Taiwan

Ex-Taiwan leader Lee indicted on graft charge

(Agencies)
Updated: 2011-06-30 14:44

TAIPEI - Former Taiwan leader Lee Teng-hui was indicted Thursday on charges of embezzling from a security fund, becoming the island's second ex-leader to run afoul of the judiciary.

Prosecutor Chen Hong-ta said Lee and top aide Liu Tai-ying had been charged with embezzling $7.79 million from a secret diplomatic fund.

In a statement, prosecutors said Lee embezzled the money to set up a think tank meant to serve his private office after he left political life.

"Lee Teng-hui pocketed $7.79 million for his own personal use through money-laundering," the statement said. "In order to set up the Taiwan Research Institute, he consulted with his advisers and decided to get the money from a security bureau project fund."

Prosecutors began looking into the case after Lee stepped down in 2000, and three years later charged the bureau's chief accountant with corruption. Those charges were eventually dropped for lack of evidence.

Lee has repeatedly denied embezzling the fund. His office had no immediate comment Thursday but said his lawyers would hold a news conference later in the day.