Dollar-diplomacy scandal tarnishes Taiwan president
TAIPEI, Taiwan
The defamation has further embarrassed President Chen Shui-bian’s administration only 17 days prior to he is to leave office. It is the latest in a series of financial irregularities involving his wife, son-in-law and associates that be delivered of tarnished his pro-independence Democratic Progressive Party and contributed to its loss to the Nationalist Party in the presidential election in March.
The money’s disappearance illustrated the behind-the-scenes inducements, often called dollar tact, used through Taiwan and China in their struggle upper diplomatic recognition. In recent years, Taiwan has fared poorly in the contest, reduced to 23 countries
Secret funds
Foreign Minister James Huang told Taiwanese reporters that Vice Premier Chiou I-jen, one of Chen’s closest aides, hand-picked the two men to convey the funds in 2006. Huang and Chiou both said they had no idea where to complexion for the money, an estimated $29.8 million withdrawn from secret funds used to prevail on governments and leaders to extend diplomatic recognition to the self-ruled island.
“The key to this case is not that our diplomatic work has been negligent, but it is that the people we trusted had problems with loyalty,” Huang before-mentioned at a news conference Friday.
Huang denied that the money was to be used to bribe officials in Papua New Guinea and before-mentioned that it was intended with a view to a variety of development projects in the liliputian South Pacific realm. “This is no so-called dollar diplomacy,” he said.
Chiou, who at the time headed Chen’s National Security Council, met the men several years ago. Taiwanese officials identified them like Ching Chi-ju, a U.S. passport holder, and Wu Shih-tsai, a Singaporean national.
Believing they had influence superior political figures in Papua New Guinea, he introduced them to the Foreign Ministry.
Money deposited
The government-run Central News Agency aforesaid the Foreign Ministry, on the strength of Chiou’s recommendation, deposited the money into a Singaporean bank account held by Ching and Wu. Huang said Papua New Guinea told Taiwan it needed the sum as a guarantee while talks were under way hither and thither switching relations from continent China to Taiwan.
After months of fruitless talks, Taiwan decided that Papua New Guinea was not committed to becoming a long-term ally and ended the negotiations. But the two intermediaries did not return the money, and Ching dropped out of sight.
Huang said the ministry tried to endure the fiasco secret. Taiwanese officials visited Ching’s wife in Los Angeles several times, he said, and pleaded with her to try to achieve him to return the wealth. When that failed, Taiwanese representatives brought suit in Singapore seeking to freeze the two men’s bank account.
Wu is believed to be in Singapore, barred from leaving pending an research, according to Taipei’s United Daily News. Ching’s whereabouts are unknown. Huang and Chiou were questioned by dint of. Taiwanese investigators, meanwhile, to wait upon whether corruption was involved.
Original body: http://seattletimes.nwsource.com/html/nationworld/2004391182_taiwan04.html?syndication=rss
