Taiwanese President Denies He Stole Funds

"I apologize to all our people and to my associates in the ruling party for hurting the nation's image and causing political turmoil," he said.

Through most of the 80-minute appearance, Chen spoke in Taiwan's own dialect rather than Mandarin Chinese, emphasizing his roots and his role as a champion of Taiwanese national identity. After his lengthy speech, he took several questions from reporters.

Chen devoted much of the speech to outlining the bureaucratic procedures for disbursing the secret funds, at one point holding up a yellow and blue receipt for viewers to see. Vague and confusing rules were responsible for the prosecutor's conclusion that money was embezzled through use of forged receipts, he said, and often members of his own staff disagreed about what should have been done.

Three senior aides were also indicted alongside Chen's wife.

If the diplomatic activities in question were not so sensitive, Chen added, he could explain where the money went. But his responsibility to Taiwan prevented him from doing so, he said, even at the cost of allowing his reputation to be impugned and, perhaps, of facing criminal charges after he leaves office.

"I love my country," he declared. "I love Taiwan."

The root of the problem, he went on, is mainland China's relentless campaign to isolate Taiwan and prevent it from maintaining diplomatic relations with other countries. The Beijing and Taipei governments have long dueled for recognition by other countries, particularly small Pacific island states, and both have been reported as paying off political leaders to influence their own governments' policies.

"Nobody can really understand how difficult it is for the president of Taiwan to carry out his duties," Chen lamented.