‘Ex-Taiwan president gave Estrada $1-M’

TAIPEI (AFP) — Former Taiwan president Lee Teng-hui secretly donated $1 million to deposed President Joseph Estrada’s political campaign, local media reported yesterday.

In 1998, the funds were channeled through the Manila account of Eric Lin, deputy chairman of Taiwan’s Hong Kuo construction group, the United Daily News said, quoting investigators probing kickback allegations against financier Liu Tai-ying.

Liu, now chairman of China Development Financial Holding Corp., once controlled the huge business empire of the former ruling Kumintang party (KMT).

The donation was made at the order of then President Lee Teng-hui, Liu told investigators.

Liu claimed the funds were "contributions" to the KMT from Taiwan Pineapple and Top Construction in appreciation for financial help they received from the party’s business management committee, the paper said.

Liu has been under investigation for forgery and breach of trust charges for taking massive kickbacks from four companies — including Taiwan Pineapple and Top Construction — from 1996-1998.

Investigators discovered some 400 million Taiwan dollars ($11.5 million) in "suspicious funds" channelled to the accounts of Liu’s two sons and confidantes after the four investments were made, the China Times has reported.

Liu had denied "pocketing" any money.

Estrada, who won the 1998 presidential elections by a landslide over nine other candidates, is now in jail for the capital offense of plunder after he was ousted during the January 2001 people power II popular