Chen Shui-bian, former President of the Republic of China, stepped down on May 20, 2008, the same day that Ma Ying-jeou took office as the new President of the Republic of China.Ralph Jennings, "Taiwan new leader takes office on China pledges" , Reuters (International Herald Tribune), May 20, 2008. About an hour after he left the Presidential Office Building, as a former President of the Republic of China and no longer enjoying presidential immunity, he was arrested and restricted from leaving the nation by Taiwanese prosecutors due to allegations of corruption and abuse of authority. Chen was accused of fraud in a case involving the handling of a special presidential fund used to pursue Taiwan's foreign diplomacy. However, the Special Investigation Division dropped money-laundering charges because of a lack of evidence.
President Ma Ying-jeou moved to declassify documents that would aid in the investigation of the former president's use of special expenses. President Ma was then sued by Chen's lawyers on August 6, 2008, who called Ma's declassification of case-aiding documents "politically motivated." The documents which were sought were classified earlier by Chen. The documents are mostly receipts and records of use of special expenses.
Alleged money laundering
On August 14, 2008, shortly after a press conference held by rival party Kuomintang (KMT) legislators announcing the existence of a request for money laundering investigation assistance letter from the Swiss government, the former president called an evening press conference and admitted that his past election campaigns had misstated election finance expenses, and had leftover monies in campaign coffers forwarded to overseas accounts. Chen stated during the conference, "My conscience has told me that I cannot continue to lie to myself or to others, so I will choose to be bluntly honest: I have, in the past, committed deeds that are against the rule of law, and I am willing, for all campaign finance dishonesty from my four elections for mayor and for president, to apologize to the people".
Chen claimed that the money was wired overseas by his wife and without his knowing. There is also an investigation launched by Swiss authorities over a Swiss bank account bearing Chen's daughter-in-law's name: roughly US$31 million were wired to the account from Taiwan and was then forwarded again to an account in the Cayman Islands. Swiss and Taiwan authorities are cooperating in investigating whether or not there are instances of money laundering committed by members of the former first family. It is unknown whether or not the wiring of the Swiss accounts and the wiring of campaign money overseas by Mrs. Chen are related. Chen and his wife are currently restricted from leaving Taiwan.
Chen's August 14 admission was a reversal of his position just one day earlier, when he vehemently denied a Next Magazine report of the same story.
The following day, August 15, Chen announced that both he and his wife will leave the Democratic Progressive Party for good from the fallout of the previous day's admission.
Reaction to Chen's admission was negative. Former DPP chairman Shih Ming-teh (1994–96), claimed to have been eating while Chen called his press conference, and threw his chopsticks down in anger upon hearing his confession. Chen's vice-president for throughout his eight years, Annette Lu, has said, "If I had not heard it with my own ears, I would not have believed it; I am still in disbelief. Any person who genuinely loves Taiwan will not wire money of contributors and of the people overseas. The former first family have affronted Taiwan and the Taiwanese people"
Chen Shui-bian and his wife Wu Shu-jen, on August 15, resigned from the Democratic Progressive Party and apologized, saying "Today I have to say sorry to all of the DPP members and supporters. I let everyone down, caused you humiliation and failed to meet your expectations. My acts have caused irreparable damage to the party. I love the DPP deeply and am proud of being a DPP member. To express my deepest regrets to all DPP members and supporters, I announce my withdrawal from the DPP immediately. My wife Wu Shu-jen is also withdrawing from the party." DPP Chairwoman Tsai Ing-wen also apologized to the public on behalf of the party: "In regard to Chen and his wife's decision to withdraw from the party and his desire to shoulder responsibility for his actions as well as to undergo an investigation by the party's anti-corruption committee, we respect his decision and accept it." Taiwan prosecutors on August 16 interrogated Wu Shu-jen and asked her to explain overseas money transactions. A Kuomintang (KMT) party member alleged that Chen's wife bought jewelry to launder money. Hung Hsiu-chu, a member of the ruling KMT, charged that Chen's family opened four bank accounts in Switzerland, with total deposits of US$32 million, which Chen remitted through his daughter-in-law, Huang Jui-ching.
On August 17, Supreme Court Prosecutor's Office announced Taiwanese investigators took away boxes of documents, after search of Chen's home in Taipei City, his office, and in Tainan, at the home of his wife's brother Wu Ching-mao. Chen was prohibited by prosecutors from leaving Taiwan. Chen has (US?/NT?)$21 million at overseas banks held in the name of family members. Shih Ming-teh, a former leader of Chen's Democratic Progressive Party accused Chen of laundering at least (US?/NT?)$85 million from an entrepreneur bidding for bank ownership in 2005. Coast Guard Administration spokesman Hsieh Ching-chin said: "We received the order from the special investigation unit around 9:20 p.m. last night saying former president Chen was barred from leaving the country." Chen's probe concerns NT$14.8 million (US$480,500) in special expenses from the government, while he was president, and his wife is on trial for corruption and document forgery. Prosecutors found at least NT$1.5 million had been spent on diamond rings and other luxury items for his wife. newsinfo.inquirer.net, Ex-president barred from leaving Taiwan Upon his return to Taiwan, Chen's son claimed that he was a mere "figurehead," and was not directly involved in the transfer of money.
