Taiwan foreign minister resigns over diplomatic blunderBy Jonathan Adams Published: May 6, 2008
TAIPEI: The foreign minister of Taiwan and two other top officials resigned Tuesday over a botched attempt to win diplomatic recognition from Papua New Guinea, a scandal that has stirred public outrage against the outgoing government just two weeks before it is to step down.
Taipei was embarrassed by the public disclosure that about $30 million, which had been intended for Papua New Guinea in exchange for its switching diplomatic allegiance from Beijing, had disappeared.
Foreign Minister James Huang tendered his resignation over the case Tuesday. Vice Premier Chiou I-jen also resigned from the cabinet, a day after he left the Democratic Progressive Party and said that he would retire from politics. Vice Defense Minister Ko Cheng-heng resigned later Tuesday, The Associated Press reported.
In 2006, the government wired the $30 million to an account in Singapore that was controlled by two middlemen who had been enlisted by Taipei for the secret diplomatic gambit. After negotiations with Papua New Guinea foundered, Taiwan requested the money back, but to no avail.
Now, one of the middlemen - Ching Chi-ju - is on the run. The government says it does not know what became of Ching or the money.
http://www.iht.com/articles/2008/05/06/asia/taiwan.php