Chen Shui-bian - Family Scandals

Family Scandals

In May 2006, his approval rating, as determined by the TSU, fell to 5.8%, after a series of scandals centered on his wife and son-in-law. Additional sources showed his approval rating at around 20%. Support from his own party has also dropped with a few members calling for his dismissal as he had a bad influence on his party and has already caused them to lose the Republic of China presidential election, 2008.

On May 24, 2006, his son-in-law, Chao Chien-ming, was taken into custody by the Taipei police on charges of insider trading and embezzlement by the opposition party. This was a setback for the Chen Shui-bian administration. In related charges, there were accusations from the opposition party that Chen Shui-bian's wife was involved in trading stocks and obtaining Pacific Sogo Department Store's gift certificates illegally in exchange for settling the disputed ownership.

On June 1, 2006, Chen declared that he was handing control of governmental matters to Premier Su Tseng-chang and announced he would not be involved in campaigning. He also stated that he was retaining authority on matters that the Constitution required him to retain authority over, presumably foreign affairs and defense policy, as well as relations with the PRC.

On July 20, 2006, Opposition politicians accused that Chen used a total of NT$10.2 million (US$310,000) worth of "fake invoices" to claim expenses after the National Audit Office found irregularities in Presidential Office accounts. The Taiwan High Court Prosecutors' Office is currently investigating over this accusation.

In a press release issued by the Presidential Office responded that the president assured the investigators that he did not pocket a single cent of the fund. During questioning at the Presidential Office on the afternoon of August 7, 2006, the president detailed to the prosecutor how he spent the fund and presented relevant receipts and bank remittance statements.

President Chen also lost a libel case brought on successfully by PFP Chairman James Soong. Soong sued the President after Chen repeatedly accused him of secretly meeting the director of the People's Republic of China's Taiwan Affairs Office. Soong successfully sued Chen for NT$3 million.

On November 3, 2006, Chen's wife Wu Shu-chen and three other high-ranking officials of the Presidential Office were indicted of corruption of NT$14.8 million (US$450,000) of government funds using faked documents. Due to the protection from the Constitution against prosecution of the sitting president, Chen could not be prosecuted until he left office, and he was not indicted, but was alleged to be an accomplice on his wife's indictment.

The prosecutor of the case indicated that once Chen left office, his office would start the procedures to press charges against Chen. His wife Wu became the only sitting First Lady of the Republic of China to face criminal charges since the foundation of the Republic in 1911.

The indictment filed by prosecutors states that the indicted persons obtained government funds earmarked for secret foreign affairs, yet of six supposed secret diplomatic missions, there was sufficient evidence presented for only two. Of the remaining four, it was concluded that one did not exist, and in the case of the other three, the invoices presented were not found to be related to the secret missions.

The Pan-Blue coalition, after receiving the news, demanded to call for another recall motion unless Chen resigned immediately. Another small party that backed Chen previously, Taiwan Solidarity Union, said Friday they would likely to support the upcoming recall measure. If the recall passed, it would be up to the voters to decide Chen's fate in an island-wide referendum.

Leaders of the Democratic Progressive Party met together to discuss the unfavorable charges. The meeting ended when party leaders demanded Chen to explain the accusation within three days. There has long been crumbling inside the DPP that Chen has become their liability and should recall him before the presidential election. If Chen resigned, he would be the first Taiwanese president to step down and the vice-president, Annette Lu, would likely take power.

After the prosecutor announced the indictment news, the campaign leader Shih proclaimed that the indictment was the historical high point in Taiwan and the month long campaign was a success.

In a press conference November 5, 2006, Chen rebutted the charges against his wife and members of his Presidential office. He said that Taiwan government offices advised him to prepare the receipts in such a fashion, and that after six years of doing so, it is strange that they would never mention an irregularity if it was not the right way to do it. He promised that all of the money actually went to diplomatic missions and did not go into any private pockets. Furthermore, he mentioned that when he took office, he thought his salary was so excessive that he cut his own salary in half, and that reduction is more than the amount he is accused of embezzling, so there is no need for him to take that money. In addition, he said that if the charges against his wife were proven in a court of law just as they were charged, then he would at that time step down as President of the Republic of China.

In defense of Chen, journalist Therese Shaheen of The Wall Street Journal Asia pointed out that controversy surrounding Chen can be in part attributed to the radical reforms he has tried to implement since stepping into power.