Chen admitted having done "something not permitted by law" and said he would cooperate with prosecutors, as well as the Democratic Progressive Party's integrity committee, which began looking into the case the same day. The former president and his wife resigned from the party Aug. 15.
"I am not greedy for money. I made a serious mistake. I do not expect the public to forgive me, but I will take responsibility for what I did," Chen stated. He urged supporters "not to abandon the DPP nor turn their backs on the party's efforts [in pursuing a democracy] because of his personal mistakes."
Investigators from the Supreme Prosecutors Office named Chen, Wu, Chen Chih-chung (Chen's son), Huang Jui-ching (Chen's daughter-in-law) and Wu Ching-mao (Chen's brother-in-law) as the main suspects in their money-laundering probe Aug. 18. Chen's residence and office in Taipei City, along with the home of Wu Ching-mao in Tainan City, were searched by investigators, who also questioned the former presidential couple.
According to prosecutors, Chen and Wu had been cooperative during questioning, with both explaining that the funds wired overseas--totaling US$21 million--had nothing to do with any scandals. During questioning, prosecutors said Wu revealed that the money came from her family, Chen's past income as a lawyer, and his political donations and proceeds of their investment portfolio.
Chen admitted that he did not clearly account for his campaign contributions from previous mayoral and presidential elections. An accumulation of around US$21 million had been transferred abroad during these years, he said, adding his wife had done so without his knowledge. The former president denied allegations of embezzling money from the government or engaging in money laundering.
Chen's admission came after Taiwan's Next Magazine reported Aug. 14 that Wu had remitted millions of dollars overseas through various bank accounts belonging to members of her family, and Kuomintang Legislator Hung Hsiu-chu made public the same day copies of documents showing Chen's son and daughter-in-law transferred US$31 million to their Swiss bank accounts in 2007.
The Ministry of Foreign Affairs confirmed Swiss federal authorities requested assistance from Taiwan in June over the case. According to the Supreme Prosecutors Office, Swiss prosecutors had temporarily frozen Chen Chih-chung's and Huang's accounts as part of the investigation.
Meanwhile, DPP Chairwoman Tsai Ing-wen apologized to the public on behalf of the party for the "instability" the case had caused.
Admitting that allegations against the former first family had impacted on the DPP's standing, Tsai said the party supports the legal process and expects the media to behave in a fair and controlled manner so as to give society an opportunity to further learn about the working.
Write to June Tsai at june@mail.gio.gov.tw