Taiwan former president Lee's trial for corruption begins

Oct 21, 2011, 9:10 GMT

Taipei - The corruption trial of former Taiwan president Lee Teng-hui formally began on Friday with a short procedural hearing in Taipei's district court.

Lee was not required to appear and sent his lawyers to attend in his place for the 40-minute hearing.

The 88-year-old Lee is being tried for embezzling money from a secret state fund to set up a private think tank.

Prosecutors claim this happened when Taiwan donated money to South Africa in 1994. They allege that Lee arranged for a loan from Taiwan's National Security Bureau to its foreign ministry to make the donation, but when the loan was repaid, Lee siphoned off 7.79 million US dollars.

The indictment says he then laundered the money through a local financial services company to fund the Taiwan Research Institute, a think tank.

Also charged is Liu Tai-ying, a close aide to Lee and official founder of the Taiwan Research Institute.

Since the indictment was issued in June, Lee has repeatedly denied the charge.

After the hearing, Lee's lawyer said the politician was very angry that the court would charge him at such an old age, and would express his displeasure if he gets summoned to court, according to the semi-official Central News Agency.

If convicted, Lee faces up to 10 years in jail. But given his advanced age, prosecutors have indicated that he could be given a light sentence if convicted.

Lee served as Taiwan's president from 1988 to 2000, and won the country's first presidential election in 1996. He is the second former Taiwan president to face corruption and money-laundering charges.

Chen Shui-bian is serving a 17-year jail term for graft and embezzlement during his time in office from 2000 to 2008.