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Prosecutors To Indict Broker In Taiwan-PNG Diplomatic Scandal

Friday: August 22, 2008

(Taiwan News Online)

Prosecutors say they preparing to indict one of the two brokers who received $30 million from the government in a failed scheme to convince Papua New Guinea to recognize Taipei, Taiwan News Online reports.

Wu Shih-tsai, who is under arrest in Taiwan, is a Singapore citizen. He is now facing indictment by Taiwan authorities.

Wu and Charles Ching, a U.S. citizen, in 2006 were commissioned by then Foreign Affairs Minister James Huang and then-National Security Council Secretary-General Chiou I-jen to convince PNG to switch its diplomatic allegiance from Beijing to Taipei. They were given the equivalent of $30 million, which was placed in a Singapore bank accounts.

Singapore authorities this week provided Taiwan prosecutors with documentation on eight bank accounts held by Wu and Ching, who has evaded arrest. A spokesman said the accounts held $29.8 million.

Taiwan New Online also reports that investigators will look into whether there is a connection between Ching and former President Chen Shui-bian. Prosecutors are investigating the former president in a case of alleged money laundering after he admitted last week that his wife had moved US$20 million to overseas accounts held by their son and daughter-in-law.

http://www.taiwannews.com.tw/etn/news_content.php?id=721888&lang=eng_news&cate_img=logo_taiwan&cate_rss=TAIWAN_eng