Former vice premier released on bail over alleged corruption

Taipei, July 6 (CNA) Former vice premier and current Chairman of the Straits Exchange Foundation (SEF), Cheng Wen-tsan (鄭文燦), has been released on bail of NT$5 million (US$153,846) amid allegations of corruption dating back to his time as Taoyuan mayor from December 2014 to December 2022.

In a statement, Taiwan Taoyuan District Court said it approved on Saturday the release of Cheng as prosecutors have collected detailed evidence about the corruption case, which occurred seven years ago, and so there was no need to detain him.

In addition, the court said that four other suspects in the case have been detained.

Update: Bail for former Taoyuan mayor overturned by High Court (July 8)

Despite Cheng's release on bail, the court said he remains subject to restrictions on domicile and is barred from leaving Taiwan, while he has also been prohibited from contacting other suspects and witnesses in the case.

According to the court, another suspect in his late 80s, surnamed Yang (楊), was also released, but was barred from changing residence.

Cheng was summoned by prosecutors for questioning on Friday and after more than 16 hours, Taoyuan District Prosecutors Office sought court approval early Saturday morning to detain him, citing his major role in the corruption case.

The court said although Cheng denied any involvement in the alleged corruption case during the interview, the evidence showed he played a critical role in taking a bribe and leaking information to other suspects in the case.

Although the court did not provide details of the case, local media reported that Cheng took a bribe in a land rezoning project in order to assist with a land use purpose change for a plot of land located in Guishan District from farm land use to industrial development use.

Regarding another accusation that Cheng was engaged in money laundering related to the corruption case involving NT$5 million, the court said no evidence supported the allegation and rejected a request from prosecutors to detain him.

The Taoyuan Prosecutors Office said the court ruling had no merits and filed a petition against the decision during the hearing.

After hearing the ruling, Cheng left the court with a smile but did not talk to the press.

Earlier Saturday, Cheng, who served as vice premier under the Democratic Progressive Party (DPP) Tsai Ing-wen (蔡英文) administration from Jan. 31, 2023 to May 20, 2024, insisted through his lawyer that he was innocent, and said he is willing to work with police and prosecutors to clarify the facts and restore his reputation as soon as possible.

Cheng took over as the chairman of the Straits Exchange Foundation (SEF), which manages cross-strait technical and business affairs, after President Lai Ching-te (賴清德) took office in May.

Asked about Cheng's case, Lai told reporters on the sideline of an event in Tainan on Saturday afternoon that prosecutors should investigate anyone involved in illegal activities, regardless of his/her party affiliation, and must not indulge anyone who has committed wrongdoings.

In late 2022, National Taiwan University revoked Cheng's master's degree for plagiarism in the writing of his thesis, while the former Taoyuan mayor expressed "regrets" and apologized for mistakes made involving citations in the thesis. He was thereafter appointed vice premier.

Taoyuan is one of the largest six cities in Taiwan.

Update

July 7: Former Vice Premier Cheng Wen-tsan steps down as SEF chair