These federal funds alone total $1.8 billion.
"Next" and "China Times" - later joined by "The
Washington Post" - accused the former Taiwanese
president, Lee Teng-hui, of forming a $100 million
overseas slush fund intended to finance the gathering of
information, influence-peddling, and propaganda
operations. Taiwan footed the bills trips by Congressional
aides and funded academic research and think tank
conferences.
High ranking Japanese officials, among others, may have
received payments through this stealthy venue. Lee is
alleged to have drawn $100,000 from the secret account in
February 1999. The money was used to pay for the studies
of a former Japanese Vice-Defense Minister Masahiro
Akiyama's at Harvard.
Ryutaro Hashimoto, the former Japanese prime minister,
was implicated as a beneficiary of the fund. So were the
prestigious lobbying firm, Cassidy and Associates and
assorted assistant secretaries in the Bush administration.
Carl Ford, Jr., currently assistant secretary of state for
intelligence and research, worked for Cassidy during the
relevant period and often visited Taiwan. James Kelly,
assistant secretary of state for East Asian and Pacific
Affairs enjoyed the Taiwanese largesse as well. Both are
in charge of crafting America's policy on Taiwan.
John Bolton, erstwhile undersecretary of state for arms
control and international security, admitted, during his
confirmation hearings, to having received $30,000 to
cover the costs of writing 3 research papers.
The Taiwanese government has yet to deny the news
stories.
A Japanese foreign ministry official used slush fund
money to finance the extra-marital activities of himself
and many of his colleagues - often in posh hotel suites.
But this was no exception. According to Asahi Shimbun,
more than half of the 60 divisions of the ministry
maintained similar funds. The police and the ministry are
investigating. One arrest has been made. The ministry's
accounting division has discovered these corrupt practices
twenty years before but kept mum.
Even low-level prefectural bureaucrats and teachers in
Japan build up slush funds by faking business trips or
padding invoices and receipts. Japanese citizens' groups
conservatively estimated that $20 million in travel and
entertainment expenses in the prefectures in 1994 were
faked, a practice known as "kara shutcho" (i.e., empty
business trip).
Officials of the Hokkaido Board of Education admitted to
the existence of a 100 million yen secret fund. In a
resulting probe, 200 out of 286 schools were found to
maintain their own slush funds. Some of the money was
used to support friendly politicians.
But slush funds are not a sovereign prerogative.
Multinationals, banks, corporation, religious
organizations, political parties, and even NGO's salt away
some of their revenues and profits in undisclosed
accounts, usually in off-shore havens.
Public-domain text, read in full here on John Shaqi.
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