Taiwan ex-president denies graft guilt but apologises

TAIPEI (Reuters) - Former Taiwan president Chen Shui-bian rejected charges of corruption in closing arguments in court on Wednesday but apologised for the way his family "handled money", officials and local media reported.

Chen, the now incarcerated two-term president from 2000 to 2008, made his statements to the Taipei District Court during a marathon session that began on Tuesday after a series of combative appearances earlier in the year.

"He rejected the criminal charges," said court spokesman Huang Chun-ming. "That should amount to his closing statement."

Prosecutors have charged Chen with embezzling T$104 million ($3.2 million) from a special presidential office fund, accepting bribes of about $9 million related to a land procurement deal and taking another $2.73 million in kickbacks to help a contractor win its bid for a government project.

Chen also apologised shortly before leaving court around 1:30 a.m., local media reported.

"In terms of how my family handled money, it wasn't up to the highest moral standards or political expectations," Taiwan's Liberty Times quoted Chen as saying. "I face all Taiwan citizens in expressing the highest level apologies."

His wife, son and daughter in-law have admitted partial guilt in the case, which also involves a number of aides.

The court is due to make a ruling on Sept. 11, Huang said. Prosecutors say they are not recommending any specific sentence.

The case is likely to affect public opinion of Taiwan's opposition Democratic Progressive Party (DPP), which backed the former president when he was in office and faces tough local elections at the end of the year. Chen left the DPP in August.

Chen's pursuit of independence for self-ruled Taiwan, a hallmark of his term in office, upset rival China as well as the island's staunch ally the United States.

China has claimed sovereignty over Taiwan since 1949, when Mao Zedong's Communists won the Chinese civil war and Chiang Kai-shek's Nationalists fled to the island. Beijing has vowed to bring Taiwan under its rule, by force if necessary.