Special Counsel prosecutors make 8th search for evidence

Chen Yun-lin, spokesman for the Special Counsel, refused to say where his prosecutors searched but denied the search was made to collect evidence against the ex-president’s involvement in the second financial reform scandal.

Millions of dollars are said to have been given to the former first family by financial holding companies, whose number had to be halved from 14 to seven in the second phase reform.

Banks were able to write off bad or non-performing loans in the first phase of financial reform in 2004.

Financial holding companies, including Chinatrust and Yuanta, jockeyed in a war of merger and allegedly bribed the former first couple to win the keen competition.

“Our search had nothing to do with the second financial reform scandal,” the Special Counsel spokesman said.

The United Evening News reported yesterday the Special Counsel searched a “leading” financial holding company to collect evidence to substantiate what Jeffrey Koo, former vice chairman of Chinatrust, told its prosecutors.

Koo ended his life as a fugitive in Tokyo for more than two years to return to Taipei to face Special Counsel prosecutors Monday.

He was wanted for insider trading, through which he tried to merge Mega Financial Holding with Chinatrust.

After 11 hours of questioning, Koo was released on a NT$100 million bail on the day of his arrival back in Taipei.

Meanwhile, Chen Shui-bian’s lawyers requested his release from detention.

Chen has been on a hunger strike at the Taipei detention house since November 12, when he was arrested on charges of forgery, corruption and money laundering.

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