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TAIPEI - Taiwan's vice premier and its foreign minister resigned Tuesday to shoulder responsibility for the island's worst diplomatic scandal involving the alleged embezzlement of US$30 million.
Vice Premier Chiou I-jen told a press conference he was standing down while the investigation took place, saying he hoped it would prove his innocence.
"I am resigning to smooth the judicial investigation of the case and hope it will return me my innocence," Chiou said.
Separately, a foreign ministry official said Foreign Minister James Huang had also tendered his resignation, which had been accepted.
"Foreign Minister James Huang has tendered his resignation, which has been approved by Premier Chang Chun-hsiung," the official said.
The scandal has rocked the island in the last weeks of outgoing President Chen Shui-bian's administration.
The government cash was earmarked for Papua New Guinea in a bid to secure its diplomatic recognition of Taiwan over rival China, but authorities allege it was pocketed by Singaporean businessman Wu Shih-tsai and a Taiwanese
businessman named Ching Chi-ju.
The scandal came to light last week when Singapore's high court approved Taiwan's request to freeze the joint bank account of Wu and Ching.
Chiou, Chen's right-hand man, insisted he did not receive any of the cash. "I did not receive a penny," Chiou said. However, "I blame myself for having caused such waves in society and such grave damage to the country," he said.
President Chen said he had ordered judicial authorities to look into the
scandal.
"The development has tarnished the image of the country, the government and the ruling party (Democratic Progressive Party). I'm deeply sorry for this and apologise to the people," he said.
Only 23 nations around the world formally recognise self-ruled Taiwan over China, from which it split in 1949 after a civil war.
Taipei lost its UN seat to Beijing in 1971, and both sides have often used generous financial packages to influence governments - especially in Africa, Latin America and the Pacific - to ensure loyalty or persuade them to switch recognition. - AFP/al
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