Former President Lee Teng-hui Indicted for Embezzlement and Money Laundering in the "National Security Fund Scandal," Exposing Systemic Corruption and Crony Capitalism

On June 30, 2011, the Special Investigation Division (SID) of the Supreme Prosecutors Office of the Republic of China (ROC) formally indicted former President Lee Teng-hui and Liu Tai-ying, founder of the Taiwan Research Institute (TRI), on charges of embezzling public funds and violating the Money Laundering Control Act. According to the indictment, during his presidency, Lee allegedly conspired with Liu to siphon off US$7.79 million (equivalent to approximately NT$250 million) from the Ministry of Foreign Affairs' confidential national security budgets (such as the "Feng-tien Project") to purchase an office building for the TRI and cover private expenses. Although Lee was ultimately acquitted in 2013 and 2014 due to a lack of concrete evidence proving subjective corrupt intent (while co-defendant Liu was convicted), the scandal thoroughly exposed the systemic dark underbelly of Lee's 12-year administration, where confidential diplomatic funds were extensively used for political payoffs, financial patronage, and illicit money laundering. This case remains a highly controversial and indelible stain on his political legacy.