By Hayley J. Campbell
Impunity Watch Reporter, Oceania

TAIPEI, Taiwan — Taiwan’s vice premier quit on Monday after announcing he had taken part in transferring $29.8 million to a man who has disappeared.

The money was reportedly sent to a Taiwanese intermediary, Ching Chi-ju, and was to provide economic aid to Papua New Guinea on the condition that the country support Taiwan’s international recognition over China. Instead, the payments were made to two businessmen: Wu Shih-tsai from Singapore, and Ching.

In late 2006, the Taiwanese government decided to abandon the deal, believing Papua New Guinea was unlikely to take it. For almost 60 years since civil war split Taiwan and China, the two countries have called on other nations to take sides. China has used its economic prowess to lure some of Taiwan’s allies. In response, Taiwan has been offering economic incentives to keep allies from abandoning support.

On Monday, Taiwan police questioned Chiou, after allegations surfaced that senior members of the Taiwanese government may have accepted bribes from Wu and Ching as part of the deal.

“I feel deeply ashamed in the face of my country and people,” Chiou said in a brief statement. “In addition to helping with judicial investigations, I will withdraw from my beloved Democratic Progressive Party.”

As of now, authorities have been unable to locate either Ching or the $30 million.

For more information, please see:
Sydney Morning Herald — PNG govt denies Taiwan’s missing money — 06 May 2008

Taipei Times — Spreading Controversy Over Botched PNG Diplomatic Ties — 06 May 2008

Associated Press — Taiwan’s vice premier quits party amid scandal — 05 May 2008

Radio New Zealand International — Taiwan’s vice-premier quits over PNG graft claim — 05 May 2008

The New York Times – Man pocketed millions in Taiwan affair – 03 May 2008

BBC News —  China’s new South Pacific influence — 03 May 2008