TAIPEI: A Singaporean charged with forgery and making false claims in Taiwan's most bizarre diplomatic scandal in recent years told a court he was not familiar with its laws.

Wu Shih-tsai, 55, made his final defence in court yesterday against charges of forging a document last year to mislead officials into believing that US$29.8 million (S$43.8 million) in government funds meant to help Taiwan set up diplomatic ties with Papua New Guinea were still in an OCBC account in Singapore.

Fund and intrigue THE Papua New Guinea diplomatic fund scandal is a tale of secret brokers, chequebook diplomacy and US$30 million, which has yet to be found. In August 2006, then vice-premier Chiou I-jen roped in Singaporean Wu Shih-tsai and Ching Chi-ju, who holds American citizenship, to help get Papua New Guinea to drop China in favour of Taiwan as a diplomatic ally. ... more

The account was set up in his name and that of businessman Ching Chi-ju, who holds an American passport.

But the money had been removed and was suspected to have been pocketed by Wu and Ching, Taiwan's media reported. Both men were supposedly middlemen assigned to help Taipei's Foreign Ministry seal the diplomatic deal.

Wu, a Singaporean who obtained Taiwan citizenship after marriage but has since given it up, is also charged with making a police report about false death threats when investigations were initiated against him.

'Please give me a light sentence, considering that I don't really know Taiwan laws,' he pleaded yesterday.

Wu's defence lawyer Jeff Yang said his client made the false report because he feared for his life and wanted police protection.

Another point of contention raised by Mr Yang was that it was in Singapore that Wu had handed the forged document to Mr Chang Chiang-sheng, an aide of Taiwan's then-foreign affairs minister James Huang, last August. Thus the Taiwan court had no jurisdiction over the case, argued Mr Yang.

But Mr Chang said Wu carried out the deed at Taiwan's Foreign Ministry.

The case of the Papua New Guinea missing diplomatic funds erupted this April, when Taiwan applied to Singapore's High Court to try to get back the US$29.8 million in the OCBC account.

The money was set aside in September 2006 for Wu and Ching to help Taiwan forge diplomatic relations with Papua New Guinea after the two were enlisted for the job by then vice-premier Chiou I-jen.

When efforts fell through by December that same year, Taiwan's government tried to get the money back.

Ching was supposed to meet MrChang in Singapore on Dec 24 that year to return the money, but did not do so. Ching subsequently went missing, and so did the money.

A big part of the sum - US$26.8 million - had been moved to an account owned by Ching. The other US$3 million was allegedly channelled to a bank account belonging to Wu, Taiwanese media reported earlier.

Ching, who is reportedly in the United States, issued a defence through his Singapore lawyer last month, saying the money had been used to promote Taiwan's diplomacy.

Some US$20 million was given to Papua New Guinea, while about US$10 million was used to fund efforts to improve Taiwan's ties with China, he claimed.

The Taipei government has no reason to ask for a refund, he argued.

Wu faces up to six years' jail in Taiwan if found guilty of forgery, using forged documents and making false claims. Prosecutors have not filed other charges against him as they are still trying to trace the money.

The court is scheduled to pass sentence on Oct 23.

hoaili@sph.com.sg