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Updated Monday, October 20, 2008 9:27 am TWN, The China Post news staff

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Ma brothers questioned over ‘cash’ for Chen Shui-bian

The takeover took place about the same time with the ex-first son's marriage and Ma Wei-chen's alleged remission of the cash present.

In a statement, the Yuanta group denied involvement in the money laundering. Press reports said it gave President Chen NT$300 million (US$9.8 million) to take over Fuhwa.

Yuanta categorically denied reports, saying none of its outlets, including those overseas, were involved in money laundering.

The case would be clarified when a Swiss court report comes from Zurich.

That report is expected to reach Taipei this week, court sources said.

Most of the slush fund is deposited with banks in Switzerland, including Credit Suisse. The money laundering came to light Aug. 14 when news broke that millions of dollars had been remitted from Taipei via Hong Kong and Singapore to Swiss banks.

That day, the ex-president admitted part of the government campaign contributions in 2000 and 2004 wound up in the Swiss banks. He apologized but blamed his wife for remitting the money without his knowledge.

After the new report, court sources said prosecutors will subpoena Chen Chih-chung for questioning as a defendant in the money laundry case.

President Chen's son originally claimed all money he had helped deposit in the Swiss banks was from cash wedding gifts, said sources close to the Special Counsel.

"The report will make it clear whether Chen Chih-chung lied about the sources of the money," one Special Counsel source pointed out.

Police searched offices of Yuanta and two other financial holdings groups on Friday. The other two were the Chinatrust and China Development Financial Holding Companies.

Files were seized and Special Counsel prosecutors are trying to find out whether the other two groups are also involved in the sensational money laundering by the ex-first couple.

Moreover, the former first lady is standing trial for corruption, charged with borrowing receipts from friends and relatives to claim a NT$14.8 million reimbursement from her husband's "state affairs" fund.

He wasn't indicted, for he was immune to prosecution while he was present, but was regarded as an unindicted co-defendant who would be formally charged on leaving office.

During the current investigation, the Special Counsel is trying to prove Chen had a major part of his state affairs fund remitted abroad to set up a foundation for creating an independent sovereign republic of Taiwan.

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