Taiwan nabs an ex-president
By Cindy Sui

TAIPEI - While the media focus on the high-profile detention of Taiwan's former president Chen Shui-bian over suspicions of corruption, his alleged wrongdoings show that the island's 12-year-old democracy still has some way to go.

Chen is the first former or incumbent Taiwanese president to be detained. He is the island’s second democratically elected leader.

On Tuesday, Chen was led away in handcuffs after hours of questioning by prosecutors on alleged embezzlement of public funds and money laundering involving him and his family. On 

 
Wednesday morning, the Taipei District Court approved the prosecutors' request to detain him although he has not been formally charged.

The detention comes six months after Chen, 58, ended his two four-year terms in office in May. He was protected by presidential immunity while in office.

Prosecutors have alleged the ex-president and his wife embezzled NT$14.8 million (US$480,500) from a special presidential fund to be used for state affairs while he was in office. Admitting to using false receipts to claim money from the special fund, Chen, however, insisted the money was spent for "secret diplomatic missions" - not for personal expenses. Before he left office, his wife had already been indicted on embezzlement charges in the same case.

Investigators also suspect the former first family of money laundering - transferring millions of US dollars to overseas bank accounts. His wife, son, daughter-in-law and brother-in-law have been named as defendants in the money laundering case. Chen has admitted his wife wired US$20 million abroad from past campaign donations, but said she did so without his knowledge.

He has squarely denied any wrongdoing.

If proven true, the allegations show a system that allows government officials to siphon off public funds by using false receipts to claim reimbursements. These funds are meant for work related to their duties while in office.

Chen is not the first to be accused of misusing special discretionary funds set aside for political office holders. Current President Ma Ying-jeou was charged with embezzlement, but acquitted before being elected in March. He was accused of transferring money from the mayoral special fund into his private bank account while he was mayor of Taipei.

A number of officials from both the ruling Kuomintang (KMT) party and main opposition Democratic Progressive Party (DPP) have also been accused of misusing such funds. Apparently, it has been a common practice, as officials claimed during the probes.

While fighting corruption is a worthy cause in Taiwan, investigations here often stem from one political party's ability to maneuver against another's. Many ordinary people see through what is going on, after years of watching bitter political fighting unfold on the island, and some have grown cynical.

"It's politics. Taiwan's judiciary is a political tool," said Tseng You-yi, a Taipei taxi driver, commenting after Chen's detention.

For his part, Chen has accused President Ma and the KMT of placating Beijing by pursuing his detention, especially after the large-scale protests that occurred during the historic visit by China's top negotiator to Taiwan last week. Chen called the case against him "political persecution".

Many ordinary people believe there are corrupt members in both parties, and that the KMT had also embezzled a lot of public funds during its years in power.

Naming a former leader of the KMT who is widely believed by the public to have been corrupt during his term in office, Tseng asked: "Why not arrest him too?"

The island of 23 million people held its first direct presidential election only in 1996. Prior to that, for nearly half a century, it was ruled by the KMT as a one-party state.

In the past few years, the island has been largely divided by partisan bickering, which notoriously at times erupted into fistfights on the floor of the legislature.

The two main parties - the KMT and DPP - have a lot of bad blood between them. DPP founders and members, who were pro-democracy activists and lawyers, were once persecuted by the KMT for seeking democratic reforms.

Dirt is generally dug up when one party goes after the other. Impartial government watchdogs against corruption or other wrongdoings. Many of the media are not neutral, or even academics are not always easy to find..

The system also affords office holders a lot of power, without adequate scrutiny. During the probe into the alleged money laundering by the former first family, Yeh Sheng-mao, the former director general of the Bureau of Investigation under Chen, admitted to warning the former president that an international organization that helps fight money laundering was investigating his family for suspected money laundering. Instead of informing prosecutors, Yeh allegedly gave the briefings of the Egmont Group to Chen, and is accused of covering up for Chen.

The detention of Chen without charges also shows problems in the existing system, critics said.

While Chen has not been formally charged, Taiwan's laws allow prosecutors to detain him without charges for two months with the court’s permission. The detention time can be extended by another two months by the court, and if new allegations surface during the probe, prosecutors can seek court approval for further detention, according to Chen Yun-nan, director of the Special Investigation Division handling Chen’s case.

Prosecutors, in seeking his detention, argued that the nature of the alleged crimes was serious and that Chen might tamper with evidence or collude with others if he remains free.

The arrest of Chen also showed the continuing divisiveness of Taiwan's politics and political parties, analysts said. They predict more political battles as a result of Chen's detention.

"The recent events will lead to infighting inside the DPP [the party Chen once led] and between the DPP and KMT," said Shane Lee, a political science professor at Chang Jung Christian University in the southern Taiwanese city of Tainan.

Since the KMT returned to power by winning an overwhelming majority of the seats in the legislature during elections in January and by winning the presidency in March, it has launched several investigations into corruption by DPP members.

In recent weeks, police have arrested several opposition party members, including the magistrates of Yunlin and Chiayi counties, on charges of corruption.

"There are so many people who can be prosecuted, why only choose DPP members?" Lee asked.

During the DPP's rule, KMT members were targeted.

Critics said Ma's administration was trying to divert attention from its inability to deal with a slumping economy and from his falling popularity ratings in opinion polls.

But KMT members and supporters said the arrest of Chen showed an advancement in Taiwan's political system.

"Our judicial system has improved and is independent," KMT legislator Luo Su-lei said in a press conference held on Wednesday by lawmakers from the ruling party to express their views about Chen's detention.

Many ordinary people also believe justice should be served, regardless of how high a position the offender holds or held.

"If he's guilty, we need to arrest him and lock him up," said the owner of a scooter repair shop in Taipei who wanted to be identified only by his surname Lin. He voted for Chen in 2000, but is not nostalgic about the ex-president.

"I voted for him in 2000 because the KMT was so corrupt. He was the obvious choice," said Lin, adding that he did not watch the almost 24-hour non-stop TV coverage of Chen's detention. "We don't watch television news. Both parties have made everything such a mess," said Lin. He said he was worried there would be street protests which could hurt his business.

But other than a few dozen protesters who gathered outside the office of the Supreme Prosecutors Office's Special Investigation Division on Tuesday while Chen was questioned there for six hours, few protesters appeared on Wednesday after the court approved his detention.

The opposition DPP, meanwhile, has urged fair treatment of Chen while the investigation is ongoing.

DPP chairperson Tsai Ing-wen and the party have tried to distance themselves from Chen in recent months. Chen's arrest could further hurt the party, which lost significantly in the January and March elections.

"It's trying to weigh what to do," said Lee. "Chen Shui-bian himself has caused a lot of damage to the DPP's reputation."

Late on Tuesday night, Chen was taken to hospital briefly during an interruption in the proceedings for treatment of a minor muscle sprain he suffered while he was being detained.

He will be taken to Tucheng jail in a surburb near Taipei to serve his detention.

"One day history and the people will judge them, too," Chen said on Monday of the KMT and instigators of his arrest, prior to his detention.

Cindy Sui is a freelance journalist based in Taipei.

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