Chang Wen-cheng, spokesperson for the Taiwan High Prosecutors' Office, announced Nov. 3 that prosecutors had enough evidence to indict Chen on corruption charges in connection with his handling of the "state affairs fund." The announcement came after a month-long probe of how the Office of the President had been using the fund, which was set up as a way to support Taiwan's secret diplomatic efforts abroad.
First lady Wu Shu-jen, Chen's accountant and two former presidential aides were charged with embezzlement, forgery and perjury, according to the indictment. However, under the ROC Constitution, no sitting president can be indicted on criminal charges except in cases of treason or creating internal disorder. Chang said that, between 2002 and 2006, Wu took possession of US$450,000 in fund expenses through borrowed receipts.
At the outset of his televised address, Chen offered his profound apologies to the people of Taiwan, his colleagues and long-term supporters of the Democratic Progressive Party for the damage that the investigation and indictments had caused to the nation's international image, as well as for the disturbance they had caused to society in general. He apologized for the turmoil the news was causing in Taiwan's political sphere and for the great injury it had wrought on the DPP.
Chen expressed his respect for prosecutor Eric Chen and the other prosecutorial and investigative personnel who were involved in the investigation. He thanked them for their hard work on the case and their independence of spirit in spite of immense pressure over the past few months.
"Although some of the indictment's contents are disputable and even unacceptable, such an outcome of the investigation can nevertheless be regarded as a victory for Taiwan's judiciary and a democratic achievement in which we can take pride," said the besieged president.
Following this preamble, Chen outlined several reasons why he had no motive to embezzle the money. First, he said, when he became president in 2000, he cut his own monthly salary in half from approximately US$25,400 to US$12,700. He pointed out that, after six years in office, this lost income adds up to approximately US$1 million. "Use common sense," he urged. "Would I really have the need to use 712 receipts--including one for US$3.90--to embezzle US$450,000?"
Second, Chen claimed that the president also had access to secret national security accounts known as the Fong Tien Special Project for use at his personal discretion. The fund was set up for the ROC president in 1994, and Chen's predecessor, former President Lee Teng-hui, transferred the accounts to him in 2000. The annual disposable funds associated with these accounts was roughly US$3.3 million from 1994 to 2000, Chen pointed out.
"However, I gave official written instructions that these funds be returned to the national treasury in their entirety, and this was done in February 2002," Chen said. "Had I wanted to embezzle, the Fong Tien Special Project would have been an opportunity, as the fund in which the money was placed yielded interest. There was so much money up for grabs each year, nothing needed to pass through legislative review, and the accounts were not required to undergo examination by the Ministry of Audit."
Chen lamented the difficulties faced by any Taiwanese president asked to safeguard national security and fight against China's diplomatic offensive if the nation as a whole is not united in understanding that there is a need for secrecy in certain operations. He said the prosecutor had broken a promise not to reveal the names of people and organizations that received monies from the fund to bankroll certain secret missions on behalf of Taiwan's ongoing cold war against China. He said he would not reveal the names of the agents involved in the secret missions.
Huang Yu-cheng, spokesperson for the Kuomintang, said right after Chen's address that the KMT could not accept the president's explanation for his lack of motive, while Yu Shyi-kun, chairman of the DPP, also held a press conference to announce that the party would be supporting Chen.