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Taiwan sues to retrieve S$42m
By Ong Dai Lin, TODAY | Posted: 02 February 2010 0906 hrs
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SINGAPORE: A lawsuit by Taiwan's government to retrieve US$29.8 million (S$42 million) from a multi-million diplomatic scandal opened in the High Court on Monday.
In August 2006, the Taiwanese government appointed Mr Ching Chi Ju and businessman Wu Shih Tsai to act as intermediaries in Taiwan's discussions with Papua New Guinea to establish full diplomatic ties. Mr Ching was the vice-chairman of a government-owned company in Taiwan and had connections with the government in Papua New Guinea.
The two men were given the money to be used for technological aid to Papua New Guinea after an agreement was signed between both governments. The money was deposited into an OCBC bank account in Singapore under their names.
But the discussions fell through in October 2006 and the Taiwanese government wanted the money back. Mr Ching was to meet a Taiwanese government official in Singapore on December 24 that year to return the money, but did not do so. He subsequently went missing, and so did the money.
Last October, Mr Wu, a Singaporean, was sentenced to two years and four months' jail after being convicted of forging a document in 2008 to mislead officials that the money was still in an OCBC account in Singapore. The Taiwanese government has since retrieved S$2.1million from Mr Wu.
Mr Ching, citing health reasons, is testifying via video from the United States. He is claiming that US$10 million of the money was his remuneration for being a secret emissary from 1995 to 2006 to improve the relationship between Taiwan and the People's Republic of China.
He has alleged that the rest of the money was used by Mr Wu to establish a diplomatic relationship with Taiwan and Papua New Guinea and as remuneration for the two men's role as intermediaries. Yesterday, Mr Huang Chih-Fang, Taiwan's Minister of Foreign Affairs from 2006 to 2008, told the court that as pursuing full diplomatic relations with a country was a sensitive matter, the Taiwanese government usually used intermediaries.
Mr Huang said Mr Ching relayed the information that Papua New Guinea wanted US$30 million deposited into a bank account in Singapore under his and Mr Wu's names as a "show of sincerity". And that the money would be given to Papua New Guinea once full relations were established. The former minister said he was not aware of any emissary role played by Mr Ching and "the understanding was clear that the entire sum of US$30 million was intended solely to pursue full diplomatic relations with Papua New Guinea".
In September 2006, the Taiwanese government transferred a sum of US$29.8 million into the OCBC account after deducting US$200,000 for expenses related to the negotiations. Mr Huang said he later decided not to sign the agreement with Papua New Guinea after he felt that the country only wanted to have enhanced bilateral relations with Taiwan. He will continue to testify on Tuesday.
- TODAY/sc
