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TAIPEI : Taiwan's vice premier quit the ruling Democratic Progressive Party (DPP) on Monday, taking responsibility for an embarrassing diplomatic scandal involving the alleged embezzlement of US$30 million.
The cash had been earmarked for Papua New Guinea in a bid to gain support for Taipei's international recognition over Beijing, but authorities here have alleged it was pocketed by businessmen instead.
"I deeply regret the Taiwan-Papua New Guinea diplomatic scandal and am full of shame towards the country and people," Chiou I-jen said in a statement.
"While cooperating with the judiciary in the investigation, from now on, I withdraw from the DPP I love."
Chiou, a right-hand man of outgoing President Chen Shui-bian, said he would "cease all political activities forever" when the new Kuomintang government comes to power on May 20, but will stay on as vice premier until then.
However, Chiou's move has failed to dampen outrage here, with legislators from the DPP and the incoming ruling Kuomintang party demanding that he step down immediately.
"This scandal is so unbelievable that he must immediately quit as the vice premier to take responsibility while facing legal investigation," an angry DPP legislator Yeh Yi-chin told reporters.
Chiou last week apologised to his fellow countrymen over the scandal but refused to resign his government post.
Yeh also asked the outgoing president to quit the party as critics suspected that President Chen might have helped cover up the scandal, which is another blow to the outgoing government of Chen's DPP, still reeling from severe setbacks at parliamentary and presidential polls this year.
The embezzlement allegations have embarrassed Chen, who has sought to convince states in the South Pacific, Latin America and Africa to switch allegiance from Beijing to Taipei.
Only 23 countries in the world formally recognise Taiwan over China. The two split in 1949 after a civil war.
The scandal surfaced last week when Singapore's high court approved Taiwan's request to freeze the joint bank account of two businessmen who were to serve as "intermediaries" to help Taipei forge ties with Papua New Guinea.
The two businessmen, a Taiwan citizen and a Singaporean, were recommended by Chiou, then national security bureau chief, to the foreign minister James Huang back to 2006.
Chiou, foreign minister James Huang and vice defence minister Ko Chen-heng have been questioned by prosecutors over the alleged embezzlement of funds.
- AFP/vm
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