20101107 Court decision could thaw Chen’s funds

Court decision could thaw Chen’s funds

WAITING GAMEProsecutors have the ability to appeal the bribery ruling, which would keep the disputed money out of the hands of the former president’s family

Staff Writer, with CNA

Former president Chen Shui-bian (陳水扁) could recover NT$570 million (US$18.93 million) frozen in a Swiss bank if Friday’s not guilty verdict on charges of bribery and money laundering is upheld, prosecutors in charge of the case said.

The money has been frozen at Swiss private bank Wegelin & Co since Chen and his wife were indicted in December last year for taking as much as NT$610 million from two financial holding -companies to help them in their bids to acquire smaller banks as part of the government’s push for consolidation in the banking sector.

The couple were accused of taking NT$400 million from Cathay Financial Holdings in exchange for facilitating a merger between Cathay Financial and World Chinese Commercial Bank.

They were also alleged to have accepted NT$210 million from -Yuanta Financial Holding in -exchange for having the president use his authority to help the company acquire Fu-Hwa Financial Holding.

The Taipei District Court on Friday found both Chen and his wife Wu Shu-jen (吳淑珍) not guilty.

The court said it ruled in favor of the defendants because there was no evidence proving that the money given by the financial holding companies to the couple was reciprocated by Chen with help to manipulate the mergers.

The ruling can be appealed by the prosecutors.

Prosecutors had Swiss authorities freeze the NT$570 million because they believed it was related to the alleged bribery, but if Friday’s ruling stands, the money will be -unfrozen for the use of Chen’s family, prosecutors said.

Attorney Shih Yi-lin (石宜琳) said that the president did not have the power to decide on issues related to bank mergers and that the money Chen received came in the form of political donations, and therefore he deserved to be found not guilty.

Accepting bribes was one of several charges against the former president and members of his family, which also included money laundering, embezzlement of the president’s state affairs fund and corruption.

Chen and his wife are currently appealing a 20-year jail sentence on multiple counts of corruption in a separate trial.