The Control Yuan made the statement in response to media reports and allegation by opposition Kuomintang (KMT) Legislator Chiu Yi that the president may have violated laws governing public functionaries’ private assets and political donations by failing to report his alleged Taishin Bank account to the Yuan.

Chiu said President Chen has been switching his funds between the Taishin account and his Formosa Foundation account.

He said Chen could have transferred the bulk of funds abroad, although he did not present and solid evidence or documents.

If it turns out that such a bank account exists and the account holder has failed to abide by relevant laws, the Control Yuan said it would “take further steps” as necessary.

The Presidential Office has not yet provided what it called “further explanation” about the alleged accounts, which Legislator Chiu claimed were used to launder slush funds.

Lee Nan-yang, director of the Presidential Office’s department of public affairs, has said the alleged Taishin account was actually an open account set up during the 2004 presidential elections.

Tan Sun Chen, secretary-general to the president, referred the press to Lee’s “initial explanation” about Chiu’s allegation, adding that if there is need for further understanding on the issue, the Presidential Office will provide further explanation to the people.

Meanwhile, Tsai Huang-lang, spokesman for the ruling Democratic Progressive Party (DPP), claimed that Chiu was using the “open fund-raising account” to smear the president.

Urging the president to sue Chiu for defamation, Tsai also called on the Presidential Office to immediately publish all details of the account as a means to stop Chiu’s “allegation politics.”

Chiu claimed Saturday that Chen has a secret account containing NT$170 million at the Nanmen (South Gate) branch of Taishin Bank.

According to Tsai, the bank account was set up by Chen on Jan. 5, 2004 to receive political donations from the public prior to the March 20 presidential election that same year. The bank account was closed April 1, 2004, with only over NT$1.7 million left, he claimed.

Denying that the bank account was secret, Tsai said that it was scrutinized by the financial committee of the DPP’s election campaign headquarters at that time.

Tsai also called on Chen to make public the relevant details as soon as possible.

Tsai blasted Chiu for nitpicking over the fact that Chen did not have to report the bank account to the Control Yuan.

As to a claim by Chiu that Chen’s Formosa Foundation also owns a secret bank account, Tsai said that the account has existed for more than 10 years, adding that Chiu should immediately stop smearing the president and the DPP government.