Chen commented upon the public's suspicions that he had engaged in money laundering by colorfully stating: "Money is dry, it cannot be laundered; money is clean, not dirty, it does not need to be laundered."
Taiwan's representative to Switzerland George Liu had offered a written resignation from his position in July 2008 that was approved in August 2008. After Liu's resignation took effect, his actions regarding the letter sent by the Federal Department of Justice and Police were found to have shown a "lack of political judgement" and he was duly investigated for dereliction of duty. The Control Yuan passed a resolution to impeach Liu for dereliction of duty on September 30, 2008.
On October 31, 2008, Chiou I-jen was arrested and detained incommunicado, by Supreme Prosecutors Office's Special Investigation Division Prosecutors, for alleged embezzlement of about US$500,000 from diplomatic funds, in 2004, as secretary-general of the National Security Council. Chen Shui-bian called his arrest a "political persecution" by the Beijing-friendly Kuomintang government amid and after another senior DPP member -- Chiayi County magistrate Chen Ming-wen's detention on corruption charges: "The government abused the laws and its powers to persecute and humiliate us but the people and the history will return justice to us and prove our innocence. The government of President Ma Ying-jeou is settling old scores in the name of a campaign against corruption. The Special Investigation Division (SID), in order to indict and convict me, has been taking high-profile actions, locking up members of the former government team one by one." Chiou I-jen is the 8th suspect in spin-offs of Chen Shui-bian's money laundering probes under the jurisdiction of the Taipei District Court.
Arrest and detention
Chen was escorted by security staff, on November 11, 2008, into the Taipei prosecutor's office for questioning. He was served a subpoena for the 5th time by the Special Investigation Division (SID) on November 10, but he opted to exercise his right to remain silent in the 6-month SID money-laundering probe, and the case terminates on November 24. Chen alleged that "The KMT and the Chinese Communist Party see me as their number one prisoner as I am the biggest stone blocking their way to reunification. Chinese envoy Chen Yunlin had a bad time in Taiwan... so (Taiwan's President) Ma Ying-jeou wants to put me in jail as a sacrifice to appease China. I am very honoured and proud to play such a role." He then commented, "the voice of Taiwanese people can never be suppressed by heavy-handed riot police presence, nor could it be clamped down by razor wires; Taiwan independence; my heart will be with all 23 million people... I will spend the rest of my limited life to fight for justice with the public; the prosecutors would file a request to detain me and the Taipei District Court would grant the request for detention. Long live Taiwanese democracy. Long live Taiwanese independence." On 12 November 2008, Taiwan Affairs Office of the PRC in a routine press conference denied the allegation describing it as a "rumour". It further stated it "believes that people can see through the purpose behind this clumsy tactic of rumour making".
After 6 hours, Chen left the Supreme Court prosecutor's office in handcuffs, arrested and detained. He held his cuffed hands up for journalists and shouted "Political persecution! Long live Taiwan!" Prosecutors, led by investigation spokesman Chen Yun-nan, filed a detention request with the Taipei District Court. He said he would enter "Taiwan's Bastille (Tucheng Detention Center)," but "it will only lock up my body, not my heart." The charges carry each a minimum penalty of 5 years imprisonment.Former Taiwanese president led away in handcuffs AP News, November 11, 2008
Chen, 57, arrived at the Taipei District Court, after the prosecutor's marathon interrogation (from 9:45 a.m. to 4:30 p.m. on November 11). The 11-hour trial started at 8:00 p.m. on November 11. The Court suspended the proceedings, after Chen's lawyer Lai Ching-te claimed a policeman hit him. Chen was rushed to National Taiwan University Hospital, and after 2 hours, the doctors confirmed a slight right arm muscle injury due to strain, possibly caused by a police officer's unintentional pulling of his arm while being detained.
Following a night of deliberation, the Taipei District Court formally arrested and jailed Chen, at 7:06 a.m. on November 12, under an order that does not constitute an indictment. Chen can be held for 4 months before being formally charged. Huang Chun-min, Taipei district court spokesman quoted the ruling: "The court, after questioning the suspect, believes the suspected crimes to be severe. And there are enough facts to believe there was buried evidence, fabrication, altered evidence and conspiracy among suspects or witnesses." He was sent to the Taipei Detention Center, 8:00 a.m., where, as a dissident leader 21 years ago, he served 8 months for defaming a Nationalist Party official.Taiwan's Chen ordered detained AP news, November 11, 2008 Chen's attorneys' filed waiver of his right to appeal the order. Chen, banned from communicating with anybody outside the Taipei Detention Center, can be in custody for a maximum of 2 months. He joins nine others detained on alleged laundering (US?/NT?)$30 million, which include Ma Yong-cheng, Chiou I-jen, the ex-vice premier, Yeh Sheng-mao, and Chen's brother-in-law, Wu Ching-mao, inter alia. Chen was assigned prisoner number 2630.
Hunger strike and privileges