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Taiwanese leader, wife accused of corruption

By ASSOCIATED PRESS
Published November 4, 2006

TAIPEI, Taiwan - President Chen Shui-bian suffered the biggest blow of his administration Friday when prosecutors indicted his wife on corruption charges and said they have enough evidence to charge him, too - an announcement that could end his fragile leadership.

The news sent thousands of antigovernment protesters into the streets of the island's capital, and the main opposition party said it would launch a recall drive if Chen doesn't resign by Monday.

Chang Wen-cheng of the Taiwan High Prosecutors' Office announced that first lady Wu Shu-chen and three aides have been indicted on charges of embezzling money from a secret diplomatic fund under Chen's control. Chang said there was a possibility Chen would be indicted after he leaves office.

Under Taiwanese law, a sitting president cannot be indicted other than on charges of sedition. Chen, who didn't comment on the indictments, has said he would step down if there is evidence of wrongdoing.

Chang said Chen's wife took about $450,000 from the diplomatic fund between 2002 and 2006, and there were no receipts accounting for the money.

Chang said Chen met with prosecutors twice to discuss the handling of the fund but said serious discrepancies had emerged in his testimony.

If Chen quits with two years left in his second term, his vice president, Annette Lu, would likely take power. That could raise tensions with rival China, which reviles Lu.

A civil war split China and Taiwan in 1949, and Beijing insists that Taiwan must eventually unify with it - a notion the pro-independence Lu rejects.

Chen's nemesis, Nationalist Party leader Ma Ying-jeou, demanded that he resign immediately.

Chen's support base also showed signs of crumbling on Friday. Leaders of the president's Democratic Progressive Party insisted that he explain the allegations within three days.

There has long been grumbling inside the president's party that Chen has become too much of a liability and should be dumped before the 2008 election.

[Last modified November 4, 2006, 01:13:30]