TAIPEI: Taiwan's major opposition Kuomintang leader Ma Ying-jeou declared yesterday that he would run for "president"in the island's 2008 elections after local prosecutors indicted him on charges of corruption.

The front-runner in the "presidential" race also said he would resign from the post of Kuomintang's (KMT) chairman, but the party asked him to reconsider his decision.

Taiwan prosecutors said yesterday Ma diverted NT$11.18 million ($339,000) from Taipei's special government funds to his private account over five years even though he did not use the money when he was Taipei mayor.

The prosecutors did not say what jail term they would seek but suggested the court give Ma a light penalty if he is found guilty.

Ma protested his innocence and vowed to clear his name. "I respect the law, but there is no way I can accept the accusation of embezzling special government funds," he said.

"I solemnly declare I'll turn my anger into motivation," he said, adding that he will run in the 2008 "presidential" election "without reservation".

It was for the first time that he declared his candidacy for the "presidency".

Ma had previously said he would step down as KMT chairman if he were indicted.

A KMT spokesman said Ma's party membership would be suspended in accordance with party by-laws, but he could be reinstated later if cleared in court.

The KMT has said diverting money from municipal funds is common for Taiwanese local leaders, and is approved by government auditors. The party says the leaders use diverted funds for legitimate purposes, including year-end bonuses for government workers.

But a representative of the ruling Democratic Progressive Party (DPP) called on Ma to apologize.

The prosecutor in mid-November began looking into allegations against Ma concerning the misuse of the special fund from 1998 to 2006 during his tenure.

Ma cannot run for the "presidency" as a member of the KMT if he is suspended from the party. Analysts said last week that were this to be the case, he could run as an independent with informal backing from the party.

Days after the probe began, Ma said the mayor's office had done its own review of the funds in question and discovered that some expense reimbursements were done improperly. He apologized but said the incident was not an example of corruption.

Ma left the mayoral post at the end of his term in December.

Born in Hong Kong on July 13, 1950, Ma grew up in Taipei, and studied law in the capital before obtaining degrees in New York and at Harvard University Law School.

Ma rose quickly through KMT ranks. He was the party's youngest deputy secretary-general at age 33; Taiwan's youngest "minister of justice" at 43, and unseated Chen Shui-bian, the island's current "president", as Taipei mayor in 1998.

Agencies - Xinhua

(China Daily 02/14/2007 page1)