TAIPEI - A TAIWANESE tycoon on Wednesday rejected bribery allegations over the acquisition of a department store in the latest chapter of a money-laundering scandal implicating the family of the former president.

The Apple Daily newspaper reported earlier Wednesday that prosecutors had received a tip-off that Far Eastern Group chairman Douglas Hsu allegedly gave 11.5 million US dollars (S$16.3 million) to then president Chen Shui bian.

The money was said to have been transferred while Hsu bid and acquired the department store chain Pacific Sogo between 2002 and 2003.

'The allegations are totally false,' Hsu told reporters. 'Far Eastern does not give bribes. I fully support the investigation to clarify these things.

'We have been smeared and we hope the government will speed up its probe to nail those who take and give money... We have nothing to hide.'

Far Eastern Group is a conglomerate of hotel, construction, textiles and retailing businesses.

The Apple Daily said prosecutors were investigating whether the money wound up in Chen's overseas bank accounts.

A Taipei court is set to rule on separate breach of trust charges against Hsu and three others for allegedly forging the records of board and investor meetings to facilitate the acquisition.

Local media have alleged Hsu had the backing of Chen's wife Wu Shu-chen in the acquisition of Sogo in return for money vouchers, but prosecutors dropped charges due to lack of evidence.

'We are reviewing relevant information,' prosecutor Chu Chao-liang said when asked to comment on the allegation against Far Eastern.

Chen, his wife, son, daughter-in-law and brother-in-law have all been named as defendants over money-laundering claims which surfaced this month.

The ex-president has admitted his wife wired 20 million US dollars abroad from his past campaign funds, but said she did so without his knowledge.

He has denied money-laundering.

Chen, who left office in May, is already being investigated for allegedly embezzling 14.8 million Taiwan dollars (S$681,213) in special expenses while president, while his wife is on trial for corruption and document forgery in the same case. -- AFP