2 suspects in ex-first family’s probes to return kickbacks

Chief Prosecutor Chen Yun-nan, the spokesman, told the press that Lee Chieh-mu, former director general of the Hsinchu Science Park Administration, and Tsai Ming-che, a friend of former first lady Wu Shu-jen, signed their confessions of guilt and agreed to return all kickbacks or bribes illegally obtained in relevant cases to the bank accounts designed by prosecutors. This will be the first retrieval of illegally-got money in connection with corruption and money laundering scandals involving former President Chen Shui-bian and his family members.

Both Lee and Tsai resolved to return their dirty money of NT$30 million and NT$70 million, respectively, mainly to seek a reduction of jail terms. The action is also deemed to have strongly consolidated the evidence against the corruption and money laundering crimes committed by ex-President Chen and his family members. After signing the confessions, Lee and Tsai were released on bail of NT$500,000 and NT$3 million, respectively.

Despite their release, both are required to report any change in their residences and are barred from leaving the country.

Lee was taken into custody Oct. 29 in a probe into a land deal in Longtan in Taoyuan County in which Lee was suspected of having taken a bribe from a local business group during his stint as director general of the Hsinchu Science Park Administration.

Tsai was detained and held incommunicado Oct. 2 for his suspected bribe taking in the Longtan land deal and in the construction of the Taipei World Trade Center Nangang Exhibition Hall. Funds paid by the development company that owned the Longtan property to secure its sale to the Hsinchu Science Park also allegedly ended up in overseas bank accounts belonging to the former first family, with Tsai and Lee seen as facilitators in the deal. The duo were freed a day after former President Chen Shui-bian’s cashier, Chen Chen-hui, was released unconditionally, with prosecutors rescinding her detention order.

Chen Chen-hui was detained Sept. 25, making her the first suspect in the investigation into the alleged corruption and money laundering cases embroiling the former first family to be taken into custody.

Huang Chun-ming, an administrative court chief under the Taipei District Court, explained Friday that there was no longer any reason or need to detain Chen Chen-hui, so prosecutors, without requiring a separate court ruling, opted to rescind her detention. Local media speculated that Chen Chen-hui was released without conditions because she agreed to turn state witness.

In contrast, the release of Lee and Tsai required court rulings because reasons to detain them still existed, Huang said, adding that the duo were released on bail mainly because prosecutors saw no need to detain them any longer.

In their probe into the alleged misuse of Chen Shui-bian’s “special state affairs fund,” prosecutors have reportedly uncovered irregularities in the former first family’s financial dealings, including the high-profile money laundering case.

Chen Chen-hui’s detention was seen to be crucial to the probe, as prosecutors reportedly obtained disks during a raid on her home that contained meticulous records of every transfer to the overseas bank accounts of the former first family.

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