TAIPEI - TAIWAN'S former president on Friday rebutted what he called 'malicious' reports that his son secretly opened bank accounts in Japan, the latest money laundering allegations against the family.

'The reports on Chen Chih chung opening bank accounts in Japan to launder money are absurd, malicious fabrications,' said a statement from the office of ex-leader Chen Shui bian.

It rebutted press reports relating to Chen Chih chung's visits to Japan, saying he only entered the country four times for holidays during the former president's eight-year term that ended in May.

Taiwan's China Times on Thursday cited unnamed sources as saying that Chen Chih-chung made 13 undocumented trips to Japan. The report came amid growing speculation that his family has stashed huge funds there.

Chen's office also dismissed a Next Magazine report this week that the ex-leader's family had wired three billion Taiwan dollars (S$137,097) to Japan and that the funds were mostly used to buy stocks of Mitsui Sumitomo Bank.

The Taipei-based magazine alleged that Chen's family had taken that money in bribes from Taiwanese bankers during financial reforms in Chen's presidency.

Chen, his wife, son, daughter-in-law and brother-in-law have all been named as defendants in a money laundering case.

The ex-leader, detained since last month, is also being investigated for allegedly embezzling government funds, taking bribes and forging documents.

Chen, the first former Taiwanese leader ever to be arrested, can be held for four months before prosecutors have to charge him.

His pro-independence stance while in office angered Beijing and he has repeatedly accused the island's current China-friendly government of being behind the corruption allegations against him. -- AFP