Taiwan first lady cleared of graft

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The wife of Taiwan's President Chen Shui-bian has been cleared of wrongdoing by prosecutors investigating a corruption scandal.

Wu Shu-chen was accused of accepting vouchers from a department store in return for her influence.

Prosecutors said there was no evidence that she had intervened during the Sogo store's takeover in 2004.

President Chen has been under pressure over a series of scandals involving his family and close aides.

The allegations started in May when his son-in-law, Chao Chien-ming, was detained and later charged with insider trading.

Prosecutors have also questioned Mr Chen over allegations of misuse of public funds.

Mass protests

Taiwan's first lady was questioned over her alleged involvement in the Sogo takeover in July.

But Lin Chin-tsun, Chief prosecutor of the Taipei District Public Prosecutors Office, said on Monday: "There is no evidence to show that she was part of the Sogo case."

Two businessmen have been charged with breach of trust in relation to the case.

Mr Chen, whose term of office is due to run until 2008, has apologised for the scandals involving his family and officials but has refused to resign.

He survived an unprecedented parliamentary attempt by the opposition Kuomintang to remove him from office in June.

Tens of thousands of people - both supporters and opponents of the president - have been taking to the streets in recent weeks.