Lu, ex-premier Yu Shyi-kun and former foreign minister Mark Chen.

In 2000, Mr Chen became the island's youngest president, ending the Kuomintang's 51-year grip on power. He was re-elected by a narrow margin in 2004 to a second and final four-year term.

AGENCE FRANCE-PRESSE, REUTERS, BLOOMBERG