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Taiwan V-P Lu denies graft charges
Tue, Nov 20, 2007 The Straits Times
TAIPEI - TAIWAN Vice-President Annette Lu yesterday denied charges that she misused a special allowance and hit out at what she called an inconsistent justice system. Ms Lu, who has prided herself on her clean fiscal record, is the highest-ranking Taiwanese official to stand trial on corruption charges. She 'categorically denied' the charges at the first hearing in Taipei District Court, the Central News Agency reported. Before a panel of three judges, the Harvard-educated Ms Lu said she had no knowledge of how her aides claimed the reimbursements, and insisted all the funds she received were used for official functions.

She faces one count of graft and one of fabricating receipts.

Before entering court, Ms Lu read a strongly worded statement to reporters, complaining that Taiwan's justice system had handled special allowance cases inconsistently. 'The standards of justice are not the same,' she said as a crowd of supporters demonstrated outside.

She urged the judiciary not to press cases which could result in 'purges, power struggles'.

'I am speaking not for myself but the 6,500 officials' who might be implicated, she said, referring to the number of government employees with access to special government funds.

Ms Lu said Taiwanese government auditors have for decades recognised special discretionary funds as subsidies for local and central government executives, allowing 'loose standards' to be applied to the reimbursement payments.

'We must not allow the faults from an incomplete system of the old era to bring new disasters,' she said.

Thousands of Taiwan officials use discretionary funds similar to the Vice-President's allowance. Some funds require only limited filing of receipts. Questionable use of the allowances has set off a rash of indictments over the past year.

The rules regarding special funds are vague, analysts say, allowing some to argue that they are a kind of 'subsidy' for officials, who are not required to present formal receipts.

Government officials are allocated a set amount for their special expense account according to rank.

Ms Lu, Vice-President since 2000, is a 63-year-old former political prisoner and human rights advocate who briefly stood for the ruling Democratic Progressive Party nomination in the 2008 presidential race, but withdrew early in the process.

Corruption charges carry a minimum of seven years in prison and forgery is punishable by up to seven years in jail.

REUTERS, AGENCE FRANCE-PRESSE, ASSOCIATED PRESS