Wife of Taiwanese president indicted

TAIPEI, TAIWAN —  Taiwanese prosecutors Friday indicted President Chen Shui-bian’s wife on perjury, forgery and embezzlement charges tied to a secret presidential fund and said they had enough evidence to charge him as soon as he leaves office.

The announcement comes after many thought the beleaguered president had weathered the worst. The move increased the pressure on Chen to resign and sent this island into political turmoil.

A sitting president enjoys broad legal immunity under the Taiwanese Constitution. Only a few crimes related to sedition are deemed serious enough to force the leader from office. Even murder is not enough.

The prosecutor’s office said Friday that it had enough evidence to indict Chen as a citizen but that, given the constitutional barriers, any legal action must wait until he steps down. The situation worsens Taiwan’s leadership vacuum but also gives Chen an incentive to keep fighting, because in politics, public perception and party support can be as important as the law.

The opposition called for Chen’s resignation, and his Democratic Progressive Party demanded a full explanation by Monday. Then it must decide whether to kick him out of the party or unite behind him ahead of next month’s local elections and the 2008 presidential poll.

Chen has said that the secret $1-million presidential fund was used to further diplomatic relations abroad. China views Taiwan as part of its territory, and Taipei has often used “dollar diplomacy” to gain greater international recognition.

Chen did not comment on the charges Friday, but he has said he would step down if evidence of wrongdoing surfaced.

Prosecutors detailed evidence of at least $140,000 spent for personal use between July 2002 and March 2006 by Chen’s wife, Wu Shu-chen, and close family members. Among the items allegedly bought were a $39,000 Tiffany diamond ring, a $10,000 Cartier ring, sunglasses, clothes, shoes and gold jewelry.

Wu has also been accused of accepting shopping vouchers from a prominent department store. The couple’s son-in-law, Chao Chien-ming, is on trial for alleged insider trading. And former close aide Chen Che-nan faces corruption and insider trading charges.

“This is a victory for the judicial system and our democratic system,” said Antonio Chiang, an independent analyst and former presidential aide. “He should step down, and it’s much better if he’s forced to step down through due process than from demonstrations in the street, which only creates a vicious cycle.”

Zhou Zongmu, a 35-year-old sales manager in Taipei, agreed. Chen has lost voters’ confidence, he said, and “can’t act as our president under this situation.”

But his colleague, 25-year-old Jennifer Chung, expects Chen to remain in office, “just like he always does.”

The president is a dogged fighter with a history of defying the counsel of those around him. In comments late Friday, aides said a likely political defense would be that charges are not the same thing as a conviction under a legal system that presumes innocence.

Whatever Chen decides, Taiwan can expect months of instability at a time when the legislature is mired in discord. Within the DPP, various factions are at odds over strategy, tactics and who should lead the party into the presidential vote.

After weeks of relative quiet, thousands of protesters gathered in front of Taipei’s main railway station within minutes of Friday’s news.

If Chen resigns, Vice President Annette Lu, not known for her consensus skills, would become leader.

“She is really a loose cannon,” said George Tsai, a professor at National Chengchi University in Taipei. “But according to our constitution, she’s the one.”

mark.magnier@latimes.com

Times staff writer Magnier reported from Shanghai and special correspondent Chou from Taipei.