FORMER PRESIDENT CHEN SHUI-BIAN DETAINED ON

C O N F I D E N T I A L SECTION 01 OF 03 TAIPEI 001604

SIPDIS

E.O. 12958: DECL: 11/12/2018
TAGS: PGOV TW
SUBJECT: FORMER PRESIDENT CHEN SHUI-BIAN DETAINED ON
CORRUPTION CHARGES

Classified By: AIT Director Stephen M. Young,
Reasons: 1.4 (b/d)


1. (C) Summary: Former President Chen Shui-bian taken was
taken into custody yesterday and sent this morning to the
Taipei Detention Center where he is being held incommunicado.
The Taipei District Court approved Chen's detention on
grounds that he is suspected of committing corruption-related
felonies that carry penalties exceeding five years in prison
and that he might collude with accomplices if left free.
According to the media, Chen may be indicted later this month
or next month, at which time the details of the prosecutors'
case will be made public. Reactions to Chen's arrest have
fallen along partisan lines. DPP politicians have called for
Chen to be given a fair trial, and they have argued that the
government is attempting to discredit and humiliate the DPP
by detaining Chen and other DPP officials. Some KMT
legislators reacted gleefully yesterday but today the party
has been subdued and circumspect in its comments. Chen's
arrest did not come as a surprise, and so far, public
reactions have been limited. End Summary.


2. (SBU) Former President Chen Shui-bian was taken into
custody following a fifth and lengthy final round of
questioning by the special prosecutors unit on November 11.
As he was being escorted out of the prosecutors' office, a
defiant Chen showed off his handcuffs to the media, shouting,
"political persecution." The prosecutors took Chen to the
Taipei District Court to request approval that he be detained
incommunicado. This court session was interrupted after Chen
asserted that a bailiff had injured him when departing the
prosecutors' office. After spending time at the National
Taiwan University hospital to check on his injuries, Chen
reappeared at the court, which early this morning (Nov. 12)
approved the prosecutors' request and sent Chen to the Taipei
Detention Center. The Taipei District Court approved Chen's
detention on the grounds that he is a potential defendant
suspected of committing a series of felonies including
embezzlement of public funds, graft and corruption, and money
laundering that carry penalties exceeding five years in
prison and that he might collude with accomplices if left
free.


3. (C) The decision to detain Chen is consistent with
Taiwan's criminal procedure law and is a move regularly used
by prosecutors when winding up high-profile investigations.
Chen's lawyers can appeal the detention decision and they can
seek his release on bail but such a move may not be
successful. The next major step in the legal proceedings
against Chen is likely to be a formal public indictment,
which will specify all charges and requested sentences, and
will lay out the prosecutors' arguments in considerable.
According to media reports, the indictment against Chen may
be issued either later this month or next month. According
to the media, charges against Chen are likely to include
embezzlement of monies from a special State Affairs Fund that
was supposed to be used for "secret diplomacy," accepting
bribes from businesspeople, and laundering of funds abroad.
When Chen is indicted, he may be released on bail, remaining
free until the conclusion of the three-stage trial process.
The case against Chen is complex and his trial before a panel
of three judges and, if convicted, his subsequent appeals,
are likely to be protracted and subject to many legal
maneuverings.

Chen Shui-bian Claims He is a "Political Prisoner"
-------------- --------------


4. (C) During the weeks prior to his arrest, Chen had made a
number of trips to his supporter strongholds in southern
Taiwan, delivering impassioned speeches in which he denied
that he had embezzled any money, claimed that he would become
President Ma Ying-jeou's first political prisoner, and
asserted that he would be honored to "carry the cross" for
the Taiwanese cause. Chen had also urged his supporters to
demonstrate on his behalf if he was jailed. On the day

TAIPEI 00001604 002 OF 003


before his arrest, Chen told a press conference that he
expected to be detained the next day. As he was entering the
prosecutors' office, Chen bid farewell to his supporters,
telling them he was headed to the "Bastille," and that he was
a sacrificial offering by the KMT to "placate Chinese anger"
over the recent demonstrations against Chen Yunlin.
Thousands of police were deployed and a large number of
barricades set up to prevent violent incidents between
impassioned supporters and critics of the former president.
In the event, however, the numbers of supporters and
detractors turning out at the prosecutors' office and the
court were quite small.

DPP Reactions
--------------


5. (C) A number of DPP legislators accompanied Chen to the
prosecutors' office, court, and hospital, and this morning
the DPP caucus held a press conference. DPP legislators
argued that the government's pre-indictment arrest and
handcuffing of Chen was unwarranted, and was part of a
pattern of efforts by the KMT government to discredit and
humiliate the DPP. They noted a large number of similar
recent detentions of current and former DPP officials
(including two county magistrates and nine other persons
connected to Chen's case),pointing out that the prosecutors
have not taken such actions against KMT officials. The DPP
argues that prosecutors misuse such detentions to try to
pressure people into giving evidence against their will.
Some legislators predicted the arrest of Chen will further
polarize Taiwan's society. While criticizing the prosecutors
and the KMT government, DPP legislators were careful to
maintain their distance from Chen's legal problems, stressing
their hope that judicial proceedings would be fair and
impartial. This afternoon, DPP Chairperson Tsai Ing-wen
issued a statement criticizing leaks by the prosecutors and
prejudicial statements by President Ma and Justice Minister
Wang that could turn the judiciary into a political tool.
The statement also called on DPP supporters to remain calm
and rational.

KMT Reactions
--------------


6. (C) Some of the more outspoken KMT legislators reacted
gleefully yesterday at news of Chen's arrest. Today,
reactions by KMT officials have been much more circumspect.
President Ma said the court's decision to detain Chen may
serve as a lesson and reminder for all and that people should
feel sad not happy. Ma also urged people to wait calmly for
the court to deliver its final verdict. Some KMT leaders
suggested that the Taiwan people should trust the judiciary
and give it room to handle the case impartially and
independently. Some KMT legislators expressed hope that
Chen's detention would not increase confrontation between KMT
and DPP supporters and that the DPP would not play up the
issue for political purposes.

Comment
--------------


7. (C) Over the past several months, many details of the
supposedly confidential investigations of Chen have been
leaked to the public through the pro-Blue media. As a
result, the detention of Chen does not come as a surprise and
Chen's claim that he is a political prisoner, not a corrupt
politician, will have limited resonance. However, coupled
with the numerous recent detentions of other current and past
DPP officials and the DPP's demonstrations against the visit
of the PRC's Chen Yunlin, Chen Shui-bian's arrest will fuel
the DPP sense that the judicial process is currently being
used by the KMT to intimidate the DPP. The new DPP
leadership finds itself in an awkward position, since many
privately concede that Chen may be guilty of some offenses,
but the overall case is also seen as aimed at discrediting
the party, forcing Tsai and other prominent DPP members to

TAIPEI 00001604 003 OF 003


openly criticize the proceedings.
SYOUNG