Taiwan ex-president quits party
over alleged money laundering

TAIPEI (AFP) – Taiwan's former president Chen Shui-bian on Friday quit the Democratic Progressive Party (DPP) after money laundering allegations against him and his family
surfaced this week.

"I have to say sorry to DPP members and supporters
with a heavy heart. I let everybody down and caused irreparable damage to the
party. This was not my intention but I made mistakes," Chen said in a
statement.

"To show my deepest remorse, my wife Wu Shu-chen and I leave the DPP from now," he
said.

The statement came hours after Taiwan's premier, Liu Chao-shiuan,
confirmed an investigation had been launched into the money laundering claims
apparently implicating the Chen family, following similar moves by Swiss
authorities. Swiss prosecutors "have requested assistance in their
investigation and we have immediately started our own probe," Liu told
reporters.

The Taipei District Prosecutors' Office sent a top official
to Switzerland
earlier this week "to exchange views" with the authorities there,
said spokesman Fred Lin.

The former president admitted that his wife Wu Shu-chen had
wired abroad 20 million US dollars from his past campaign funds, saying she had
done so without his knowledge.

Copies of Swiss documents obtained by Kuomintang lawmaker Hung Hsiu-chu showed that Chen's
son Chen Chih-chung and daughter-in-law Huang Jui-ching had transferred 31
million US dollars to Huang's Swiss bank accounts
in 2007.

The couple left Taiwan on August 9 before the case
came to light, according to Taiwanese authorities.

Their whereabouts are not immediately clear and the
allegation is that some of the 31 million may have come from Chen's campaign
funds and state coffers.

Chen has denied money laundering.

A string of corruption scandals implicating Chen, his
family and top DPP officials has tarnished the party's image and played a part
in the party's defeat in the March presidential vote.

DPP chairwoman Tsai Ing-wen
also apologised to the public and said the party would not cover up for Chen.

Chen is already under investigation for allegedly
embezzling 14.8 million Taiwan
dollars (480,500 US)
in special expenses from the government while he was president, and his wife is
on trial for corruption and document forgery in the same case.

He was named a suspect in that case in 2006 but escaped
immediate prosecution because he had presidential immunity.

The ex-president was questioned Tuesday over the
embezzlement allegations, a week after his successor Ma
Ying-jeou declassified documents allegedly
implicating him.

Chen has admitted using false receipts to claim money from
the state, but insisted those funds were used for "secret diplomatic
missions" and not his personal benefit.

Nevertheless, prosecutors found that at least 1.5 million Taiwan dollars
had been spent on diamond rings and other luxury items for his wife.

Prosecutors launched a probe against Chen on May 20 -- the
day he left office after his second and final four-year term.