In brief: Ex-leader accused of embezzlement

Taipei, Taiwan – Former President Lee Teng-hui, one of the towering figures of modern Taiwanese politics, was indicted today on charges of embezzling from a state fund.

Prosecutor Chen Hong-ta said Lee and top aide Liu Tai-ying had been charged with embezzling $7.79 million from a secret diplomatic fund to set up a think tank meant to serve Lee’s private office after he left political life.

“Lee Teng-hui pocketed $7.79 million for his own personal use through money-laundering,” the statement said. “In order to set up the Taiwan Research Institute, he consulted with his advisers and decided to get the money from a National Security Bureau project fund.”

Lee has repeatedly denied embezzling any NSB funds. His office had no immediate comment but said his lawyers would hold a news conference today.

Still vigorous at 88, Lee served as Taiwan’s president for 12 years starting in 1988. He is widely credited with moving Taiwan’s nascent democracy forward by giving crucial support for direct presidential and legislative polls.

Tropical storm has potential to flood

Veracruz, Mexico – The first tropical storm of the Atlantic hurricane season gained force as it headed for Mexico’s central Gulf coast Wednesday evening, bringing a threat of floods and mudslides.

Tropical Storm Arlene could become a weak hurricane before hitting land north of the coastal city of Tuxpan today, said the U.S. National Hurricane Center in Miami. Officials in the states of Veracruz, Tamaulipas and San Luis Potosi said they were monitoring the storm and preparing for possible flooding.

The state oil company, Petroleos Mexicanos, said it was considering whether to evacuate its oil platforms off the Veracruz coast but had made no public announcement by Wednesday evening.

Rain was falling along the coast ahead of the storm, and officials warned residents about impending winds and rain. Officials said 6 inches of rain were possible in northern Veracruz state.